Outcome Metrics for Nonprofits

By: Chelsia Low

Image courtesy of: Annie Spratt

With the current global shift towards outcomes and rise in popularity of impact investing, a key question rises in importance: how can we measure social impact? Philanthropic grant-makers seek greater clarity on program impacts and the cost-effectiveness of the organizations they donate to. Non-profit organizations need to evaluate how their programs and services have benefited the people they serve in order to improve their operations, accountability to stakeholders, and craft a compelling call for future donations. Outcome metrics are a quantifiable way of determining how an organization has performed based on the criteria they set out.

Deciding on impact metrics also heavily influences how programs are executed and the direct benefit each client receives. If a non-profit decides to measure the number of children served against the number of children that obtain higher test scores that move on to college, for instance, they might find themselves increasing client intake and potentially reduce the resources available and impact on each individual child. As an organization, decisions need to be made on which program or aspect of the program to emphasize, and outcome metrics allow these priorities to be exacted in day-to-day operations. As impact metrics serve to forward the vision and mission of the organization, they also act as guide rails to make sure the organization grows in the direction initially set and promised to stakeholders — be they donors, clients, volunteers or staff.

How can an organization set effective outcome metrics?

The Theory of Change by Sopact, an organization specializing in technology for social impact measurement, highlights a strong way to define outcome-oriented metrics. Starting backwards, organizations work to define a long-term goal (also known as outcomes) and trace backwards to list the indicators that would be observed if this goal failed. Then, activities necessary to meet the indicators are listed, followed by the resources required for the activities to occur.

In determining metrics, the non-profit organization should also ask itself key questions based on the SMART guidelines.

After key outcome metrics are clearly set out, your organization should also seek two types of data. At the beginning of monitoring, baseline data needs to be collected to understand the current situation of the target group to compare against. You can do this in a low-cost fashion through pre-program surveys, or even interviews. Another dataset to collect is benchmark data, which is how your organization compares to others across the board. this includes similar programs in different geographies, or other programs in the area with the same target group.

Good resources for benchmarking data include:

1. The General Social Survey (GSS) — Societal survey data used to capture the opinions of the U.S. populace on various national issues.
2. The Living Standards Measurement Study (LSMS) — Household data through a survey program by the World Bank’s Development Data Group
3. The Family Life Surveys (FLS) — insights on household and societal life, in countries such as such as: Bangladesh, Guatemala, Indonesia.
4. The OECD Regional Database — a database of 35 countries’ of statistics and indicators surrounding the economy and social trends
5. The OECD Metropolitan Database — indicators across various themes from economic, demographic to social, on urban regions with over half a million inhabitants
6. Other National And International Statistics Agencies

Specifically in the Bay Area, as non-profits appeal to technology corporations for donations, organizations often attach outcome metric evaluations with their final report. Boys & Girls Clubs of the Peninsula (BGCP), a non-profit that provides an after-school location for children to stay safe, sends out annual “Report to Stakeholders” with quantifiable data to showcase impact and performance of the club compared to previous years. This helps engage donors and achieve their goal, drawing them closer to the cause.

Setting up appropriate outcome metrics is crucial in providing organizations the valuable opportunity to redetermine their priorities and values, engage stakeholders, justify donations, and quantifiably guide themselves in a direction that sets them up for long-term success.