Digital fundraising terms and formulas

A practical plain-English reference for NGO, charity, and non-profit teams tracking digital fundraising performance. It focuses only on the terms, formulas, and calculation examples that help teams understand campaign results, compare channels, brief colleagues, and make better decisions.

How to use this guide

• Use the formulas to check how performance indicators have been calculated
• Compare indicators together, never in isolation
• Check that costs, time periods, and data sources are clear before drawing conclusions
• Treat each indicator as a decision-support tool, not proof on its own
• Translate acronyms into plain language when sharing results with non-specialist colleagues

Quick reference table

Key digital fundraising terms and formulas

ROI: return on investment

Plain-English definition

ROI shows whether an investment created more value than it cost. In some markets, ROI is expressed as a ratio rather than a percentage.

Formula

ROI percentage = (Return - Investment) ÷ Investment × 100 ROI ratio = Return ÷ Investment

Calculation example

An NGO spends €10,000 on a campaign, including creative, media buying, staff time, and platform costs.

The campaign generates €25,000 in donations.

ROI percentage = (€25,000 - €10,000) ÷ €10,000 × 100 ROI percentage = €15,000 ÷ €10,000 × 100 ROI percentage = 150%

ROI ratio = €25,000 ÷ €10,000 ROI ratio = 2.5:1

How to read it

An ROI of 150% means the campaign generated €1.50 in net return for every euro invested. Expressed as a ratio, the same result can be shown as 2.5:1, meaning €2.50 returned for every €1 invested.

Watch out for

ROI depends on what is included in the investment. If staff time, agency fees, platform costs, payment fees, or processing costs are excluded, the result can look better than reality.

ROAS: return on ad spend

Plain-English definition

ROAS measures the revenue generated for each unit spent on advertising.

Formula

ROAS = Revenue from ads ÷ Advertising spend

Calculation example

An organisation spends €2,000 on Meta ads.

Those ads generate €8,000 in donations.

ROAS = €8,000 ÷ €2,000 ROAS = 4

How to read it

A ROAS of 4 means the campaign generated €4 for every euro spent on advertising.

Difference between ROI and ROAS

ROAS only looks at advertising spend. ROI looks at the wider cost of the activity.

If the same campaign also required €3,000 of agency, design, staff time, and platform costs, the ROI is different.

Total investment = €2,000 advertising spend + €3,000 other costs = €5,000

ROI = (€8,000 - €5,000) ÷ €5,000 × 100 ROI = 60%

Watch out for

ROAS can look very strong while the overall campaign is less profitable once all costs are included.

CPA: cost per acquisition or cost per action

Plain-English definition

CPA shows how much it costs to achieve a desired result.

That result could be:

• A new donor
• A regular gift
• An email sign-up
• An event registration
• A petition signature
• A qualified lead

Formula

CPA = Total campaign cost ÷ Number of conversions

Calculation example

A campaign costs €3,000 and generates 150 new email subscribers.

CPA = €3,000 ÷ 150 CPA = €20 per subscriber

How to read it

CPA is only useful if the action has value. A €20 cost per email subscriber may be good or bad depending on how many of those people go on to donate, participate, volunteer, or share the cause.

Watch out for

Make sure everyone agrees what counts as an acquisition or action. A lead, one-off donor, regular donor, and qualified major donor prospect are not equivalent.

CAC: acquisition cost

Plain-English definition

CAC measures the cost of acquiring a new supporter, donor, client, or contact.

In non-profit contexts, CPA is often more precise, because the desired action is not always a purchase.

Formula

CAC = Total acquisition cost ÷ Number of new supporters acquired

Calculation example

If a campaign costs €12,000 and recruits 300 new regular donors:

CAC = €12,000 ÷ 300 CAC = €40 per new regular donor

How to read it

CAC helps assess whether acquisition is sustainable when compared with donor value, retention, and payback period.

Conversion rate

Plain-English definition

Conversion rate is the percentage of people who complete a desired action.

Formula

Conversion rate = Number of conversions ÷ Number of visitors or users × 100

Calculation example

A donation page receives 5,000 visits.

600 people complete a donation.

