Success in a business is measured through profit evaluation, staff turnover rates, and customer satisfaction. However, the success of a non profit organisation can’t be analysed the same way. So, how to measure the success of a non profit organisation? Read on as we explain!
How to Measure the Success of a Non Profit Organisation: Basic Metrics Used to Measure Success
Every non profit organisation, no matter its mission or scope, needs three performance metrics to measure its success: gathering resources, employee efficiency, and progress in fulfilling its mission. The specific metrics that each non profit group adopts to assess its performance in these categories will differ. An environmental organisation might rate the performance of its staff by whether clean-air or clean-water legislation was adopted. A museum, for example, by counting how many people visited an exhibition. However, any comprehensive performance-management system must include all three types of metrics.
A non-profit establishes annual mission-critical goals and objectives, and its performance is judged by whether or not they are met. These include factors such as the number of volunteers, clients served, and funds raised, as well as reputation and credibility.
Employing Statistical Tools
A fiscal and statistical analysis of fundraising efforts and volunteer and client records provides the data necessary to determine if performance objectives have been achieved. A clear and concise survey administered to the community provides the data needed to measure the qualitative objectives. Survey content will vary from organisation to organisation since the specific questions will depend on the non profit’s mission, goals, and objectives.
Achieving a Non Profit’s Mission
In most instances, non profits have a third option for measuring their success in achieving their mission. To do this, they can develop micro-level goals that, if reached, would imply success on a grander scale. For example, suppose a non-profit provides education to underprivileged communities. In that case, it cannot measure the educational needs of the entire country. Still, it can closely examine education needs in the areas it manages. One of the benefits of this approach is that micro-level goals can be simple and straightforward.
By defining the mission to make it quantifiable, investing in research to show that specific methods work, or by developing concrete micro-level goals that imply success on a larger scale, a non profit can measure its success and progress.
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