It's Possible: Measurement for Nonprofits

“One of the great mistakes is to judge policies and programs and programs by their intentions rather than their results.” –Milton Friedman

Maintaining good relationships is critical to any organization, but these relationships take on even greater importance in the not-for-profit world. The biggest reason why these relationships matter to nonprofits is the very nature of the operation relies on goodwill and volunteerism. The foundation of the reputation is made up of these relationships and awareness of your PR and other marketing efforts. Strong communal relationships with your constituencies is the only way to keep your organization alive. This is also why continuous measurement of the nature and efficacy of your relations is so critical.

In the nonprofit sector, measurement and accountability have become more important than ever due to three reasons:

1. Social Media: Social media has brought many new ways of reaching out to your community stakeholders. Without measurement, there is no way for you to judge which will be most effective. Social groupware applications have further complicated this environment by providing nonprofits with easy no-cost or low-cost tools to create their own communities and staying in touch with their stakeholders. The good news is not only are the varieties of communities growing, but so is our ability to measure them.
2. Metrics: The difficult financial environment nonprofits face today seeing a need to act more like for-profits in terms of measurement. Increasingly, executive directors and board members are being recruited from the for-profit sector, bringing with them expectations of available metrics. Trustees are requiring detailed evaluation of programs and initiatives. There is greater competition among nonprofits for share of wallet, all of which increases pressure to measure results.
3. Accountability: Even in our financially cautious world, donors and contributors are increasingly demanding accountability for their gifts. Trustees require detailed evaluation of programs and initiatives.

          -"Measure What Matters" by Katie Paine

There is often a perception that only the biggest nonprofits have the necessary funds for the manpower of real evaluation. This is not the case. Measurement is possible for all nonprofits, big and small.