Return on Investment

New Definition of ROI for the Social Sector

During the Association of Fundraising Professionals (AFP) International Conference last week in Baltimore, the outgoing Chair of AFP offered a new definition of ROI: Results, Outcomes and Impact. While the words themselves can mean different things to different people, the message was clear. Donors want more than just a relationship with an organization and moreover, they want more than a testimonial or a picture. They want to know that their gift, or investment, has produced a tangible and meaningful result for the organization and/or its beneficiaries. This is certainly the case for more and more institutional funders, including foundations and corporations, and it is increasingly true for individual donors.