ABSTRACT
This chapter uses the theories of strategic public relations as analytical tools for examining current principles and practices of measuring fund-raising effectiveness. It reviews studies of fund-raising effectiveness that support the accepted practice of measuring effectiveness by dollars raised. In summary, charitable organizations receive gifts that have little relation to short-term efforts to raise funds. Those that report large dollar totals each year are institutions that are generally regarded as large, rich, and prestigious. B. A. Loessin et al. interjected a qualifier in their procedure for identifying peer institutions that emphasizes the need to go beyond dollar totals in measuring fund-raising effectiveness. The three methods of measuring effectiveness of fund raising by annual percentage increases of total dollars, by cost–benefit ratios, and by potential of the organization, ignore the difference between effectiveness, efficiency and ignore what the fund-raising function contributes to overall organizational effectiveness and ignore how the fund-raising process can help a charitable organization enhance and protect autonomy.
