Outcome Metrics Have Never Been More Important to Nonprofits Than They Are Today
Nonprofit organizations are often scrutinized by their membership, boards of directors, and the donors and volunteers that are associated with the nonprofit. They may also be scrutinized by Charity Navigator, one of the premier charity evaluators, that recently added Results Reporting to their nonprofit rating system. When in the spotlight, nonprofit organizations can show strong financial and non-financial performance by using outcome metrics.
After the recent recession, many nonprofit organizations felt the same type of belt-tightening that for-profit businesses experienced. The competition grew fierce between nonprofit organizations, each competing for donor attention and financial support. Adding to the pressure, Charity Navigator is now looking deeper into nonprofit activities and it has expanded criteria beyond traditional financial reporting to include non-financial operational performance. As noted in “Outcome Metrics: Measuring What Matters in the Nonprofit World,” an eBook for you to download, Charity Navigator will begin tracking these important metrics in 2016.
A Few Advantages of Outcome Metrics for Nonprofits
Outcome metrics are used by nonprofits to capture and monitor data, then use that data to their advantage. By choosing the right set of key metrics, there are many benefits, such as being able to:
- monitor operational activities, such as membership growth or fundraising and program efficiency
- analyze those metrics to identify trends and make improvements, for example increasing membership and funding support
- improve operational activities and show the accountability and transparency that earns the trust and support of donors
To get started with developing an outcome metrics program, nonprofit organizations need to deploy a simple, yet powerful, management solution to capture data in a meaningful context and with consistency. A robust solution, such as Intacct, can manage financial transactions, membership information, fundraising and donor data, grant programs, and the many other moving parts of your organization. With all of your data within a centralized location, you can enter, access, and use it with greater efficiency and accuracy. In addition, built in reporting and business intelligence features streamline outcome metrics reporting.