Making the Most of Your FSP Investment
A fundraising service provider can be a huge asset to your nonprofit, but understanding pricing, services, capabilities and limitations is essential.
- $100 printer invoice + 15 percent markup = $115 billed to NPO
- FSP pays $100 to printer, keeps $15. That means it earns $15 on a $115 invoice.
- $15 is 13 percent of $115, meaning the FSP’s profit margin is only 13 percent, not 15 percent.
So, instead of adding 15 percent to the invoice, the FSP adds 17.65 percent. Here’s why:
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Pamela Barden is an independent fundraising consultant focused on direct response. You can read more of her fundraising columns here.
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