Here are some examples of how nonprofits can use the four metrics discussed in the last post to measure their ROI.
For example, a nonprofit that is running a fundraising campaign can use the Return on (Time) Investment metric to calculate how much income they generate per hour of staff time spent on the campaign. This can help them compare the efficiency and effectiveness of different fundraising methods, such as phone calls, direct mail, events, or online donations.
Another example is a nonprofit that is considering a new partnership or collaboration with another organization. They can use the Return on Identity metric to assess how well the partnership aligns with their core purpose and expertise. This can help them avoid confusing or diluting their brand and value proposition, and instead focus on opportunities that reinforce their identity and niche.
A third example is a nonprofit that is launching a new program or service for their community. They can use the Return on Improvement metric to measure the learning and growth opportunities that come from trying something new. This can help them develop new skills, knowledge, or capabilities that can improve their future performance and impact.
A fourth example is a nonprofit that is engaging in advocacy or public education activities. They can use the Return on Integrity & Influence metric to gauge the impact of their activities on their internal and external relationships. This can help them build trust, equity, and collaboration with others, and improve their ability to advocate for their community.
These are just some examples of how nonprofits can use these metrics to measure their ROI. Of course, there are many other ways to apply them depending on the context and goals of each organization.
We hope this helps you understand how metrics can be useful for your work. Contact Capacity Builders - we can help you establish overall organizational effectiveness.
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