KPIFundraising & Income

Cost per New Donor

Average cost incurred to acquire one new donor through fundraising campaigns

What is Cost per New Donor?

Cost per new donor is the average spend needed to win one new donor. It shows how expensive donor acquisition is.

Charities often spend more to acquire a donor than the first gift brings in, expecting to recover the cost over the donor's lifetime, so this figure is best read with donor lifetime value.

How this KPI is measured

Function
Fundraising & Income
Sub-function
Donor Acquisition
Industry
Not-for-Profit / Charity
Type
Lagging
Impact
Financial control
Unit
$
Measurement frequency
Monthly / Quarterly
Formula
Total donor acquisition spend / Number of new donors acquired

How to calculate it

Divide total donor acquisition spend by the number of new donors acquired.

For example, if a charity spent 150,000 on acquisition and won 3,000 new donors, the cost per new donor is 50.

Calculate by channel, such as digital, face-to-face and direct mail, since costs and donor quality differ.

Where it is used

  • Comparing acquisition channels

    Find the cost-effective ones.

  • Planning acquisition budgets

    Estimate cost of growth.

  • Setting payback expectations

    Compare with lifetime value.

How to improve it

Tips and common mistakes

  • Cheap donors who lapse quickly are not good value.
  • Include all acquisition costs.
  • Follow fundraising regulation and consent rules.

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