Conversion rate = 600 ÷ 5,000 × 100 Conversion rate = 12%

How to read it

12% of visitors completed the donation.

Useful question to ask

Where are we losing the most people: landing page, amount selection, personal details, payment, or confirmation?

Donation funnel

Plain-English definition

A donation funnel is the sequence of steps a person goes through before completing a donation.

Example funnel

1. Sees the campaign message
2. Clicks the call to action
3. Lands on the donation page
4. Chooses an amount
5. Enters personal details
6. Completes payment
7. Receives a thank-you message

Useful question to ask

Where do people drop off, and what can we improve at that point?

Funnel abandonment rate

Plain-English definition

Funnel abandonment rate shows the percentage of people who leave the journey between one step and the next.

Formula

Abandonment rate = People who leave at the step ÷ People who reached that step × 100

Calculation example

1,000 people reach the amount selection step.

350 leave before continuing.

Abandonment rate = 350 ÷ 1,000 × 100 Abandonment rate = 35%

How to read it

35% of people who reached this step left before continuing.

Watch out for

A high abandonment rate is not always caused by the page itself. Traffic quality, message alignment, payment methods, trust signals, mobile usability, and load speed can all affect conversion.

CTR: click-through rate

Plain-English definition

CTR shows the percentage of people who clicked after seeing an email, ad, search result, or link.

Formula

CTR = Clicks ÷ Impressions or delivered messages × 100

Calculation example

An email is delivered to 20,000 supporters.

1,200 people click a link.

CTR = 1,200 ÷ 20,000 × 100 CTR = 6%

Watch out for

CTR does not tell you whether people completed the action after clicking. A high CTR with low conversion can indicate a problem on the landing page or in the donation journey.

CPC: cost per click

Plain-English definition

CPC shows how much you pay for each click on an ad.

Formula

CPC = Advertising spend ÷ Clicks

Calculation example

An advertising campaign costs €500 and generates 1,000 clicks.

CPC = €500 ÷ 1,000 CPC = €0.50 per click

Watch out for

Cheap clicks are not always useful clicks. Always compare CPC with conversion rate, gift value, donor quality, and retention.

CPM: cost per thousand impressions

Plain-English definition

CPM shows the cost of displaying an ad 1,000 times.

Formula

CPM = Advertising spend ÷ Impressions × 1,000

Calculation example

An advertising campaign costs €600 and receives 120,000 impressions.

CPM = €600 ÷ 120,000 × 1,000 CPM = €5

How to read it

The campaign cost €5 for 1,000 impressions.

Watch out for

A low CPM can be useful for awareness, but it does not mean the campaign is generating donations efficiently.

Email fundraising indicators

Open rate

Plain-English definition

Open rate estimates the percentage of delivered emails that were opened.

Formula

Open rate = Opens ÷ Delivered emails × 100

Calculation example

An email is delivered to 30,000 people.

12,000 opens are recorded.

Open rate = 12,000 ÷ 30,000 × 100 Open rate = 40%

Watch out for

Privacy changes make open rates less reliable than they used to be. Use them as an approximate signal, not as a precise measure of engagement.

Email click rate

Plain-English definition

Email click rate shows the percentage of delivered recipients who clicked at least one link.

Formula

Email click rate = Clicks ÷ Delivered emails × 100

Calculation example

An email is delivered to 30,000 people.

1,500 people click.

Email click rate = 1,500 ÷ 30,000 × 100 Email click rate = 5%

How to read it

5% of delivered recipients clicked.

Watch out for

Some platforms count total clicks, others count unique clickers. Check which version is used before comparing results.

CTOR: click-to-open rate

Plain-English definition

Click-to-open rate shows the percentage of people who opened the email and then clicked.

Formula

CTOR = Clicks ÷ Opens × 100

Calculation example

An email records 12,000 opens and 1,500 clicks.

CTOR = 1,500 ÷ 12,000 × 100 CTOR = 12.5%

How to read it

CTOR can help assess whether the content, ask, and call to action were persuasive for the people who opened the email.

Watch out for

Because open data is less reliable than it used to be, CTOR is also affected by the limits of open tracking.

