Wednesday, July 03, 2013

Using Outcomes to Measure Nonprofit Success - NPQ - Nonprofit Quarterly

Using Outcomes to Measure Nonprofit Success - NPQ - Nonprofit Quarterly: Those who donate to nonprofit organizations naturally want to feel their gifts will be used successfully in a way that will improve society or some part of it, like children, the sick, students, etc. But how can donors evaluate whether or not a charity will ultimately deliver on their promise or mission?

Success in the business world is generally measured by the amount of profit—the bottom line—that is reported in the business’s financial statements. There are other aspects that can mark a successful business: Does it treat its workers fairly? Does it protect the environment? Is its advertising truthful, and are its products or services of good quality? But failure in these aspects eventually leads to diminished profits, as workers, customers, and investors desert that business for more socially responsible companies whose products or services are of better quality.

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