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Development Return Ratio

Development Return Ratio = Total revenue from community support and Fundraising/Total expense for the Development Function.

This measurement is basically a ROI (Return on Investment) calculation. It measures the number of dollars returned from each dollar invested in the attempt to garner community funds.

Measurement Average Acceptable Excellent
Development Ratio 3:1 6:1

The Median Hospice gets roughly a $3 to $6 dollar return for every dollar of Development & Fundraising expense. If your Hospice is not doing as well in this area as you would like, here are some suggestions. Common problems are (1) too many small/ineffective fundraisers, (2) a leader lacking in people skills and natural charisma, or (3) lack of experience/organization/direction. Look into the activities and leadership of the area. Our suggestion is to focus on large seasonal events with either a high return or high viability. Here is a statement that is true for so many Hospices, "Fundraising provides the least return for the most effort." Though community support is great and is a competitive advantage for the NFP Hospice, more attention and focus should be directed towards operations and creating positive Net Income from patient services. If the number is above 20, you might suspect that you have a problem with the accounting or you have an elite Development department.

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ADC Average Length of Stay Benefits Percent Caseload Expectations Computed Caseloads Crisis Care Percent Served Days Cash on Hand Days in AP Days in AR Debt to Equity Development to Return Ratio Development Signature Programs Direct Labor % of All Labor Direct Labor NPR Direct Labor PD Direct Patient Related Expenses NPR Direct Patient Related Expenses PD Facility Mix Percentage Facility Related Facility Team Patient Days Percent Indirect Labor Marketing Incentive Median Length of Stay Mileage Rate Net Operational Income Net Revenue PD Operational Costs Organizational Net Income % of Hospice Homecare Net Revenue Revenue to Payroll Dollar Segment Indirect Percent Net Revenue Segment Net Income The Role of Financial Reserves Total Indirect Volunteer Level of Activity What is Net Patient Revenue What is The Model