Here is the data
Whilst there is some variation in the data available, it is possible to tease out an answer of sorts.
At a high level Directory of Social Change notes in their 2021 publication "Fundraising Strategy" that NCVO has estimated 14% of total spending is typically on fundraising.
But in detail, the picture is complex:
NCVO data:
According to NCVO, the UK voluntary sector’s fundraising ratio in 2021/22 was 5.54. i.e. every £1 spent on fundraising generated around £5.54 in income. That translates to an average cost for raising £1 of 18p. Based on a fundraising target of £50,000, you should expect to invest around £9,000 to achieve it, if performance is in line with the national averages.
Of course, fundraising isn’t one-size-fits-all. Costs vary significantly depending on the method:
* Major donors & legacies often cost less – sometimes as low as 5p–10p per £1 raised.
* Individual giving appeals typically range between 10p–30p per £1.
* Community events or new donor acquisition can be higher, at 30p–50p per £1 or more.
Thus, to raise £50,000, actual spending could range from £5,000 to £20,000, depending on the methods used.
LarkOwl data:
LarkOwls Fundraising ROI’s 2025 report gives us valuable insights based on a sample of 62 charities:
* Overall ROI: £7.90 raised for every £1 spent (down from £8.61 in 2021).
* Small charities (<£1m income) achieved an average ROI of £11.44.
* Large charities (£1m+) averaged a lower ROI of £5.52.
By fundraising method:
* Grants – £20.36 ROI
* Major donors – £7.23 ROI
* Corporate – £5.54 ROI
* Community fundraising – £6.15 ROI
* Events – just £2.60 ROI
So what is the answer?
All sorts of other factors influence real-world ROI, including an organisation's:
* Size, age and work,
* Funding requirements (what is funding for and how quickly is it needed),
* Track record,
* Supporter base size and level of engagement,
* Availability of quality impact data.
ROI will vary significantly by organisation, BUT:
* Thinking about ROI will help boards and leadership teams set realistic expectations.
* Fundraising isn’t free, and under-investing will limit growth.
* It's important to choose the right mix. Balancing higher-cost activities (such as events) with lower-cost income streams and longer-term investments (like legacy giving) ensures sustainability.
* Efficiency is only one part of the story. Building relationships, testing new channels, and securing long-term donor loyalty are crucial, but they often require an upfront investment.
In short, fundraising, whatever your goal, isn’t just about ambition; it’s about planning and realistic investment.