Whether your nonprofit engages in formal “evaluation,” monitors progress towards specific goals, or uses feedback loops to learn what's working and what's not, each of these activities is a type of “performance measurement.” What makes the most sense for your nonprofit? Evaluating Performance, Measuring Outcomes Identifying and communicating impact are also important activities for any charitable nonprofit since donors understandably want to know that their contributions are making a positive difference. Your nonprofit will only know that it is indeed helping individuals, solving problems in communities, protecting the environment,, if it is evaluating its performance. The authors go on to stress that in an environment of increasingly limited resources, those nonprofits that can demonstrate that they are truly making an impact will be the ones most likely to attract resources and talent, and therefore be most sustainable.Īs Leap of Reason points out, measuring outcomes is not just about attracting resources to your nonprofit it's about the mission. If you are just becoming familiar with this topic we recommend a powerful and easy-to-read book, Leap of Reason, that explains how nonprofits and grantmakers (and governments) have a responsibility to the individuals and communities we all serve to be as effective as possible. All of this is referred to variously as, "outcomes measurement," "performance management," or simply, "evaluation." This requires first identifying "what does success look like?" Then, you need to make a plan that will get you there and collect information along the way to evaluate whether your nonprofit is actually getting closer to success.įinally, it's important also to communicate what you are discovering, and use those lessons to continuously improve performance. The National Council of Nonprofits and its state association network encourage nonprofits to embrace a culture that supports evaluating the difference your nonprofit is making. More and more nonprofits, grantmakers, and government partners are focusing on outcomes, rather than "outputs." Impact is the difference your nonprofit makes: There's the work you do, and the results that flow from it. How do you know if your nonprofit is making a difference?
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