Fundraising does more than bring money in. For trustees and senior leaders, the focus is on whether each pound raised is sustainable, efficient and aligned with the charity’s mission. That’s where fundraising ratios come in.

Numbers, such as cost per pound raised, return on investment (ROI) or lifetime value help boards judge whether fundraising activities create long-term value, whether donor relationships are being nurtured and whether resources are being used wisely.

The challenge is that ratios can confuse. Different charities calculate them in different ways, and boards often only see the headline numbers without context.

When explained clearly, however, these indicators give trustees the assurance that fundraising is well-managed and worth continued investment.

In this guide, we’ll break down the key ratios, explain what they really show and outline how to present them in board packs, so trustees get the clarity they need.

Cost per Pound Raised – The Most Recognised KPI

Cost per pound raised is the figure most boards expect to see. It shows how much it costs to bring in £1 of voluntary income. The calculation is simple: divide fundraising expenditure by the income generated.

For example, if your charity spent £200,000 on fundraising activity and brought in £800,000, the cost per pound raised would be 25p. This tells trustees that for every £1 given, 75p goes directly to charitable work after fundraising costs.

The value of this ratio lies in its clarity. Trustees and funders can quickly compare it against sector benchmarks and judge efficiency. But it should never be viewed in isolation.

Different channels come with different cost profiles — a gala dinner or legacy campaign will always look more expensive than payroll giving or online donations. What matters is explaining why costs vary, and how each channel contributes to long-term sustainability.

When presenting this ratio to the board, add commentary. Show trends over time, explain investment decisions and highlight how certain activities lay the groundwork for future income. Without that context, cost per pound raised risks becoming a blunt measure which undervalues strategic fundraising.

Return on Investment – Understanding the Bigger Picture

Return on investment, (ROI) gives trustees a wider view of fundraising performance. Instead of focusing only on costs, it shows how much income is generated for every pound spent.

The formula is income divided by expenditure.

If your charity invests £100,000 in fundraising and secures £400,000 in donations, the ROI is 4:1. This means for every £1 spent, £4 comes back. Boards find this ratio useful because it balances the conversation: high fundraising costs are easier to justify when the return is strong.

ROI also helps when comparing fundraising channels. A direct mail campaign may deliver £2 for every £1 spent, while a corporate partnership may deliver £10 for every £1.

Both have value, but they achieve different aims — one builds reach, the other depth. What matters for trustees is understanding how each channel fits into the charity’s overall income strategy.

When reporting ROI, include both short-term and long-term views. Some activities, like legacy fundraising, take years to mature. Others, such as digital appeals, can generate quick wins.

Presenting both time-horizons reassures boards that you are balancing today’s results with tomorrow’s sustainability.

Donor Lifetime Value – Showing the Long-Term Payoff

Donor lifetime value (LTV) measures how much a supporter is likely to give over the course of their relationship with your charity. It goes beyond single campaigns and helps boards see the value of investing in retention, stewardship and supporter care.

To calculate LTV, you combine the average donation amount, how often donors give and how long they typically stay engaged.

For example, if the average annual gift is £100, donors give for seven years and retention rates hold steady – the LTV is £700.

This figure is powerful in board discussions. It shifts the focus from one-off costs to the bigger financial picture. A campaign which brings in donors at a cost of £50 each may look expensive if you only consider year one. But if those donors stay for five years and give £500 in total, the investment looks far more worthwhile.

Trustees also benefit from seeing how LTV varies by channel. Donors acquired through payroll-giving may stay for longer than those acquired through a one-off event.

Highlighting these differences helps boards understand why investing in supporter journeys as well as engagement programmes pays off over time.

Comparing Fundraising Channels

Boards often want to know which fundraising channels perform best. The challenge is that each channel has different costs, payback periods and measures of success. Comparing them fairly requires clear context.

• Events may bring strong community engagement but usually involve high upfront costs and heavy staff time. Their ROI may look modest compared to digital campaigns, yet events can strengthen relationships that lead to higher long-term giving.
• Direct mail remains effective for certain demographics, though the initial cost per pound is higher. When combined with follow-up tasks, its value grows.
• Digital campaigns often deliver quick returns at relatively low cost but retention can be weaker unless ongoing engagement is built in.
• Major donor and legacy fundraising are different again: they require patience, skilled stewardship and upfront investment in staff, yet they can transform income over the long term.

For trustees, the key is to see a balanced picture. Instead of treating channels as competitors, show how each contributes to your fundraising mix. A simple table or chart that shows cost, short-term ROI and long-term potential can make the differences clear without complex jargon.

How to Present KPIs in Board Packs

When trustees review fundraising performance, the way information is presented makes all the difference. A cluttered spreadsheet may overwhelm, while selective charts without context can mislead. The board’s time is limited, so the information you share must be focused, consistent and easy to interpret.

Link KPIs to Strategy

Every fundraising KPI should point back to the charity’s wider goals. If trustees are monitoring the growth of regular giving, highlight donor lifetime value and retention rates.

If digital expansion is the priority, show cost per acquisition and early donor retention for online campaigns.

Framing each figure against the agreed strategy helps trustees see progress rather than isolated numbers.

Choose the Right Format

Data alone rarely tells a clear story. Visuals such as line graphs, bar charts or dashboards help trustees to spot patterns at a glance.

A line graph that tracks cost per pound over time shows whether efficiency is improving. A bar chart comparing ROI across different fundraising channels helps trustees understand where resources are performing best.

Consistency in design — colours, headings, scales — makes packs easier to follow meeting after meeting.

Provide Narrative Explanations

Numbers need context. A short narrative note beside each KPI helps trustees understand what is happening behind the figures.

For example: “Event costs rose this quarter due to a venue change, but income grew proportionately and supporter satisfaction scores improved.”

These explanations prevent misinterpretation and highlight the actions being taken.

Highlight Risks and Successes

Board packs should not shy away from risk. Trustees value a balanced picture: both where fundraising has outperformed expectations and where warning signs appear.

Unexplained variances in ROI or a sudden change in retention rates should be flagged clearly. This gives trustees the chance to ask the right questions and support corrective action early.

Keep Language Accessible

Avoid technical fundraising terms that may not be familiar to all trustees. Replace “attrition” with “donors leaving” or “channel attribution” with “where donations are coming from.”

Plain English ensures that every trustee, regardless of background, can engage with the discussion.

The aim is to make the board confident in the fundraising story, not to test their fluency in sector jargon.

Build Confidence Through Clarity

A well-structured board pack builds confidence in the fundraising team. It shows trustees that fundraising performance is being tracked carefully, that risks are being managed and that progress is linked directly to the charity’s mission.

With clarity and consistency, the board can move quickly from reviewing data to making informed strategic decisions.

Turning Ratios into Better Decisions

Boards do not need long lists of metrics. They need a focused set of numbers that tell the story of fundraising clearly and accurately. Used this way, ratios strengthen accountability and give leaders the evidence they need to plan with confidence.

If you want support in choosing the right KPIs, building clear board packs, or interpreting results, speak with one of our charity accountants. We can help you create reporting which not only meets compliance but strengthens both governance and long-term planning.