How to measure return on investment (ROI)
Increasingly, cultural organisations and commercial sponsors are evaluating the impact of their partnerships – the return on investment. This factsheet explains the indicators – the outputs, outcomes and impacts that can be measured and evaluated during the life of a sponsorship partnership. It includes four case studies in different sectors of the arts.
The indicators have been structured in a framework which can serve as a ‘road map’ for partnerships. Initially looking at the financial and monetary function within the partnership, focusing then on the leverage this has generated and what has been activated as a result of the partnership (i.e. evaluation of the partnership activity itself). Therefore, financial and activation indicators need to be measured before (in order to benchmark change) and during/immediate after the partnership.