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Nonprofit InsightsPart 3 Establishing Measurable Outcomes

October 16, 2019

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Presenter Dan PraterSenior Managing Consultantdprater@bkd.com

Doing good must be supported by facts

https://leadingwithtrust.com/2017/07/02/broken-trust-3-steps-to-repair-regain-the-trust-youve-lost/

The Age of Assumed Virtue Is Gone

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70%

54%

50%

Very important that organizations have evidence that its programs are effective

Expect good ratings from watchdogs

Very important that organizations spend low amount on overhead/admin

Chronicle of Philanthropy 2015

Data Influences Nonprofit Investment

In a crowded market, the public wants to supportsuccessful organizations that have sound business

practices for sustainability

• Know where they are going (vision & strategic plan)• Manage to outcomes (impact & demonstrated results)• Understand their true costs & funding needs• Know if they are making progress & how to adjust if not

This means donors want to support nonprofits that

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https://lutheranfamilyservice.org/content/uploads/2016/11/pulled-in-different-directions-700x350.jpg

• Limited available resources• Ever-increased demand for services• Growing competition (CSR,3LC)

The Problem: Our Real World

We add more programs/services,

which is subtracting from our core

• Poor fit

• Distraction

Our Response? Add & Subtract

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DOB Effect

We’re aren’t necessarily efficient or effective, we settle for just

DoingOur Best

Copyright 2017, Insight Partners Consulting, LLC

The Consequence: Limited Impact

We collect data only for reporting purposesWe collect data because the foundation won’t give us money unless we do

We collect data to help determine if our programs & services truly make a difference in our clients’ lives & in their communities

Data Collection Approach

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1. Resiliency & Flexibility

2. Culture of High Performance

3. Culture of Learning & Innovation

Are you willing to adapt to changes in consumer? Attitudes, growing competition, technology changes? What are your strategies to make this happen?

What is your organization’s capabilities for doing this?(internal & external)

How will your organization know if progress is made?Are you innovative in your problem-solving?

The New Normal for Nonprofit Groups

https://en.wikipedia.org/wiki/The_Pew_Charitable_Trustshttps:www.pinterest.com/pin/300685712598404690/?lp=true

en.wikipedia.org/wiki/File:Bill_%26_Melinda_Gates_Foundation_logo.svgz

Nation’s Largest: Shift in Funding Approach

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Limited staff time

Insufficient finances resources

Limited staff expertise

Knowing where to find external help

No support from org leadership

Funders ask for wrong data

Not having staff who believe inimportance of data collection

71%

61%

39%

29%

19%

15%

12%

SOURCE: state of evaluation.org

Only 1/3 of Nonprofits Measure Outcomes –Why?

Activity = What you do

ActivityWe feed hungry kids before school

OutcomeImproved health (not hungry)Better behaviorBetter gradesHigher graduation rate

Outcome = Result of the activity

Outcome vs. Activity

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An outcome is a promise delivered

It tells donors, community partners, volunteers, that

We told you we were going to do ...We closely monitored & evaluated the work ...We can say for sure that it worked

Your trust & investment paid off!https://www.safecorhealth.com

Outcomes

Activity Assessment- served 100 youth during camp- provided 1,500 hours of tutoring - 9 out of 10 youth attended art classes

Outcome Assessment- 75% of campers increased knowledge of local history- 50% increased math grades by one grade level- 25% fewer youth reported being bullied last year

We did these things & because

we did them

These things happened

Outcome vs. Activity

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STRATEGIES

IMPACT

GOALS

Make sure there is alignment with goals/activities & impact

Use data to make important changes to or correct their programs & services so they are the most

effective possible

Use data to tell the story of their work

Impact-Driven Organizations

Complete Timely

Reliable Accurate

Four Measures of Quality Data

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Set benchmark indicators as reference points to evaluate

progress toward reaching goals.

When it comes to determining how efficiently your organization operates, few things are as helpful as accurate, relevant performance indicators that

can show you exactly how well you’re doing

What are factors causing issue/problem?Was there a change? How much?Difference between beginning & end?

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Benchmarking Indicators: Defining Success

• What factors lead to & keep people in poverty?• What must be addressed to improve their lives?

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Example of measuring/tracking

indicators of success

Personal photo taken by Dan Prater

Example of measuring/tracking

indicators of success

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Reduce services to conduct evaluation, if that’s what it takes

Do not reduce services to conduct impact evaluation

Programs lacking hard evidence that they generate the level of change desired, must be eliminated or scaled back even if it requires serving fewer people/needs (to free up time & funds for the evaluation)

YES NO

Is it ethical to have people enroll in our programs & use our services if we are not 100% sure they

are highly effective? Or as good as they should be?

Accountability: Know if it truly has a positive impact

Learning: Determine what works/what does not

Ethics: Not measuring impact is a form of injustice

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Mission

Vision

Values

or get swept away by the forces of our sector & world

We lose sight of who we are, why we exist,what we do

Build a Firm Foundation

› What is the ultimate goal or desire?

› How does change happen?

› What part of that can we impact?

› What change are we aiming for?

› What will it take to make that change?

Theory of Change – “Change process”

Vision – “Why”

Mission – “What we do”

Outcomes – “To what degree”

Logic Model – “How”

The Path Toward Impact

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We love indicators!

Miles per gallon

Politicianapproval ratings

Amazon.comcustomer reviews

Passing yardsinterceptionscompletion rate

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We Live in a Data-Crazy Society

Do not attempt to measure

1. Things you don’t do

2. Things you don’t need to know

3. Things beyond your control

Word of Caution

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Before Program/Service After Program/serviceProgram/Service Delivered

Control group: How did those who did not receive your servicescompare to those who did receive your assistance?

Have things changed over time?

What was situation before, then what was situation after program?

Traditional Type of Evaluation

Mission Statement

is expressed as an ...

Outcome

which is expressed as an ...

Indicator

which is an

Item for a survey

From Mission to Survey Questions

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‘if-then’ relationships that express the program’s THEORY OF CHANGE

IF then IF then

If-then relationships

IF then

Theory of Change

Method Purpose

Questionnaires &surveys

Quick, easy way to gather info from people in non-threatening way.

Interviews Go deeper than surveys, learn about deeper feelings, follow up on answers to surveys

Reviewapplications/forms

Look for important or significant findings

Observations View activities as they occur

Focus groups Explore topics in-depth, get reactions & suggestions

This is an overview of major methods

Gathering Data

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The ultimate reason you should bemeasuring outcomes & effectiveness

is to better serve your clients & community

Questions?

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bkd.com | @BKDLLP @BKDNFP @BKDHigherEd @Dan_Prater

The information contained in these slides is presented by professionals for your information only & is not to be considered as legal advice. Applying specific information to your situation requires careful consideration of facts & circumstances. Consult your BKD advisor or legal counsel before acting on any matters covered

Thank you!

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bkd.com | @BKDLLP @BKDNFP @BKDHigherEd @Dan_Prater

The information contained in these slides is presented by professionals for your information only & is not to be considered as legal advice. Applying specific information to your situation requires careful consideration of facts & circumstances. Consult your BKD advisor or legal counsel before acting on any matters covered

Thank you!