How to Measure Nonprofit Effectiveness

Too many times people believe "nonprofit" equals a lack of accountability. Nonprofit companies cannot justify sloppy management or low accountability. In fact, these companies, because of their noble goals, should answer to a higher standard than the for-profit companies that have the single goal of profitability.

Instructions

1. Compare the mission statement of the nonprofit with their asset allocation to achieve those goals. Some nonprofits will have lofty mission but not allocate assets or resources to accomplish this goal. If the mission does not compliment the actions of the nonprofit, then the nonprofit may need to adjust its goals or reallocate resources to accomplish the mission.

2. Obtain a list of people or organizations the nonprofit serves. Have the nonprofit include descriptions of the services or assets used to assist each person or entity on the list.

3. Compile a number of questions that relate to the mission of the nonprofit to ask the individuals or organizations on the list. Interview the people or organizations on the list to determine if they were satisfied with the service and if allocation did indeed serve their intended purpose.

4. Measure the number of customers the nonprofit serves. This should show steady growth, given a finite pool of resources.

5. Analyze the nonprofit's plan for the future. If the goals in the plan are unrealistic, it can lead to future ineffectiveness. Make sure that its future plans match its intended purpose. Finally, use past results to alter any future ambitions if there were poor results from to a similar plan.