U.S. Nonprofit Fundraising Efficiency:
2024 Benchmarks
The median U.S. nonprofit spends $0.06 to raise each dollar of contributions — based on 68,247 organizations filing IRS Form 990 for tax year 2024. Fundraising costs vary significantly by budget size, sector, and geography. Here is what the data shows.
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Median Cost to Raise $1
$0.06
Mean Cost to Raise $1
$0.11
U.S. Organizations Analyzed
68,247
Total Fundraising Spend
$13.2B
Tax year 2024 data based on 68,247 U.S. organizations that reported both fundraising expenses and contributions on IRS Form 990. Organizations where fundraising expenses exceeded contributions are excluded to remove outliers. We continuously update our datasets as new filings become available from the IRS.
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Fundraising Cost per Dollar Raised by Organization Budget Size
Larger nonprofits raise money more efficiently. Organizations with $100M+ budgets spend a median $0.04 per dollar raised, compared to $0.06 for sub-$1M organizations. Based on 68,247 organizations with revenue data from tax year 2024 Form 990 filings.
| Budget Size | Median Cost | 25th Pctl | 75th Pctl | # Orgs |
|---|---|---|---|---|
| Under $1M | $0.061 | $0.020 | $0.146 | 38,140 |
| $1M – $5M | $0.062 | $0.023 | $0.132 | 20,291 |
| $5M – $10M | $0.059 | $0.021 | $0.127 | 4,411 |
| $10M – $25M | $0.055 | $0.018 | $0.127 | 3,054 |
| $25M – $50M | $0.052 | $0.016 | $0.144 | 1,168 |
| $50M – $100M | $0.045 | $0.016 | $0.125 | 607 |
| $100M+ | $0.035 | $0.011 | $0.107 | 576 |
| Total | 68,247 |
Source: IRS Form 990 electronically filed returns, Tax year 2024. All 68,247 organizations with fundraising expense and contribution data included.. 7 categories shown.
Get more data →Fundraising Cost per Dollar Raised by Sector
Fundraising costs vary widely across sectors. Diseases & medical research organizations spend the most to raise each dollar, while food & agriculture and public safety nonprofits are the most efficient. Based on NTEE classification of 2024 Form 990 filings.
| Sector (NTEE) | Median Cost | 25th Pctl | 75th Pctl | # Orgs |
|---|---|---|---|---|
| Diseases & Medical | $0.090 | $0.035 | $0.187 | 1,138 |
| Arts & Culture | $0.083 | $0.032 | $0.176 | 6,522 |
| Medical Research | $0.080 | $0.033 | $0.161 | 457 |
| Recreation & Sports | $0.077 | $0.027 | $0.185 | 2,136 |
| Youth Development | $0.075 | $0.029 | $0.150 | 2,046 |
| Healthcare | $0.065 | $0.023 | $0.152 | 3,393 |
| Education | $0.065 | $0.021 | $0.151 | 6,116 |
| Human Services | $0.053 | $0.018 | $0.124 | 9,021 |
| Environment | $0.055 | $0.021 | $0.117 | 2,626 |
| International | $0.048 | $0.015 | $0.102 | 2,222 |
| Animal-Related | $0.048 | $0.015 | $0.116 | 2,543 |
| Religion | $0.048 | $0.017 | $0.110 | 3,156 |
| Housing & Shelter | $0.045 | $0.016 | $0.105 | 1,511 |
| Public Safety | $0.038 | $0.014 | $0.097 | 1,297 |
| Food & Agriculture | $0.034 | $0.012 | $0.087 | 1,174 |
| Total | 45,358 |
Source: IRS Form 990 electronically filed returns, Tax year 2024. Sectors with 400+ organizations shown. Sorted by median cost descending.. 15 categories shown.
