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Outcomes-based Performance Measurement
by Rosemary Bayer and Lee Gorman
Did you ever sit back and ask yourself - “hmm, I wonder, with all this effort, all these programs, all this outreach, – are we actually fixing anything or truly making things better?”
Or maybe one recent day you opened your mail and found a note from one of your funders, letting you know that you need to find a clear way to tell the world what you are accomplishing.
Perhaps your organization is competing for ever-dwindling grant funding or donations, and struggling with convincing potential funders of your capabilities and effectiveness.
Our industry is moving away from reporting OUTPUT to measuring OUTCOMES — the truly significant measure of our collective efforts.
This means we want to know two things:
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What is the total impact? Are we changing behavior, making society better?
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What types of programs work best in terms of the same Outcome objectives?
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We are accustomed to soliciting funds to deliver X program to Y people, and then reporting that, yes, indeed – we did deliver that program to that many people. Good for us!
Things are shifting a bit now. We are being motivated to find out more: to measure the real impact of our work so that we can figure out what kinds of programs really solve the core problems, and then create and execute more of those!
What is our total impact over time?
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Which programs best solve the problem?
For instance, solving the problem of homelessness involves much more than providing a place to sleep. Now, in addition to how many people sleep in our shelters, we want to know how many don't need to sleep there, any more!
Almost all great programs have a similar challenge. They need to measure, and be measured on, the real change that they create, and the real goals they achieve.
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An OUTPUT is the result of a process. It is generally something you can see or count, such as how many people attended your seminar on financial management.
An OUTCOME is a level of performance or achievement, such as how many people put money in a savings account after attending that same seminar.
Just as we hear warnings about making sure our donations to help Haiti or Chile go to an organization that will actually make good and efficient use of the funds, we, too, are being pushed to prove our effectiveness by showing our overall impact.
Ultimately, we want potential donors and funders to choose us. Showing our achievements, demonstrating our effectiveness, and sharing our real outcomes will make it easier for them to select our organization for funds.
In addition to allowing you to communicate what your funders really want to know, another major benefit of doing this exercise is that you will invariably find opportunities for collaboration – another space where we are, all, being motivated to do more. As you look to deepen your solutions, you may find a need to integrate multiple programs, either within your organization or outside. Let's delve into our homelessness and shelter example.
A typical objective and measurement for a shelter program might include measuring the number of people the shelter serves within a time frame. Long term outcomes around homelessness will be oriented toward reducing homelessness, rather than counting people served. In order to really impact (reduce) homelessness and measure that impact, shelter programs are being broadened to include programs such as job training and placement, and housing or mortgage assistance. This may be done through a single organization, or may be accomplished by various organizations collaborating to provide a fuller set of services, designed overall to move people out of homelessness for good. By providing an integrated set of services like this through a collaboration of agencies, each entity can focus on delivering what it does best. Together, the group has a higher chance of succeeding overall. The true goal, reducing homelessness, becomes more attainable – and you can see your real impact on homelessness.
We are working with the Urban Institute in Washington, D.C. to help collect and share common outcomes so that ultimately, there will be a way to compare outcomes across the entire country – finding out what works in a really big way. Think of the problems we will be able to solve then!
So, it's time to go back to your goals that you worked on last month. Pull out your program objectives, and look for ways to add or start tracking Outcomes-based measures. Have patience and know you can't change everything overnight – measuring true impact can take a while! Just start now.
In our next installment, we'll give you a way to begin assessing your internal capacity and performance. This will help you get a clearer view of your current capabilities and internal processes, which will set you up for the following month, when we will discuss ways to tune up your operations!
See you next month!
Lee and Rosemary
Rosemary Bayer is Chief Inspiration Officer for ardentCause, L3C, a company dedicated to helping nonprofits increase capacity through operational performance improvement and the adroit use of technology. She has 25 years in the Information Technology industry, and excels at inspiring varied groups of people to pursue a common vision, as well as problem solving and inventing. Experienced in both for-profit and not-for-profit ventures, she was a founder of the non-profit Michigan Council of Women in Technology (now 650-plus members) and founder and president of the MCWT Foundation.
Lee Gorman, the founder of Barton Consulting Services, LLC, is an insightful, results-oriented executive with over 25 years of diverse experience in strategic planning, product planning, implementation and leadership. She has particular expertise in assisting organizations to understand and articulate their missions, visions, and values statements, and then to develop specific goals and strategic priorities. She has demonstrated this proficiency in health care, educational, automotive, and other for-profit and non-profit businesses.
