Data-Driven Fundraising Is Growing. Outcomes Still Decide Trust.

Nonprofit leaders feel constant pressure to prove value. Budgets tighten. Expectations rise. Donors ask sharper questions. Boards want clearer answers. In this environment, fundraising strategies are shifting. Analytics, benchmarks, and performance ratios are becoming regular parts of conversations that once focused almost entirely on relationships and storytelling.

The Marts&Lundy Fundraising Investment Study 2025, led by Marts&Lundy Chief Strategy Officer Sarah Clough and highlighted by NonProfit PRO, confirms what many nonprofit leaders already sense. The sector is moving steadily toward data informed decision making. Many organizations are strengthening their financial analysis skills and using metrics such as return on investment and cost per dollar raised to guide budget decisions. This change signals maturity. It also raises an important concern. Financial efficiency metrics alone cannot explain real impact. Funders want to see what actually changes in the communities nonprofits serve.

What the Marts&Lundy Fundraising Investment Study 2025 Shows

The Marts&Lundy Fundraising Investment Study 2025 reviewed hundreds of organizations across several countries and multiple subsectors. Participants ranged from smaller nonprofits with annual fundraising under ten million dollars to very large institutions raising more than two hundred fifty million dollars each year. The breadth of the sample provides useful context for sector wide patterns.

Several findings stand out.

Performance Benchmarks Are Becoming Common Language

The study reported a median return on investment of 4.5 and a median cost per dollar raised of eighteen cents. Arts and culture organizations posted especially strong figures, with a median ROI above six and a cost per dollar raised near thirteen cents. Higher education also reported solid financial ratios.

These numbers matter. They give nonprofit leaders concrete evidence when requesting fundraising budgets. They also reinforce the idea that fundraising is an investment that can generate measurable financial return rather than an administrative expense that drains resources.

Analytics Adoption Is Rising but Still Uneven

Only about one quarter of organizations reported consistent use of ROI, CPDR, or forecasting data when making investment decisions. At the same time, nearly eighty percent rely on some form of internal performance data to justify additional development spending. The message is clear. Most nonprofits recognize the value of data, yet many lack consistent systems or processes that support regular analysis.

Peer benchmarking emerged as one of the most influential tools in budget discussions. Leaders want comparisons. They want to know how their results stack up against similar organizations. Data becomes persuasive when it provides context rather than isolated figures.

Scale and Infrastructure Influence Results

Organizations raising more than two hundred fifty million dollars annually reported far higher ROI and far lower CPDR than smaller nonprofits raising under ten million dollars. Larger institutions benefit from established infrastructure, specialized staff, and diversified fundraising programs. Smaller organizations often struggle to build similar capacity. This gap creates a cycle where limited resources restrict investment, which then limits growth.

Barriers Remain Strong

Competing priorities topped the list of obstacles in fundraising budget conversations. Many leaders also reported difficulty gaining executive understanding of financial efficiency metrics. Tools and dashboards exist, yet cultural alignment and leadership buy in lag behind. Data without shared understanding rarely changes behavior.

Sarah Clough of Marts&Lundy described the findings as evidence of momentum across the sector. Her perspective highlights a key theme. Nonprofits are moving forward with intention, yet full integration of analytics into strategy and culture is still developing.

Financial Metrics Tell Only Part of the Story

Return on investment and cost per dollar raised offer valuable insight. They help organizations evaluate efficiency and guide budget decisions. Yet funders increasingly ask a deeper question. What changed for the people served?

Counting activities and transactions no longer satisfies many grant makers and donors. Serving a thousand clients or hosting a hundred workshops describes effort. It does not explain results. Funders want evidence of transformation. They want to know whether families gained stability, students improved academic performance, or individuals secured employment.

This expectation reflects broader accountability pressures across philanthropy. Foundations and corporations must justify their own investments. Government agencies face public scrutiny. Clear outcome reporting helps them defend funding decisions with confidence. Nonprofits that communicate measurable change become trusted partners rather than hopeful applicants.