Get more data →Fundraising Cost per Dollar Raised by State (Top 15 & Bottom 10)
Massachusetts, New Jersey, and Rhode Island have the highest fundraising costs per dollar raised. Alaska, Delaware, and Hawaii are the most efficient. State differences reflect cost of living, sector mix, and donor market dynamics. Based on states with 100+ organizations.
| State | Median Cost | 25th Pctl | 75th Pctl | # Orgs |
|---|---|---|---|---|
| Massachusetts | $0.077 | $0.029 | $0.161 | 2,151 |
| New Jersey | $0.074 | $0.026 | $0.153 | 1,657 |
| Rhode Island | $0.070 | $0.028 | $0.145 | 293 |
| Arkansas | $0.069 | $0.019 | $0.151 | 387 |
| Missouri | $0.069 | $0.023 | $0.148 | 1,341 |
| New York | $0.067 | $0.023 | $0.148 | 5,265 |
| Idaho | $0.067 | $0.027 | $0.156 | 334 |
| Colorado | $0.064 | $0.022 | $0.139 | 2,235 |
| Wisconsin | $0.063 | $0.020 | $0.142 | 1,673 |
| Oregon | $0.063 | $0.020 | $0.132 | 1,149 |
| — | — | — | — | — |
| Nebraska | $0.053 | $0.017 | $0.130 | 535 |
| Utah | $0.051 | $0.018 | $0.122 | 458 |
| Kansas | $0.051 | $0.017 | $0.129 | 650 |
| Pennsylvania | $0.050 | $0.017 | $0.118 | 3,913 |
| South Carolina | $0.049 | $0.015 | $0.126 | 821 |
| North Carolina | $0.049 | $0.016 | $0.125 | 2,018 |
| Mississippi | $0.046 | $0.018 | $0.124 | 331 |
| West Virginia | $0.044 | $0.014 | $0.111 | 273 |
| Hawaii | $0.043 | $0.015 | $0.101 | 335 |
| Delaware | $0.042 | $0.012 | $0.122 | 297 |
| Alaska | $0.041 | $0.012 | $0.116 | 191 |
| Total | 26,307 |
Source: IRS Form 990 electronically filed returns, Tax year 2024. States with 100+ organizations shown. Separator divides top 10 from bottom 10 by median cost.. 22 categories shown.
Get more data →What Is Nonprofit Fundraising Efficiency?
Fundraising efficiency measures how much it costs an organization to raise each dollar of contributions.
Fundraising efficiency is calculated by dividing an organization's total fundraising expenses (Form 990 Part IX, Line 25d) by its total contributions and grants received (Form 990 Part VIII, Line 1h). The result tells you how many cents the nonprofit spent to raise each dollar. A lower cost per dollar raised generally indicates more efficient fundraising operations.
Median: $0.06 per Dollar
The typical U.S. nonprofit spends 6 cents to raise each dollar of contributions. This means 94 cents of every dollar raised is available for programs and operations. However, this median masks enormous variation across sectors and organization sizes.
Mean: $0.11 per Dollar
The mean is nearly double the median, pulled up by organizations with high fundraising costs. This right-skewed distribution means most nonprofits are quite efficient, but a significant minority spend 15-25 cents or more per dollar raised.
$13.2 Billion in Fundraising
U.S. nonprofits collectively spent $13.2 billion on fundraising in tax year 2024, raising $235.5 billion in contributions and grants. That aggregate ratio of 5.6 cents per dollar reflects the outsized efficiency of the largest organizations.
The Budget Size Effect
Larger nonprofits raise money more cheaply. Organizations with $100M+ budgets spend a median $0.035 per dollar raised — nearly half the $0.061 cost for sub-$1M organizations. Scale matters: larger donor bases, brand recognition, and institutional giving relationships reduce per-dollar fundraising costs.
Fundraising Costs by Sector: Why Some Nonprofits Spend More
Sector differences reflect fundraising models, not organizational quality.
Diseases & medical research organizations have the highest median fundraising cost at $0.09 per dollar — nearly triple that of food & agriculture organizations ($0.034). This isn't because disease charities are poorly managed. These sectors rely heavily on direct mail, events, and broad public appeals, which are inherently more expensive per dollar raised than major gifts, institutional grants, or government funding.
