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 | 4:1 | 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.
For more related information, click here.