The Four-Number Formula That Reveals If Your Fundraising Actually Works
By Edward Jengo
Most NGOs measure fundraising by one number – how much came in. That’s the wrong lens.
Here’s a formula – the R.O.A.D. formula – that actually diagnoses what’s working, and what isn’t.
R – Return on Ask (ROA)
Total funds raised ÷ Total funds requested. This tells you how realistic your asks are, not just how successful you were. A 90% ROA on modest asks looks great but may signal you’re underselling your needs. A 20% ROA on ambitious asks might still represent smart, aspirational targeting. Track this per funder type – foundations, individuals, corporates – to see where your pitch is genuinely landing versus where you’re guessing.
O – Overhead Cost of Raising (Cost to Raise a Dollar)
Total fundraising expenses ÷ Total funds raised. If it costs you $0.40 to raise $1, that’s a red flag most NGOs never calculate. This number exposes whether your fundraising strategy is actually sustainable or quietly bleeding resources, especially important when comparing a costly gala against a low-cost grant-writing push.
A – Attrition Rate (Donor and Funder Retention)
Donors this year who also gave last year) ÷ Total donors last year. Most NGOs obsess over new donor acquisition and ignore this number entirely. Yet, retaining an existing funder is far cheaper than winning a new one. A low attrition rate quietly undermines every other fundraising win, because you’re constantly refilling a leaking bucket instead of growing net income.
D – Diversification Index
Percentage of total income from your single largest funder.
If one donor represents 60% of your budget, your organisation is one funding decision away from crisis, regardless of how much you raised this year. A healthy target is no single source exceeding 20-30% of total income. This number reveals risk that raw fundraising totals completely hide.
Why this formula works.
Total funds raised tells you what happened. R.O.A.D. tells you why – whether your asks are calibrated, your spending is efficient, your relationships are sticking, and your organisation is resilient rather than dependent on a single lifeline.
The diagnostic test – run these four numbers against last year’s data right now. If you can’t calculate even two of them, that’s not a fundraising problem; it’s a data problem. It’s the real reason most NGOs can’t tell if they’re actually improving their fundraising or just getting lucky.
(Edward Jengo is a Ugandan fundraising expert, and Chief Executive Officer of Bright Path Consult)