High-Cost Sectors
Diseases & medical ($0.09), arts & culture ($0.083), and medical research ($0.08) rely on broad public fundraising campaigns, galas, and direct mail — all of which carry higher per-dollar costs. These methods reach more small donors but cost more per dollar raised.
Low-Cost Sectors
Food & agriculture ($0.034), public safety ($0.038), and housing ($0.045) often receive substantial government grants and institutional funding that requires minimal fundraising expense. Their donor acquisition costs are lower because funding comes through established channels.
272,752 Nonprofits Report $0 Fundraising Expenses
The majority of U.S. nonprofits receiving contributions report zero fundraising expenses on their Form 990. Many small organizations rely on volunteer-driven fundraising, board solicitations, or unsolicited donations that don't incur reportable expenses. These organizations are excluded from this analysis.
Red Flags: When Fundraising Costs Are Too High
Most nonprofits are efficient fundraisers, but 13.5% spend more than $0.25 per dollar raised.
Of the 70,042 U.S. nonprofits reporting fundraising expenses, 9,433 (13.5%) spend more than 25 cents to raise each dollar. While there are legitimate reasons for high costs — new organizations building donor bases, event-heavy models, or capital campaigns — consistently high fundraising costs deserve scrutiny.
Warning Signs to Watch For
Fundraising cost above $0.25 per dollar for three or more consecutive years
Fundraising expenses growing faster than contributions received
Outsized payments to professional fundraising consultants (check Form 990 Schedule G)
Fundraising costs that exceed program expenses
Compare Within Your Peer Group
A $0.09 fundraising cost may be high for a food bank but perfectly normal for a medical research charity. Always compare against organizations of similar size, sector, and fundraising model rather than applying a universal threshold.
What Donors and Board Members Should Know
Fundraising efficiency is one signal — combine it with program spending and financial trends for the full picture.
For Donors
A nonprofit spending $0.06 per dollar raised is at the median — meaning it's more efficient than half of all organizations. Don't penalize an organization for spending $0.10-0.15 per dollar if it's in a sector that relies on broad public fundraising. Focus on whether costs are reasonable for the sector and trending in the right direction.
For Board Members
Track your fundraising cost per dollar raised over time, not just in a single year. Compare against organizations in your sector and budget tier using the tables above. If you're above the 75th percentile for your peer group, investigate whether your fundraising strategy needs adjustment.
How We Help
Our platform lets you compare your organization's fundraising efficiency against peer groups matched by budget, sector, and geography. Get benchmarks tailored to your specific situation rather than relying on national averages.
How This Data Is Calculated
Transparency in methodology builds trust.
Sample Size
68,247 organizations
Data Source
IRS Form 990 electronically filed returns
Period
Tax year 2024
Fundraising efficiency is calculated as fundraising expenses (Part IX Line 25d) divided by contributions and grants (Part VIII Line 1h). Only organizations reporting both positive fundraising expenses and positive contributions are included. Organizations where fundraising expenses exceed contributions are excluded to remove outliers (e.g., new organizations investing in fundraising infrastructure before receiving returns). Organizations with data quality flags are excluded.
Cost per Dollar Raised
We divide fundraising expenses (Form 990 Part IX, Line 25, Column D) by total contributions and grants received (Part VIII, Line 1h). The result represents the cents spent to raise each dollar. We exclude organizations where fundraising expenses exceed contributions — typically new organizations or those in capital campaign mode — to prevent outliers from skewing the benchmarks.
Why Not Total Revenue?
Some analyses use total revenue as the denominator, but this overstates efficiency by including program service revenue, investment income, and other non-fundraising-related revenue. We use contributions and grants only, which directly reflects the dollars raised through fundraising activity.
Sector Classification
Sectors are derived from the first letter of each organization's NTEE (National Taxonomy of Exempt Entities) code as recorded in the IRS Business Master File. Organizations without an NTEE code are excluded from sector-level analysis.
Data Filters
We exclude organizations with data quality flags and require processing_status = 'complete'. Only filings where both fundraising expenses and contributions are positive are included. Of approximately 342,000 organizations receiving contributions in tax year 2024, 68,247 (about 20%) report positive fundraising expenses.
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