Email bounce rate

Plain-English definition

Email bounce rate shows the percentage of sent emails that were not delivered.

Formula

Email bounce rate = Bounced emails ÷ Emails sent × 100

Calculation example

1,000 emails are sent and 40 bounce.

Bounce rate = 40 ÷ 1,000 × 100 Bounce rate = 4%

Useful question to ask

Are these hard bounces, soft bounces, or temporary delivery problems?

Unsubscribe rate

Plain-English definition

Unsubscribe rate shows the percentage of delivered recipients who unsubscribed after an email.

Formula

Unsubscribe rate = Unsubscribes ÷ Delivered emails × 100

Calculation example

An email is delivered to 25,000 people.

125 people unsubscribe.

Unsubscribe rate = 125 ÷ 25,000 × 100 Unsubscribe rate = 0.5%

How to read it

A higher unsubscribe rate may indicate poor targeting, too much frequency, weak relevance, or a mismatch between expectation and content.

Complaint rate

Plain-English definition

Complaint rate shows the percentage of recipients who marked an email as spam or junk.

Formula

Complaint rate = Spam complaints ÷ Delivered emails × 100

Calculation example

An email is delivered to 40,000 people.

20 recipients mark it as spam.

Complaint rate = 20 ÷ 40,000 × 100 Complaint rate = 0.05%

Watch out for

Complaint rate can affect sender reputation and deliverability. It should be monitored carefully, especially during high-volume fundraising campaigns.

Donor value and retention

Average gift

Plain-English definition

Average gift shows the average value of a donation.

Formula

Average gift = Total donation value ÷ Number of gifts

Calculation example

A campaign raises €18,000 from 600 gifts.

Average gift = €18,000 ÷ 600 Average gift = €30

Watch out for

Average gift can be distorted by a few very large donations. Median gift can sometimes give a clearer picture.

Median gift

Plain-English definition

Median gift is the amount in the middle when all donations are ranked from smallest to largest.

Example

If five gifts are €5, €10, €20, €25, and €200, the median gift is €20.

Why it is useful

Median gift is less affected by unusually high or low donations than average gift.

Gift frequency

Plain-English definition

Gift frequency shows how often donors give during a period.

Formula

Gift frequency = Number of gifts ÷ Number of donors

Calculation example

A donor base generates 4,000 gifts from 2,000 donors during a year.

Gift frequency = 4,000 ÷ 2,000 Gift frequency = 2 gifts per donor per year

How to read it

On average, each donor gave twice during the year.

LTV: donor lifetime value

Plain-English definition

LTV estimates the total value a supporter or donor may contribute during the full length of their relationship with the organisation.

Simple formula

LTV = Average gift × Average number of gifts per year × Donor lifetime in years

Calculation example

A regular donor gives €15 per month.

Annual value = €15 × 12 = €180

If the average regular donor stays for 4 years:

LTV = €180 × 4 LTV = €720

Why it is useful

LTV helps assess whether acquisition costs are sustainable. Spending €40 to acquire a donor can look expensive against a first gift of €15, but it may be acceptable if many donors stay for several years.

Watch out for

LTV is an estimate, not a guarantee. Use real retention data whenever possible.

Retention rate

Plain-English definition

Retention rate shows the percentage of supporters, donors, subscribers, or members who continue over a given period.

Formula

Retention rate = Number retained ÷ Number at the start of the period × 100

Calculation example

At the start of the year, an organisation has 1,000 regular donors.

At the end of the year, 850 of those original donors are still active.

Retention rate = 850 ÷ 1,000 × 100 Retention rate = 85%

Useful question to ask

Are we measuring all donors, first-time donors, one-off donors, regular donors, email subscribers, members, or another group?

Churn rate

Plain-English definition

Churn rate is the percentage of supporters, donors, subscribers, or clients who stop during a period.

Formula

Churn rate = Number lost ÷ Number at the start of the period × 100

Calculation example

An organisation starts the year with 1,000 regular donors.

150 stop during the year.

Churn rate = 150 ÷ 1,000 × 100 Churn rate = 15%

Relationship with retention

If retention is 85%, churn is 15%.

