Nonprofit organizations make a positive impact in communities by addressing social issues, providing essential services and advocating for change. They make a real difference in people’s lives. But how do the communities they serve really know how they are actually making a difference? Measuring program outcomes is essential to demonstrate the difference a nonprofit makes in fulfilling its mission. Communicating those outcomes and illustrating the impacts to the community are crucial to engaging the long-term support of donors, volunteers, stakeholders and the community it serves.
Measuring What Matters
Defining Success
The first step in measuring impact is to identify what “success” looks like. In the past, many non-profits focused on measuring what they were doing rather than how those activities lead to meaningful change. One way to avoid this problem is by developing a logic model that includes: inputs, activities, outputs, outcomes, and impact.
- Impacts: What measurable changes can be achieved in the long-term?
- Outcomes: What measurable changes can be achieved in the short-term? What would indicate progress toward these goals?
- Outputs: What tangibles can be measured immediately?
- Activities: What high-level steps are required to run the program?
- Inputs: What resources (staff, money, technology, etc.) do the programs require to be successful?
Once the organization’s outcomes and outputs are identified, the organization can begin to strategize questions about how to measure performance. Several strategy-based reasons to measure impact might involve refining the organization’s model or methods, making decisions about programming, or establishing a baseline to measure success. Using the framework of the logic model helps to determine which data to collect to measure impact, and which tools are required to do so.
Linking Metrics to Mission
Most nonprofit organizations track their performance by metrics such as dollars raised, membership growth, number of visitors, people served, and overhead costs. While these metrics are important, they don’t always capture the real success of an organization in achieving its mission. How have programs improved client experiences, quality of life or independence? How has the organization contributed to raising awareness and inspiring advocates to support the social issue it is trying to solve?
To effectively demonstrate impact in advancing the organization’s mission, it is essential to establish a system for collecting and measuring data. Collecting data not only is important in assessing impact, but also strengthens the organization’s ability to make data-driven decisions.
There are a variety of ways to measure impact, but some of the most common methods include:
- Quantitative data: This includes data that can be measured, such as the number of clients served, the number of jobs created, the number of donors, volunteers or social media followers.
- Qualitative data: This includes data that is more difficult to measure, such as client satisfaction, the improvement in client’s lives, or the impact on the community.
Combining both types of data can best express the significant impact an organization makes by fulfilling its mission. Collecting data to measure performance against goals allows the organization to demonstrate the value of its work, track its progress, and identify areas for improvement. With perseverance and creativity, data and tangible metrics can be linked to organizational goals.
Demonstrating Impact
Having defined “success” and gathered the data to demonstrate the organization is meeting its goals, the nonprofit is prepared to communicate its findings to the community. Showcasing the impact of a nonprofit organization’s work is crucial for maintaining transparency, attracting donors, and garnering support. By effectively demonstrating their impact in the community, non-profits can engage stakeholders, inspire trust, and secure resources to continue the mission. Key strategies that non-profits can employ to demonstrate their impact include:
- Link data to outcomes: What data can be shared that demonstrates the outcomes of the non-profit’s work? How have people’s lives been changed for the better?
- Transparency: Use clear and concise language that communicates outcomes in a way that is easy to understand and avoids confusion.
- Storytelling: Stories deeply resonate with people and are a powerful tool in demonstrating impact. Share real success stories of individuals or communities positively influenced by programs, emphasizing the personal, transformational experiences, and tangible improvements made possible by the organization. Multimedia platforms such as videos, photographs, and testimonials help to amplify the impact and engage audiences emotionally. Consider the most visually appealing and accessible formats to share data and outcomes, including infographics, charts and graphs to enable stakeholders to grasp the impact quickly, encouraging them to share the information more widely.
- Consistency: Sharing impact data on a regular basis will help to build trust with donors and stakeholders. The case statement drives all communications messaging, and should include the mission, vision and values statements, and clearly answer the who, what, and why of the organization and its fundraising efforts. The case statement outlines the impact of specific initiatives, provides insightful data, and demonstrates the responsible stewardship of resources.
- Regular communications through multiple channels: Every nonprofit organization needs a robust communications plan with defined strategies to communicate organizational impact to target audiences through multiple communications channels. Annual reports, monthly newsletters, annual appeals, and social media all provide recurring opportunities to highlight organizational successes throughout the year. In-depth case studies can provide a deep dive on specific projects or programs, sharing concrete examples and illustrating the positive change brought about by the organization.
- Collaboration with partners and stakeholders: Engage with partners, stakeholders and beneficiaries to create a collaborative approach in demonstrating impact. Working together to collect success stories, conduct surveys or develop evaluation frameworks can enhance credibility and provide diverse perspectives. Collaborations also help to build strong networks that can expand the reach of the non-profit’s work, further amplifying the impact demonstrated.
- Engage with the community: Actively engage with the community by hosting events, workshops, or town halls that bring people together to learn about organizational initiatives and witness positive outcomes first-hand. Encourage participants to share their experiences and create opportunities for dialogue and feedback.
Effectively communicating the impact of a nonprofit organization’s work is critical to building trust, attracting donors, and acquiring support. By defining success, implementing data collection and linking data to outcomes, non-profits create a case for support, creating opportunities to tell their stories, leverage partnerships, and actively engage with the community to showcase their work and inspire others to join the cause.
