Dos and Don’ts to Show How Your Nonprofit Is Making a Difference

Impact has long been a buzzword in the nonprofit world, but many groups are still wrestling with how best to capture data that proves they’re making a difference — and share those results with donors in ways that are informative and interesting. More than 70 percent of nonprofit leaders think measuring impact is important, but only 20 percent say they’re very good at it, one survey finds.

Here are tips that can help you get started.

Define what impact means to your organization.
Nonprofits often make decisions about evaluation based on what their funders want, not what they’re trying to achieve. Before deciding what to measure, get really clear on that strategy. You also need to understand that impact is not the same thing as activities, like the number of people you reached or the amount of money you raised.

Impact reports require advance planning; allow time to lay the groundwork.
If you want to create an impact report, start planning early. Don’t worry if you don’t have every metric you want at first. You can add more later, but it’s important to start somewhere.

Don’t let the potential costs of data-tracking hold you back.
The key thing is consistency. Even if your nonprofit has never gathered data before, the sooner you can start, the better prepared you’ll be to show results in a year or two. Collect more than you think you need at first, and narrow down your metrics as you go.

Blend quantitative and qualitative data.
Numbers are crucial — but shouldn’t be the only way you communicate your nonprofit’s impact. Not everyone who reads your report will want to see just a bunch of stats and charts without qualitative context. Try to bring your data to life in a variety of ways, including quotes or testimonials that illustrate your outcomes.

Be selective and strategic about what you share.
Don’t try to share all your results. Instead, focus on the strongest ones.

Put your data in context.
When sharing a stat, think about the broader story you can tell about that number to make it more meaningful. It can help to share stats in the context of progress over time.

Don’t start over every year.
Create a report that you can update each year. Creating a storytelling foundation like this that you can build on saves a lot of time and money over the long term.

Don’t share only the good news.
More and more funders want to know about what didn’t work. If something happened that wasn’t your fault, such as Covid-19 or a well-known event in your community that affected your work, don’t ignore it and pretend everything was normal. Talk about the negative effects and how you handled them.

COP, 9-23