Giving Compass' Take:
- This research article originally appeared in Center for High Impact Philanthropy and the Wharton Social Impact Initiative in 2013.
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Donors and nonprofits alike are deeply invested in creating the change they seek, as efficiently and effectively as possible.
Find additional resources of impact investing on Giving Compass
While there are multiple resources available to help donors and nonprofits measure their results and manage accordingly, it is not clear that these tools bridge the gap between the theory of impact measurement and the practice of useful data collection to improve organizational performance.
To assess common approaches and tools used in nonprofit performance measurement and highlight areas for improvement, the Center for High Impact Philanthropy (Center) and the Wharton Social Impact Initiative (WSII) conducted joint analysis to determine how practitioners and funders currently measure, respond to, and communicate results in order to maximize the social impact of their work.
First, we discuss the questions that emerged consistently as components of a measurement effort, as well as the confusion and miscommunication around donor and nonprofit roles in measurement.
Second, we address the tension and distinctions between performance management and impact assessment, an issue that surfaced as a recurring theme throughout our discussions and reading.
Third, we provide concrete action steps for donors seeking to navigate issues of measurement successfully and efficiently.
This guide is written for a donor audience because we believe our findings may be new information for many donors. Where we have gone into detail regarding nonprofit management issues, it is with an eye towards what donors need to know in order to engage with grantees more effectively.
Do not assume that an organization can conduct an impact assessment without dedicated resources. If the organization has the capacity to manage an appropriately funded impact assessment, or if they are implementing a unique or innovative model which they are best positioned to evaluate, consider supporting assessment from within the organization. If the organization is not set up to manage an impact assessment even with additional funding, or if there is a need for a broader evaluation that goes beyond a single organization’s approach, consider supporting an intermediary to conduct a sector-level evaluation.
Our hope is that this guide and the related resources will help donors and nonprofits to ask and answer the questions that really matter -- those that go beyond compliance. Only then will they able to more quickly and ef ciently move to the path of making a meaningful change in the lives of the people and communities they serve.