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\n | Is your Nonprofit impactful and healthy? 14 Metrics to Analyze | \n\n |
\n | Read time: 4 Minutes | \n\n |
\n | \n I’m a data person. \nI like to know if what I’m doing is working (or not). \nData is a solid way to assess that. \nWhen I was leading the nonprofit I started, collecting data and tracking metrics was an important part of my team’s work. \nIt provided insights into where we were crushing it, and where we needed to invest more time and resources (or, alternatively, stop doing something altogether). \nIn today’s issue of Changemaker Mondays ☀️ ☕ 🌍, let’s look at 14 metrics that can tell you a story about the health and effectiveness of your nonprofit or social impact organization’s work. \n | \n\n |
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\n | \n I’m curious how many of these you’re already tracking – or if you have others on your list I didn’t include here. Hit reply and let me know! \nI’ve broken the 14 metrics into different categories: \nFinancial Health Metrics:\n1. Diversity of Revenue Sources: Reliance on a variety of funding sources (individual donors, grants, events, etc.) reduces risk and increases stability. \nExample: We don’t receive more than half of our funding from a single source / our revenue comes from 3-4 different funding sources. 2. Fundraising Efficiency: Amount spent to raise a dollar of donation. The less you spend to raise each dollar, the more efficient your fundraising is. \nExample: It costs us 12 cents to raise $1 dollar. 3. Donor Retention Rates: What percent of your donor base is repeat donors? Acquiring new donors is often more expensive than retaining existing ones. \nExample: 75% of our donors donate for 3 years in a row or longer. 4. Total Reserve Funds: Basically, how much cash do you have in your “savings”? The amount of reserve funds indicates the organization's ability to sustain operations during financial downturns. \nExample: We have 3 months worth of funds saved in our Operating Reserve in case of emergencies. \nProgram and Impact Metrics:\n5. Program Outcomes: Outcomes are different from outputs, which measure the number of something produced (“We served 100 meals”; “We hosted 5 events”). Outcomes are the “So what?” They show the change that happened in someone’s life or in a community because of the activities or outputs. \nExample: 80% of the people we serve find affordable housing within 1 year. 6. Beneficiary Satisfaction: Are the actual people you’re serving satisfied with your services? Get feedback from those you serve through surveys or interviews. \nExample: 90% of the people we serve report feeling very satisfied with our services. 7. Program Reach: The number of people or communities served, indicating the breadth of the organization's impact. \nExample: Last year, we served 500 people, an 25% increase from the year before! 8. Stakeholder Engagement: Engagement can be an indicator of how much people understand, like, and trust your cause. Measure level of engagement from various stakeholders, including beneficiaries, donors, community members, and partners. \nExample: Over half of our donors attend our annual community meeting, showing a high level of interest and engagement in our organization / updates. \nGovernance, Staffing, and Leadership Metrics:\n9. Board Engagement: Are your board members not just attending board meetings, but speaking up, representing your cause in the community, fundraising, and making informed decisions? This is critical for good governance. \nExample: 100% of board members participate in raising money or donating money personally to the mission each year. 10. Employee Turnover: Inspiring your team and ensuring they are taken care of is good for your mission. Measuring staff turnover rate and job satisfaction (compensation, benefits, work-life balance, etc.) is at the heart of this. \nExample: The majority of your staff reports they are “Very Satisfied” with their work culture and work-life balance. 11. Compliance with Legal and Ethical Standards: Adherence to laws and ethical standards is crucial for maintaining public trust. \nExample: You receive recognition from a source like CharityNavigator or Guidestar for reporting transparently on your finances, existence of ethical policies, and more. \nGrowth and Sustainability Metrics:\n12. Year-Over-Year Growth: Social problems take time – and scale – to solve. Is your organization growing to match the size of the problem? You can measure revenue, programs, and impact to assess the organization’s development and potential for long-term sustainability. \nExample: Your annual budget or number of people served increases each year over a multi-year period. 13. Long-Term Goal Achievement: Is your organization proactive (thinking about the long term vision) or just reactive? Measure progress towards long-term strategic goals, beyond immediate program outcomes. \nExample: You finally purchased that building your nonprofit was saving up for! 14. Long-Term Community Impact: You can see that there are meaningful changes or improvements in the community or sector as a result of your nonprofit’s work. \nExample: The percent of people experiencing homelessness in our city has decreased 40% over the past 10 years as a result of our efforts. Of course, every organization has to assess which metrics to collect data and report on regularly based on its specific mission, goals, and operational context. \nWhen done well, metrics can be used to assess past performance but also, guide strategic planning for the future! \n \n | \n\n |
\n | Resource Roundup | \n\n |
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\n | \n 3 more ways I can help you\n
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I am on a mission to equip nonprofit and social impact changemakers with the tools and resources to grow their impacts. Join me and over 73,000 changemakers on my social impact-focused YouTube channel at https://www.youtube.com/ambermelaniesmith!
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