Fundraising Performance Metrics: Why Nonprofits Must Measure What Matters

In the ever-evolving landscape of nonprofit fundraising, understanding and leveraging performance metrics isn’t just helpful—it’s vital. In a recent episode of the Nonprofit MBA Podcast, host Stephen Halasnik, co-founder of Financing Solutions, a leading lender to nonprofits, sat down with Greg Warner, founder of MarketSmart, to dissect the essential role of fundraising performance metrics in nonprofit growth. Their conversation sheds light on the significance of donor behavior data, measuring engagement, and building meaningful relationships with supporters.

The Real Reason Fundraising Metrics Matter

Many nonprofits face stagnation because they focus too heavily on surface-level metrics—total dollars raised, donor counts, or campaign response rates—without digging deeper into donor behavior. According to Greg Warner, this is a fundamental mistake.

“What we need to focus on is why people give, not just how much,” he says.

Fundraising is a relationship-driven process. Metrics should reflect not just financial transactions but the depth of donor engagement. Warner argues that understanding why donors are motivated to give—what drives them emotionally or spiritually—is where the true power of data lies.

Traditional Fundraising Tactics Are Broken

Warner boldly states that traditional fundraising tactics are often counterproductive. Tactics like cold outreach, direct mail blitzes, or emotionally manipulative campaigns may get short-term results but can alienate potential long-term supporters.

“The churn is very high,” Warner warns, referencing the high turnover rate in donor bases. “That’s because we don’t focus on relationships.”

Instead, Warner advocates for a shift to permission-based marketing—a philosophy that prioritizes donors’ preferences, timing, and interests. Nonprofits that embrace this approach not only retain more donors but also build stronger, more sustainable revenue streams.

The Importance of Donor Engagement Metrics

One of the most overlooked yet valuable categories of fundraising metrics is donor engagement. Warner emphasizes the importance of tracking what he calls “qualitative metrics”—website visits, email open rates, downloads, event participation, and even how much time someone spends reading a blog post.

“These are the signals of intent,” he explains.

While these interactions may not immediately result in a gift, they often precede major contributions. A donor who frequently visits your website, reads your impact reports, and attends webinars is far more likely to become a major giver than someone who simply responds to a one-time mailing.

Stop Focusing on Vanity Metrics

Nonprofit leaders often cling to vanity metrics—numbers that look impressive but offer little insight into fundraising performance or future success. Warner and Halasnik agree that data like total dollars raised can be misleading.

“We’ve seen organizations raise a lot of money and then have to shut down,” Halasnik points out.

Instead of tracking superficial statistics, nonprofits should zero in on metrics tied to mission advancement. Are donors giving again? Are they increasing their gifts? Are they engaging with the content? Metrics that answer these questions are far more valuable.

Marketing Automation and Fundraising Intelligence

One of the key takeaways from Warner’s insights is the rising importance of marketing automation and digital donor intelligence. Platforms like MarketSmart provide technology that identifies which donors are most likely to give, when they’re likely to give, and what messaging resonates with them.

This type of data-driven fundraising allows nonprofits to prioritize outreach to high-value donors and to craft personalized, impactful messages.

“Every interaction should bring the donor closer to the cause,” says Warner.

Technology doesn’t replace the human element of fundraising—it enhances it, providing fundraisers with the insight they need to be more strategic and intentional.

The Role of Leadership in Data-Driven Fundraising

Halasnik and Warner both stress the importance of leadership in driving a culture of metrics and performance. Many development teams are stuck in outdated models because senior leadership hasn’t prioritized data.

“If the board and executive team aren’t behind it, it won’t happen,” Halasnik observes.

Leadership must set the tone by valuing the right metrics, investing in technology, and holding teams accountable for engagement, not just dollars raised. This cultural shift often leads to more efficient teams, higher morale, and significantly better fundraising outcomes.

Major Gift Fundraising Starts with Listening

One of the most actionable strategies discussed in the podcast is how to cultivate major gifts. Warner explains that the pathway to larger donations begins long before a gift is made. It starts with listening.

By analyzing behavioral data—such as which articles donors read, which videos they watch, or which events they attend—fundraisers can glean invaluable insights about their interests. These touchpoints allow fundraisers to begin conversations that are timely, relevant, and donor-centered.

“It’s not about pushing. It’s about helping,” Warner emphasizes.

Major gifts are not the result of clever pitches but of meaningful relationships nurtured over time.

Reframing the Development Team’s Role

In many nonprofits, development professionals are seen primarily as fundraisers. Warner encourages a broader view.

“The job of development is to build trust,” he explains.

Building trust with donors requires authenticity, consistency, and transparency. It also requires being data-informed—understanding which strategies are working, which aren’t, and why.

Development professionals should think of themselves as facilitators of donor impact. Their role is to connect people to causes they care about in a way that feels personal and fulfilling.

It’s Time to Embrace Smart Fundraising

Ultimately, Halasnik and Warner agree that the future of fundraising is smart, data-driven, and donor-focused. By shifting from a transactional to a relational model—and backing that model with the right performance metrics—nonprofits can thrive even in challenging environments.

Here’s a quick summary of actionable takeaways from the episode:

• Track donor engagement, not just donations. Monitor interactions like email opens, site visits, and event attendance to identify who is most interested.
• Stop using “spray and pray” tactics. Focus on personalized, targeted outreach based on real donor behavior.
• Prioritize long-term relationships over short-term gains. Churn is expensive; retention is powerful.
• Invest in marketing automation and donor analytics tools. These platforms increase efficiency and improve targeting.
• Train leadership and development teams to focus on value-driven metrics. Everyone needs to be aligned on what success looks like.

Conclusion: Build Relationships, Not Just Campaigns

The most successful nonprofits in today’s environment are those that understand fundraising is about more than just money. It’s about people—why they give, how they want to be engaged, and what they expect in return. By using performance metrics that track engagement, intent, and relationship quality, nonprofits can grow more sustainably and with greater impact.

As Greg Warner puts it, “The fundraising world doesn’t need more volume. It needs more value.”