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It Benefits You |
Save the Date |
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Don't Lose Your Tax-Exempt Status!
If your organization has 501(c)(3) status you must file an annual return with the IRS. In the past a small income made you exempt from this filing, but now it is important to submit a 990 form of some type. This May 15, 2010, the IRS will start revoking tax exempt status from organizations that have not filed for three consecutive years. Find FAQs and additional information.
Free tuition! Computer basics, Spanish, Tai Chi and More
If you work for a nonprofit agency in Washtenaw County you may apply for a Washtenaw Community College Nonprofit Agency Scholarship, which will reimburse the tuition for attending any of the LifeLong Learning classes shown on this page. Schedules vary, but s ome classes start as early as May 10. Check them out!
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New Detroit's Closing the Gap Awards Dinner
Tuesday, June 15, Detroit
Since the dinner's inception, they have honored 35 recipients for advancing racial progress. For more information on sponsorship opportunities and tickets, please call 313-664-2006.
United Way: Day of Action
Monday, June 21
United Ways across the country will participate in a nationwide Day of Action (formerly Day of Caring). Hundreds of volunteers from companies, organizations and the community will mobilize to serve nonprofits.
Nonprofits: Discuss your ideas for possible volunteer projects with these contacts:
United Way of Washtenaw County: Angelina Roberts Semak 734-971-8200
United Way for Southeastern Michigan: 313-226-9200
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Special Events and Announcements
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 Spring into Service - Speed Networking for Board Recruitment
Thursday, May 6th, 5:30 - 7:30pm
Kensington Court Hotel, 610 Hilton Blvd., Ann Arbor
Nonprofit organizations need talented and dedicated individuals to serve on their boards and committees and help them meet their missions. This fun and lively event takes some of the mystery out of board matching. Participants meet face-to-face with organizations in lightning rounds and learn about their missions and how they might be able to serve. An individual seeking a volunteer opportunity with a board may register online.
Washtenaw Literacy ? POWER ? Steppingstone ? School for Gifted Education ? The Bird Center of Washtenaw County ? Hands Across the Water (adoption) ? Jazzistry ? Artrain ? Ypsilanti Symphony Orchestra ? Personalized Nursing LIGHT House ? COPE Alternative Education ? Fair Housing of Washtenaw County ? Ann Arbor Autism Foundation ? Wild Swan Theater ? Ronald McDonald House ? Planned Parenthood ? ACLU -Washtenaw County
MNA SuperConference: Bringing Focus to the Future
Tuesday and Wednesday May 18-19
Lansing Center, Lansing
Along with celebrating their 20th anniversary, MNA will offer workshops on a wide array of topics designed to fit the diverse needs of conference participants. Come network with your peers, be inspired by presenters and return to work invigorated. More information and registration.
NEW Center Open House!
Friday, May 21, 3-6pm, 1100 N Main St, Ann Arbor
Join us for light refreshments and meet the tenant organizations that are making an impact.
Michigan's Voices for Volunteerism
Wednesday, May 12, 8am - 10am, Detroit
The Michigan Community Service Commission is hosting a 10-city listening tour continuing into May in several cities.. Share your thoughts on how to expand service and volunteerism to help address our state's most significant issues. Download the flyer to fax registration or register online. Location details will be emailed to you.
Michigan Nonprofit Management Manual 
It's a beauty! The 5th edition of the Michigan Nonprofit Management Manual builds on the informative chapters found in previous editions, with many new features and updates, including:
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A new chapter on Risk Management
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Alignment with MNA's Principles and Practices for Nonprofit Excellence in Michigan
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Updates on laws, regulations and filing requirements
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Expanded chapters on the use of technology
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Connections to other resources with many website references
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A revised format to help locate information quickly
Member price: $75; Non-member price: $95. Order your copy today at MNA's online bookstore.
New Tax Incentives for Nonprofits
The Michigan Nonprofit Association recently shared the following information with their members regarding new tax incentives:
Hiring Incentives to Restore Employment Act (HIRE Act) is a new $17 billion jobs package that includes temporary tax incentives to encourage employers to hire new workers. The main job-creation incentive allows most employers, including nonprofits, to keep the 6.2 percent payroll taxes on certain new hires, thus lowering their cost. This payroll tax forgiveness provision expires at the end of the year, so nonprofits will save more the sooner they hire eligible unemployed workers. More information.
