Several people at the AFP conference talked to me about how cost of fundraising (or required return on investment - ROI) was a challenging obstacle for their fundraising efforts. Especially if they were a small organisation or had a challenging 'type' of cause. For example, it is easier to raise money for breast cancer than cystic fibrosis.
The state of Oregon in the USA is the latest place to totally misunderstand this concept.
Dan Pallotta tells you more here. He also puts out a useful argument to present to your board about why it is the wrong measure.
Sean