Why is evaluation important for nonprofits?

Has anyone ever asked you, “How do you know if your nonprofit is making a difference or achieving its mission?” I’d be surprised if you hadn’t heard that question (or another version of that question) from a staff member, a board member, a volunteer, a community member, a partnering organization, a consultant, or especially from a funder or donor. All nonprofit organizations have stories they can share or short anecdotes, but to fully answer that question, organizations need to have a plan—a plan for evaluating their efforts, including inputs, processes, and outcomes. 

Nonprofits have a responsibility to the individuals and communities they serve, and responsibility to their donors and funders to be as effective as possible, and prove you are worthy of the public’s trust and dollars. Nonprofits need to be able to demonstrate that they are truly making a tangible difference and that people (or other beneficiaries, i.e., animals) are benefiting from their programs and services. Showing that your organization is achieving its mission has benefits, including helping you attract more resources, not only monetary, but talent and partnering organizations. In addition to gaining and sustaining external support, evaluation also provides the data, analysis, and strategies for your leadership and staff to improve, refine, expand, reduce, or create new programs and services. It lets your board and staff know whether goals are being met and how to improve and do even better. Evaluation can guide decision making about your budgeting, staffing, fundraising, and strategic planning, and increase your organization’s sustainability.

Evaluation lays the foundation for telling your organization’s story. Anecdotal stories serve a purpose, but they do not “prove” the organization’s relevance to the community with the same credibility that evaluation does. Evaluation is a tool for demonstrating not only accountability, but your success.

I know that hearing the word “evaluation” intimidates some, but it shouldn’t. I am not talking about scientific-rigor evaluations undertaken at academic institutions with the purpose of publication in peer-reviewed journals. I am talking about a simple evaluation process, done well, that demonstrates the effectiveness of your organization in accomplishing its mission. Yes, evaluation can be simple, BUT it does take thoughtful planning, staff or consultant time, and financial resources to do so. While evaluation will require time and money, think of these resources as investments in the continued success of your organization.

Let’s pause now and define evaluation. CDC defines evaluation as: the systematic collection of information about the activities, characteristics, and outcomes of programs to make judgements about the program, improve program effectiveness, and/or inform decisions about future program development.

Normally before beginning an evaluation, an organization will have a strategic plan that guides their work, containing explicit goals and objectives. In some cases, an organization that is going through a transition in leadership or mission might engage in evaluation to help them create their new strategic plan. Evaluation should begin with SMART goals or objectives. SMART stands for:

S – Specific: Answers the questions who & what

M – Measurable: Is it quantifiable and how will you collect it?

A – Attainable: Do you have the resources to achieve?

R – Relevant: Does this relate to your mission (the work you do)?

T – Timebound: When will it be completed?

Here are a few examples of SMART goals/objectives:

By December 31, 2023, 85% of our patients/clients will have completed an online satisfaction survey.

By June 30, 2024, youth risk behavior surveys of students in our school district will show a 15% decrease in the number of youth reporting being bullied while at school.

There are several types of evaluation that might be useful to your organization depending on what you are trying to measure/assess. The most common types of evaluation are:

Formative evaluation: This is usually conducted before a program or service is fully implemented, while it is being developed, adapted, or modified. This helps determine if a program or service is feasible.

Process evaluation: Sometimes this may be called implementation evaluation or evaluating fidelity of a program. This means you want to determine if the program or service is implemented as it was intended. This is often used with programs that are evidence-based and have specific elements that need to be implemented for it to achieve its intended results.

Outcome evaluation: This determines the effectiveness of the program or service for the targeted population, or rather, did you achieve your SMART goals/objectives. This could include changes in behavior, knowledge, attitude, etc.

Impact evaluation: This assesses effectiveness in achieving the ultimate goal or the organization’s mission.

Depending on the evaluation type, you may use a variety of methods that gather both quantitative and qualitative data, but one aspect of evaluation should ALWAYS include input from your program participants about their satisfaction or dissatisfaction with your efforts.

Qualitative information provides a description about your services, accomplishments, or actions. This can include narratives, interviews, field notes, and summaries of events. Qualitative summaries may highlight distinctions or bring attention to specific performance data.

Quantitative information is data and raw numbers. Generally, it is the most straightforward description of performance. Quantitative data portrays the actual scale of programs and services, and the impact the organization makes.

Nonprofits continue to fulfill critical needs in our society and we need to keep that message front and center. Evaluation can help do that, as well as help a nonprofit fulfill its mission more effectively. Evaluation is also important as more and more nonprofits are competing for foundation and corporate grants, as well as gifts from savvy donors. Funders want to know the impact of their contributions, and evaluation will help quantify the impact your nonprofit is making.

You don’t need to learn everything about evaluations, Nonprofit Navigators has the expertise to guide your organization to develop a strategic plan, an evaluation plan, methods for collecting data, as well as help you conduct the actual evaluation and share your results. Call us today at 303-910-9415 or Lara@NonprofitNavigators.net to schedule a meeting.

Joy Osterhout has extensive experience in strategic planning, program development and evaluation, and communications and, among many other degrees, holds a BS in Business Administration from Drexel University.