The Fundraising Efficiency Ratio is an essential donor metric that helps measure the effectiveness of a nonprofit's fundraising efforts. It is calculated by dividing the total cost of fundraising by the total funds raised. A lower ratio is generally better, indicating that the organization is spending less to raise more money. This ratio helps donors and organizations evaluate whether the fundraising strategies are cost-effective. For nonprofits, a high efficiency ratio means more of the raised funds are being allocated toward the mission, while a low ratio may suggest high operational or fundraising costs. Would you like
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