Reactivation rate

Plain-English definition

Reactivation rate shows the percentage of inactive or former donors who give again after a campaign or specific action.

Formula

Reactivation rate = Reactivated donors ÷ Inactive donors contacted × 100

Calculation example

A reactivation campaign contacts 5,000 former donors.

250 give again.

Reactivation rate = 250 ÷ 5,000 × 100 Reactivation rate = 5%

Watch out for

Define clearly what "inactive" means before calculating reactivation. For one organisation, it may mean no gift in 12 months. For another, it may mean no gift in 24 months.

Upgrade rate

Plain-English definition

Upgrade rate shows the percentage of existing donors who increase their contribution.

Formula

Upgrade rate = Donors who increased giving ÷ Donors asked to increase × 100

Calculation example

An organisation asks 2,000 regular donors to increase their monthly gift.

180 agree.

Upgrade rate = 180 ÷ 2,000 × 100 Upgrade rate = 9%

How to read it

9% of the donors asked agreed to increase their support.

Payback period

Plain-English definition

Payback period shows how long it takes to recover the cost of acquiring a donor.

Formula

Payback period = Acquisition cost ÷ Monthly net contribution

Calculation example

It costs €60 to acquire a new regular donor.

The donor gives €10 per month, and after fees the monthly net contribution is €9.

Payback period = €60 ÷ €9 Payback period = 6.7 months

How to read it

The acquisition cost is recovered after around 7 months, provided the donor keeps giving.

Watch out for

Payback period depends heavily on retention. If many donors stop before this point, acquisition may not be sustainable.

Campaign and channel interpretation

Attribution

Plain-English definition

Attribution is the method used to decide which channel, message, or campaign receives credit for a conversion.

Example

If someone sees a Facebook ad, later clicks on a Google result, reads an email, and then donates, which source receives the credit?

Watch out for

Attribution is always a model, not the whole truth. Use it to guide decisions, not to pretend you know the full story.

First-click and last-click attribution

Plain-English definition

First-click attribution gives credit to the first recorded interaction.

Last-click attribution gives credit to the last recorded interaction before conversion.

Example

A donor first discovers the organisation through a social ad, later receives an email, and then gives after clicking the email.

First-click attribution credits the social ad.

Last-click attribution credits the email.

Useful question to ask

Which model does this report use, and what does it hide?

Assisted conversion

Plain-English definition

An assisted conversion happens when a channel or touchpoint helped influence a donation without receiving final credit.

Example

A supporter first watches an advertising video, then gives later after clicking an email. The video may have assisted the conversion even if the email receives last-click credit.

Why it is useful

Assisted conversions help show how awareness, engagement, email, search, and paid media can work together.

UTM parameters

Plain-English definition

UTM parameters are small pieces of text added to links to help analytics tools identify where traffic came from.

Common fields

• utm_source: the source of traffic, such as newsletter, google, meta, or a partner name
• utm_medium: the type of channel, such as email, paid_social, organic_social, cpc, referral, or sms
• utm_campaign: the campaign name, such as winter_appeal
• utm_content: the content variant, such as button_a or image_b
• utm_term: the keyword or targeting term, usually for paid search

Example

A campaign link might include:

?utm_source=newsletter&utm_medium=email&utm_campaign=winter_appeal&utm_content=button_a

Useful question to ask

Does everyone use the same naming convention, or are reports fragmented because campaign links are inconsistent?

A/B test

Plain-English definition

An A/B test compares two versions of an element to see which performs better.

Example

A fundraising team tests two donation page headlines:

• Version A: Help families affected by the crisis
• Version B: Your gift can provide emergency food support today

If version B produces a better conversion rate with enough traffic, the team can use it more widely.

Watch out for

Small tests can be misleading. Make sure the difference is meaningful before changing strategy.

Final checklist before trusting a fundraising metric

Closing note

Good digital fundraising is not about collecting acronyms. It is about understanding which activities create income, strengthen relationships, and deserve more attention.

Use these terms as a shared reference when analysing campaigns, comparing channels, or briefing colleagues. The most useful question is often the simplest one: what does this help us decide?