Glossary
Analytics & Forecasting

Donation Growth Rate Calculation

By: Alec Hollingsworth
Updated:  
July 16, 2025

Definition:

Donation Growth Rate Calculation measures the percentage change in donations over a defined period, indicating fundraising performance trends.
Donation Growth Rate Calculation is the process of determining the percentage increase or decrease in donation revenue over a specific period—usually annually, quarterly, or monthly. This metric measures how effectively a nonprofit is expanding its donor base or increasing the contributions from existing donors. The calculation is typically performed using the formula: [(Donation Amount in Current Period – Donation Amount in Previous Period) / Donation Amount in Previous Period] x 100. Understanding donation growth rate helps organizations identify fundraising trends, set realistic goals, and evaluate the effectiveness of their donor engagement strategies. It is a core component of strategic planning and financial health assessment for nonprofits.

Key Takeaways

  • Tracks the increase or decrease in donation revenue
  • Helps assess fundraising strategies
  • Informs future goal setting
  • Supports strategic financial decisions

Why It Matters

It reveals fundraising trends and supports informed strategic planning.

Real World Example

A local animal shelter received $50,000 in donations in 2022 and $60,000 in 2023. To calculate the donation growth rate, they subtract $50,000 from $60,000, getting $10,000. Dividing $10,000 by the previous year’s $50,000 and multiplying by 100 gives a 20% growth rate. This positive trend allows the shelter’s leadership to demonstrate success to their board, motivate their fundraising team, and make informed decisions about future campaigns. If the rate had declined, they could dig deeper into donor engagement or campaign strategies to identify areas for improvement.

Frequently Asked Questions

How is the donation growth rate calculated?

Subtract last period's donation total from the current period's, divide by the previous period's amount, and multiply by 100 to get the percentage change.

Why is tracking donation growth rate important?

It helps nonprofits understand fundraising trends, evaluate campaign effectiveness, and set realistic future goals.

Can Keela help automate donation growth rate tracking?

Yes, Keela’s reporting tools automatically track donation trends and calculate growth rates, saving time and providing actionable insights.

What time periods can be analyzed for growth rate?

You can analyze donation growth rates monthly, quarterly, or annually, depending on your organization’s reporting needs.

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