Nonprofit Spelunking’s Post

Webinar is coming up this Friday Not only is this great for fundraisers, but funders and board members too. https://lnkd.in/gv7R3gP4

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Fundraising Mathematician | Autistic | Nonprofit Operations

Cost Per Dollar is not a light bulb. A single 60W incandescent lightbulb produces about 800 lumens. An LED with about 9W can produce roughly the same amount of light. Ignoring the lifespan of these bulbs (incandescent is the worst anyway), objectively we can see that LEDs are way more efficient. But here's the thing. These lightbulbs require a single input: electricity. When we look at Watts per Lumen (in effect... costs per unit of output), we can see that LEDs are WAYYYY better than incandescent. So shouldn't the same type of measure work with charities? It would, if all inputs were normalized to a single unit. That is: time, resources, etc., all need to be quantified as cost. When two nonprofit produce the same output, but one has a staff that is underpaid and works more overtime, is that actually more efficient even though its cost per dollar is low? Not at all. It's an uneven playing field. In fact, there are MANY ways to hide the true cost of inputs, making cost per dollar really a way to get nonprofits to be as creative with accounting as possible. Cost per Dollar is INCREDIBLY useful, but not as an efficiency metric. In fact, I'm talking about it this Friday! Join me as I talk about "Why Cost Per Dollar Might Be the Most Important Metric" and look at how we can think about growth and impact within fundraising. #costperdollar #ctrad #fundraising #nonprofits

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