Small Employer Health Credit
The new health care reform law lets smaller nonprofits claim up to a 25 percent tax credit when they pay for at least half of the health insurance premiums for their employees. To claim the credit, the nonprofit must have 25 or fewer full time employees who earn less than $50,000 in average wages and the nonprofit must pay at least 50% of the insurance premium cost for employees. Eligible nonprofits can start claiming the credit as early as their second quarter payroll tax returns. Learn more from the National Council of Nonprofits http://www.councilofnonprofits.org/public-policy/federal-policy-issues/health-care-reform/small-employer-health-credit
Sign up for regular emails from the National Council of Nonprofits.
Professional Advancement Day
Wednesday, June 3, 7:30am-4pm
The Fairlane Club, Dearborn
Cost: AFP Detroit Members $75, guests $85
The Association of Fundraising Professionals invites you to their annual day of networking and training. You'll hear from top national and regional experts about the latest tips and trends for yourself, your organization and your donors. More information and link to registration.
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Bulletin Board
The NEW Center in Ann Arbor has one work station available to rent. It comes with free broadband and options for color copier, fax, and postage machine. Tenants have access to a full kitchen, conference rooms, free parking and more! For details contact Lia Stevens (734-998-0160 x 209, email lstevens at new.org).
Reminders:
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Selected Upcoming Trainings in Southeast Michigan |
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Fundraising in a Tough Economy
Wednesday, May 5, 4:30pm - 6:30pm
Sandler Training Center, 501 Avis Drive, Ann Arbor
Free
Learn to be more effective and efficient at maintaining, seeking and gaining more donations. Seating is limited - Registration is required.
Tips for the Accidental Techie - Webinar
Tuesday, May 11, 10am-noon
Cost: $40 MNA members; $50 non-members
Are you flying by the seat of your pants and trying your best to keep your own computer system up to date? Learn how to cope in this Webinar from Michigan Nonprofit Association. More information and registration.
Starting Off Right: Board Member Orientation (Ann Arbor)
Thursday, May 13, 3pm-5pm
NEW Center, 1100 N Main St, Ann Arbor
Cost: $45 ($40 when you register online)
Concepts, methods, and case studies address the major responsibilities and duties of board service, with focus on areas of board governance, mission, life cycles, strategic planning, work styles, financial statements, fund raising and ambassadorship.
Foundation Center's Proposal Writing Seminar
Thursday, May 13, 8:30am-4pm
Farmington Community Library, 32737 W 12 Mile Rd, Farmington Hills, MI
Cost: $195. Scholarships available for small organizations
The Next Level: Using Social Media Creatively
Friday, May 14, 9am-noon
NEW Center, 1100 N Main St., Ann Arbor
Cost: $55 ($50 with online registration)
Strategies for Coalitions and Affiliated Organizations Webinar
Tuesday, May 18, 2pm-3pm
From the Alliance for Justice
Cost: $35
Learn about the different roles and functions of 501(c)(3)s, 501(c)(4)s, and PACs, and the federal rules on how these types of organizations work together. It will also examine the legal separations necessary between affiliated organizations, such as funding and fundraising constraints and permissible electoral activities. Registration.
Best Facebook Practices for Nonprofits
Thursday, May 20, 10 am - 11:30 am
Hannan House, 4750 Woodward Ave, Detroit
Cost: $40 ($35 with online registration)
Social media tools have become an essential part of the nonprofit tool-kit and Facebook has become one of the most powerful and widely-used of the social media tools available today. Around the world, millions of companies and organizations are using Facebook to find and engage with supporters. Join Linh Song, NEW's technology director, for this informative session on creative tactics for promoting your nonprofit to benefit both your mission and your bottom line.
Financial Management - Webinar
Tuesday, June 1, 9am - 12 noon
From the Michigan Nonprofit Association
Cost: $40
Fund/Revenue Development - Webinar
Thursday June 17, 1pm - 4pm
From the Michigan Nonprofit Association
Cost: $40
What constitutes a viable fund/revenue development plan. More information and registration.
Grant Management Class
Monday, June 21 - Tuesday June 22
From Grantwriting USA, hosted by Southeast Michigan Council of Governments
535 Griswold, Ste 300, Detroit
Cost: $595.00
In this class you'll learn how to administer government grants and stay in compliance with applicable rules and regulations. This training is recommended for grant recipient organizations across all disciplines. More information and registration.
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Thank you to Supporters of NEW
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Special thanks to NEW's founding partner
the McKinley Foundation
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