Demonstrating impact with the right not-for-profit dashboard indicator

Not-for-profit dashboards are the final component of any effort to track outcomes. After identifying what KPIs to track, and how to track them, not-for-profit dashboards offer a means to put those metrics to work on behalf of the mission, but the trick is knowing which not-for-profit dashboard indicator to display.

Two ways to think about success

Not-for-profits are successful two ways: by carrying out the mission and by funding it. The work they do needs to have a meaningful, measurable impact. Simultaneously, their fundraising and financial management needs to sustain the mission. Equally important, a not-for-profit can’t be called successful unless it excels on both these fronts:

Program outcomes

These metrics track if programs are working to carry out the mission of the not-for-profit. Some examples include:

• The number of meals served by a not-for-profit that fights hunger.
• The amount of debt reduced by a church that teaches personal finance.
• The number of books distributed by an organization that advocates literacy.
• The growth in attendance at a camp for under-served kids.
• The increase in new projects launched by any not-for-profit.

The key is to focus on metrics that relate directly to the mission - both its immediate goals and overarching objectives. Identify the work that matters most, then find out if it’s working.

Financial outcomes

These metrics track if a not-for-profit has the financial resources to sustain itself into the foreseeable future. Get a critical perspective on financial performance with metrics like these:

• Program Efficiency = Total program services expenses / total expenses
• Revenue Per Member = Member revenue / member count
• Fundraising Efficiency = Unrestricted fundraising expenses / total unrestricted contributions raised
• Working Capital Ratio = Working Capital / Average Total Expenses
• Liabilities to Assets Ratio = Total Liabilities / Total Assets