Benchmarking

Benchmarking refers to the comparison of key performance indicators (see also KPI) with internal goals, reference values, or industry averages. For nonprofit organizations, benchmarking is a valuable tool for evaluating and optimizing fundraising and communication efforts based on data.

A distinction is made between internal benchmarking (comparing against your own past results or across teams) and external benchmarking (comparing with other organizations or published industry data). The goal of benchmarking is to identify what’s working for others and where there is room for improvement.

In digital fundraising, the abundance of data and tools opens up a wide range of benchmarking opportunities. A/B tests, for example, can help compare conversion rates, average donation amounts, or donor engagement across different campaigns or donor journeys. The Net Promoter Score (NPS) can also serve as a benchmark to measure donor satisfaction and loyalty.