Mission Focus Creates the Foundation for Measurement

Outcome tracking begins with clarity of purpose. Organizations that struggle to define meaningful metrics often lack a focused mission or clearly articulated goals. When purpose is broad, measurement becomes vague. When purpose is precise, indicators become obvious.

Mission focused fundraising aligns financial strategy with organizational direction. Leaders who understand exactly who they serve and how they create change can select outcomes that reflect true success. Data collection becomes intentional rather than overwhelming. Teams see a direct connection between daily work and long term goals.

A focused mission also strengthens fundraising conversations. Donors seek alignment between their priorities and the organization’s purpose. Clear mission statements supported by measurable outcomes create confidence. Stakeholders feel ownership in shared goals rather than uncertainty around vague intentions.

The Shift Toward Outcomes Has Been Building for Years

The growing emphasis on analytics in fundraising may feel new to some leaders, yet the movement toward measurable impact has been building for a long time. Nonprofits have collected data for decades. The difference now lies in expectations and accessibility. Technology makes analysis easier. Funders expect transparency. Communities demand accountability.

SureImpact was created in response to these realities. Many organizations relied on systems built for donor management or case notes while struggling to produce clear outcome reports. Data lived in separate spreadsheets, databases, and documents. Staff spent hours assembling reports rather than improving programs.

The vision behind SureImpact centered on a simple belief. Nonprofits need a purpose built platform that supports outcome tracking as a daily practice rather than an occasional project. When measurement integrates into routine operations, several positive shifts occur. Strategic planning becomes more informed. Staff recognize the link between effort and results. Boards gain confidence in decisions. Funders receive consistent evidence of progress.

Outcome measurement also strengthens organizational culture. Teams move from reactive reporting to continuous learning. Questions shift from “How many people did we serve?” to “What improved for the people we serve?” This change influences program design, staffing decisions, and partnership strategies.

Building Complete Impact Narratives

The Marts&Lundy Fundraising Investment Study 2025 shows progress in financial analytics. That progress deserves recognition. Financial stewardship remains essential. Still, financial efficiency represents only one dimension of accountability. A complete impact narrative connects dollars raised with lives changed.

Organizations that combine efficiency metrics with outcome data stand in a strong position. They can show both responsible resource management and tangible community benefit. This dual perspective resonates with funders who seek confidence in both fiscal discipline and mission effectiveness.

Consider the difference between reporting cost per dollar raised and reporting cost per successful outcome. The first describes fundraising efficiency. The second describes real world change. When nonprofits communicate both figures, they provide a fuller picture of value. Trust grows when transparency expands.

Practical Steps for Nonprofit Leaders

Leaders seeking progress can start with a few focused actions:

• Revisit mission clarity and confirm that goals are specific and meaningful.

• Select a small group of core outcomes that represent true success rather than tracking every possible metric.

• Invest in systems and training that integrate data collection into everyday workflow.

• Engage boards and executive teams in conversations about both financial ratios and program outcomes.

• Communicate results consistently across reports, proposals, and donor discussions.

These steps require intention and commitment. They also produce long term benefits in strategy, culture, and fundraising success.

A Sector Advancing With Purpose

The nonprofit sector continues to evolve. Data-driven fundraising signals progress, yet analytics alone will never replace mission clarity or outcome measurement. Numbers describe efficiency. Outcomes describe change. Together they form the foundation of accountability and trust.

Organizations that understand this balance position themselves for sustainable growth. They communicate value with clarity. They strengthen relationships with funders. They guide decisions with evidence rather than assumption. Most important, they demonstrate that investments lead to measurable progress in the communities they serve.

Fundraising strategies will continue to develop. Technology will continue to improve. Expectations will continue to rise. Through all of these changes, one principle remains steady. Nonprofits exist to create meaningful impact. Clear measurement and transparent communication make that impact visible, credible, and fundable.

Download our free resource, The Ultimate Guide to Impact Measurement.