KPIs Nonprofits Should Track

If you run a nonprofit, you know your mission matters. But you also need to keep an eye on your numbers. Tracking the right KPIs can help you make smart decisions, raise more funds, and use your resources wisely. In the world of nonprofit accounting, KPIs are like a scoreboard that shows if you are on track or falling behind.

Program Efficiency

This KPI shows how much of your spending goes directly to your programs and services compared to overhead. In nonprofit accounting, this is a big one because donors want to know their money is making a real impact.

Fundraising Efficiency

This tells you how much you spend to raise a dollar. If you spend one dollar to raise two dollars, that might be okay. But if you are spending close to what you are bringing in, it is time to rethink your strategy.

Donor Retention Rate

Keeping donors is just as important as finding new ones. This KPI shows how many donors give again from one year to the next. In nonprofit accounting, a strong donor retention rate means you are building trust and relationships.

Operating Reserves

This measures how many months your nonprofit can keep running if no new money comes in. It is a safety net and a key part of financial planning.

Grant Success Rate

If your nonprofit applies for grants, track how many you win compared to how many you apply for. This KPI helps you see if your efforts are paying off or if you need to adjust your approach.

Impact Measurement

Numbers are important, but so is showing the real change you are creating. Track results like people served, programs completed, or outcomes improved. In nonprofit accounting, this KPI connects your finances to your mission.

Why These KPIs Matter

In nonprofit accounting, KPIs are more than just numbers. They tell your story, help you spot problems early, and show donors and boards that you are using funds wisely. When you track them regularly, you can make better decisions and focus on creating the most impact.