In broadening out the scope from nonprofits to also include community based organizations (CBO's) and nongovernmental agencies (NGO's) I think there are some interested challenges.

How is the success of an organization being measured? When is it being measured? And by who (just couldn’t say "whom", sounded strange) is it being measured?

Also, who cares? And who is paying for the best practices evaluations?

Donors (I think) tend to follow along with what the orgs themselves say/claim. The orgs themselves want to highlight the best results possible and not really "open up" failings. Foundations could be interesting customers. Also, often times it is the small, grassroots, under the radar orgs making the most impact and doing the most innovative work. How do we find more of those?

How do microfinance institutions measure their success? Most often they talk about number of clients (people), number of loans, and total dollar volume of all money being loaned.

Errrr.

Okay.

But do any of those very concrete numbers measure the impact the MFI's have on helping the extreme poor build businesses that get them out of poverty? Not in my book.

On the other hand, during August, 2006 Muhammad Yunus (founder of Grameen Bank, Nobel Peace Prize winner and microfinance inventor) developed the 10 major indicators a borrower must achieve to be considered having moved out of poverty in Bangladesh.

Much more in the way of real things to measure that look to make a real difference in peoples lives.

Oh yeah. Building something in the system for people to share about their small scale failures. Not being afraid to fail (often) in small ways, but then looking into the how/why of it and sharing it for others to learn from too. Don't punish failure, encourage trying different things instead.

Measuring social improvements, particularly in individual cases rather than across broad social groupings, seems prone to all kinds of potential distortions. Even the definition of being out of poverty used by the Grameen bank could have its pitfalls:

• cultural relevance (outside Bangladesh these indicators may be less reliable)
• choice of satisfaction criterion (a blanket requirement to meet all ten indicators may be less reliable than a lower measure or using a more qualitative assessment)
• application of any measure tends to have unintended consequences (choosing loan recipients who are already closest to achieving all ten targets is likely to yield better measured outcomes than choosing those in greater poverty, even though, if chosen, the latter may actually experience greater social improvement).
• unreliable or inconsistent assessment procedures can sometimes affect outcomes more than the actual data
• the costs (all kinds) of evaluation must not be disproportionate to any benefits obtained

And so on.

But you do need to measure something if you are to satisfy those who invest in you!

There are parallels, I think, in trying to measure educational improvement.

Bob Roth said:

Good day, Nedders!

I've recently started looking into how dynamic changes in the world are impacting non-profit fund-raising: the transfer of wealth from one generation to the other, the move to online donations, the reports of poor business practices in many non-profits, etc.

The result is that a few of us are beginning to collect information about the industry that will help non-profits evaluate their success, implement strategies, and turn their online presence into a more fruitful offline result.

I'm very interested in what Ned members may think about current practices of organizations (what works/what doesn't) and how they think small to mid-sized non-profits could be more successful in fund-raising.

I appreciate your comments in advance.

(Thanks for showing me how to post a new topic, Mark!)

Sincerely, Bob

How long is a pice of string....................

Edit: How long is a pice of string....................

to How long is a piece of string....................

I think that success should be measured by how well you accomplish your goals. In the non-profit world, that may mean the ability to gather "x" dollars to purchase 1500 malaria nets or plant 500 trees. What I believe is missing is all the info needed to set challenging goals.

What we're working on for a non-profit is the ability for them to better understand their space. How many dollars are available? How can you best obtain them? What other non-profits are your competition and how are they doing better/worse?

I believe that understanding this information will help a non-profit to set better goals. Therefore success becomes similar to the rest of the business world as a measure of status against your competition.

Perhaps, we can help to raise the bar, introduce more accountability and reassure the more skeptical baby-boomers about where their philanthropic dollars are used best.

I like the idea of an online environment where small to mid-size non-profits can share their trials. Is there anything out there like that?

Bob, I think the challenge(s) here becomes getting orgs to share their results in a meaningful and open way. To open the results. To set goals that if not met could somehow reflect poorly for current donors/foundations. To get orgs to collaborate. To get orgs, who are competing for donors/grants to "open" and share their USP unique selling proposition. To create and share things that are replicable and/or scalable.

To a degree too, like in my above post, if success for microfinance is just measured by loan volume...that's probably not deep/meaningful enough information. Who decides what is measured, when and by who is the real big issue here (to me).

Gara LaMarche, president of the Atlantic Philanthropies, is offering advice to donors about how to evaluate their philanthropy.

In an opinion article in The Financial Times, Mr. LaMarche sets out guidelines for measuring charitable work.

Among his pieces of advice:

• Evaluation costs money, and donors should support charities’ efforts to examine their work.
• Avoid the evaluation “obsession” that some grant makers have embraced. “Data should never be collected for the sake of it,” he writes.
• Measurement efforts should be a learning tool for the beneficiary and the donor, “not a stick with which to beat grantees.”

“Donors successful in business want answers about impact, and while traditional philanthropy needs to help them understand the ways in which social initiatives are often quite different from profit-making ventures, it needs to be responsive to these legitimate concerns,” he writes.

Full article

In my view, there's a heck of a lot of confusion over metrics caused by 2 muddles:

be delighted with context-specific measures rather than over-attending to someone else's standards- the only standard part of governing an organsiation is making sure you have 100%+ plus casflow

be very clear that measurements through time are critical and not the same as historic numbers; that which is purposefully achiened over time can compound exponentially

any truly purposeful organisation can translate what Jim Collins calls a Big Hairy Audacious Goal - and having defined the BHAG it is simple to translate measurable goals that are keeping the organisation on track towards accomplishing its BHAG

the final piece is goodwill - this is the degree to which there are no conmflicts between coordinates of productivity and demand

chris macrae said:

any truly purposeful organisation can translate what Jim Collins calls a Big Hairy Audacious Goal - and having defined the BHAG it is simple to translate measurable goals that are keeping the organisation on track towards accomplishing its BHAG

Well said.

