Study shows nonprofits struggling with impact measurement
| DOI | http://doi.org/10.1002/nba.30664 |
| Date | 01 October 2019 |
| Published date | 01 October 2019 |
NONPROFIT BUSINESS ADVISOR OCTOBER 2019
6© 2019 Wiley Periodicals, Inc., A Wiley Company • All rights reserved
DOI: 10.1002/nba
Nonprot Research
American donors favor causes that directly
impact their communities, study shows
Americans are most likely to donate to causes that
directly impact their friends, family and communi-
ties, as opposed to more generalized social benet
groups, according to new research from Infogroup,
a Nebraska-based provider of data and marketing
products for charities and for-prot companies.
Based on a survey of over 1,000 American adults
about their charitable practices, Infogroup found that
55% of respondents gave to causes in 2018 that im-
pacted them personally or people they know. In fact,
the company identied three tiers of giving support
among those it surveyed:
Tier 1: Our Home
• Feeding and clothing the less fortunate
• Helping animals
• Supporting research for a disease
• Providing underprivileged children resources
Tier 2: Our World
• Environmental issues
• Medical care to the less fortunate
• Helping military veterans
• Disaster relief
• Resources to the elderly
Tier 3: Special Needs
• Art and music programs for underserved
communities
• International aid
• Legal services to the needy
• Politician/political party donation
The company also found that Americans are driven to
give most when they understand the context behind the
need, making effective communication vital. According
to the report, nearly three in four Americans donated to
Study shows nonprots struggling with impact measurement
A new study conducted by Oracle NetSuite, a pro-
vider of cloud-based software for charities, shows
that nonprots continue to struggle with showing
the outcome of their work. The study, Connecting
Dollars to Outcomes, found that just 29% of non-
prots are able to effectively measure the impact
of their dollars invested in programming, despite
the widespread belief among nonprot leaders that
doing so is fundamental to their success.
The study identies several reasons why chari-
ties have such a problem connecting dollars to
outcomes. Per the report, the largest operational
challenges are a lack of people to manage measure-
ment (37%), having no system in place to measure
outcomes (30%) and data silos (27%).
However, skepticism among executive leadership
also plays a role. According to the survey, 69% of
respondents believe that outcomes measurement
mainly benets well-resourced, larger nonprots,
leaving leaders from midsize and smaller organiza-
tions wondering if the payoff justies the expense.
In addition, executives believe that outcomes mea-
surement oversimplies social issues (60%) and is
too short-term-focused (45%).
Despite this skepticism, nonprot executives say
that being able to effectively measure outcomes will
help them with top organizational priorities such
as nancial stability, staff turnover and donor re-
tention. For example, 85% of nonprot executives
believe outcomes measurement will increase fund-
raising success, 49% believe it will increase recurring
donations and 35% believe it will increase gift size.
More than half also believe outcomes measurement
will help them tap into new donor demographics,
and 42% believe it will help meet funder requests,
the report said.
Even among nonprots that are effectively mea-
suring outcomes, communicating the results can
be a challenge, the survey found. Less than 20% of
nonprots offer their donors and funders access to
real-time reports tracking outcomes and pertinent
metrics. Instead, most rely on annual reports and
semiregular email blasts to relate impact-related
data. The report suggested that platforms that al-
lowed donors to easily access up-to-date informa-
tion on impact could deepen donor engagement.
To access the study in full, visit https://bit.
ly/30HOAF8. ■
(See DONORS on page 8)
To continue reading
Request your trial