Let’s say we spend $250,000 to raise $1,000,000. Our cost to raise $1 is 25 cents.
Now, let’s say we spend $500,000, and because of the additional resources, we are able to raise $1,500,000. Now, our cost to raise $1 has ballooned to 33 cents and it would appear that we have become less efficient.
However, there is another analysis worth pursuing.
When we were more efficient and only spent 25 cents we ended up with $750,000 to spend on mission. On the other hand, when we were less efficient, spending 33 cents to raise $1, we ended up with a full $1,000,000 to spend on mission.
Sometimes, being more efficient doesn’t lead to better results.
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