For me , everything translates into a rather simple equation.

Here we have a group of people with a social enterprising mind.

Some of us know each other probably for a good few years by now and have a fairly good idea how they behave in an on-line environment.

While I'm sure there's been fruitful encounters amongst us, I've a feeling we're pissing against the wind.

I'd love to see the day where we'll be able to do something precious enough to merit the things we've been speaking about.

Most of us have the financial scope to sustain ourselves, and probably see the social enterprising angle more as a kind off sideline. However, if there would be a sincere dedication (with the possibility of losing one's financial security) we would be flying, have overall a better life with a bit more laughter thrown in while giving our waistline a bteak.

Therefore-- How long is a piece of string.

Stumbled upon two new metrics based projects mentioned at Clinton Global Initiative gathering last week:

PDMS Portfolio Data Management System

ANDE Aspen Network of Development Entrepreneurs

Bob Roth said:

Good day, Nedders!

I've recently started looking into how dynamic changes in the world are impacting non-profit fund-raising: the transfer of wealth from one generation to the other, the move to online donations, the reports of poor business practices in many non-profits, etc.

The result is that a few of us are beginning to collect information about the industry that will help non-profits evaluate their success, implement strategies, and turn their online presence into a more fruitful offline result.

I'm very interested in what Ned members may think about current practices of organizations (what works/what doesn't) and how they think small to mid-sized non-profits could be more successful in fund-raising.

I appreciate your comments in advance.

(Thanks for showing me how to post a new topic, Mark!)

Sincerely, Bob

Hello Bob,

I too, have been thinking about the big changes and trends that are impacting the non profit sector. One of the most interesting and challenging is the blurring of private, public and non profits sector roles. Governments (right wing) act like businesses, business sometimes act like non profits (corporate social responsiblity) and non profits are engaging in business activity (social enterprises).

What this means for funding and fundraising is complex, but donations are costly to seek and maintain, social enterprise often higher risk (because of lack of mission fit or business skills or competition)and government support is drying up. The pressure on credit union and foundations is increasing as governments at all levels withdraw from funding social programs.

At a recent gov't / non profit sector relationship forum so many people were talking about "business case",non profit sector making a strong business case that I couldn't help flip the question to ask, can the government make a human rights case as to how it treats it's citizens? Especially its most vulnerable citizens, seniors, children, sick people including the mentally ill and addicted.

The world is changing, the non profit sector is changing and it ain't changing fast enough. I think many small and medium size non profits will have to merge, join coalitions or die. Funding and fundraising is a major challenge and online donations won't replace an personal relationship with a engaged involved donor. Or governments that recognize their responsibility to thier citizens. I live in a province that boasts, its the best place on earth. I agree, unless you are poor.

I wish I had answers but what I have is questions and opinions. Poor business practices by non profits? Hah! Most non profits are very skilled at budgeting and frugal, because they have to be.

I realize I'm rambled off topic here and hope I'm not ranting, as this is an important topic. Ellie

I like to offers some resources for this discussion. I have led a non profit for the past 18 years, so the fund raising challenges are something I deal with every day. Being an idealist, I'm trying to reverse the entire system. Instead of non profit leaders surrounding donors like fish around food, I'm trying to create a knowledge base on the internet that both donors and non profits, and other stakeholders, would use to learn more about a cause, and more about where and how they can use their time, talent and resources to help solve the problems that the non profits were created to solve.

So here are some links to illustrate this.

Maps - http://mappingforjustice.blogspo t.com shows how maps can be used to focus attention on the geography where specific types of non profits are needed. I focus on comprehensive, long-term, volunteer-based tutoring/mentoring programs, so my maps are intended to show where they are needed, based on poverty or poorly performing schools

Database - When looking a the map, you can click into a zip code map to find contact information for programs already operating, and web site links, if those programs maintain web sites. http://www.horizonmapping.net/pr ojects/tmc/tmc_gallery/Tutor_Men tor_inter_maps.html

Research on why tutor/mentor programs are needed - http://www.tutormentorconnection .org/LinksLearningNetwork/LinksL ibrary/tabid/560/rrcid/17/rrepp/ 20/Default.aspx

Research on challenges faced by non profits, along with fund raising strategies - http://www.tutormentorconnection .org/LinksLearningNetwork/LinksL ibrary/tabid/560/rrcid/8/rrepp/2 0/Default.aspx

Blogs that reflect on these topics - http://www.tutormentorconnection .org/LinksLearningNetwork/LinksL ibrary/tabid/560/rrcid/7/rrepp/2 0/Default.aspx

By aggregating this information the goal is to find groups like this who lead discussions so more people find and use the information to inform their own actions.

As members join the group, the goal is that they use the information to actually go out and be a volunteer, donor, advocate, etc. for one or more tutor/mentor programs in some location. Then they can begin to come back to the discussion with personal experiences that they can share with others in the group.

This can lead to a process of asking "what works, what does not work, and what can the group as a whole do to overcome the obstacles and maximize the opportunities"

If this type of learning circle is in hundreds of companies, churches, collages, civic/social groups, all over the world, and supported for many years, it can build a better understanding of issues and a better flow of support into the places where help is needed.

If non profits who are struggling to survive adopt some of these ideas, and learn to work with others, maybe less of them will be struggling so much some day in the future.