Why is outcomes measurement important for non-profit organizations and grantees?
A. Outcomes measurement is important for NPO’s and grantees because the services or products of NPO’s are generally not market-driven, but closer to public goods, and therefore many of their outcomes are not easily quantified. However, foundation and government funding sources, as well as private donors, increasingly expect NPO’s to demonstrate their effectiveness. Having outcome data improves an organization’s capacity to fundraise and advocate on behalf of its mission and clients. For example, with outcome measures, an organization can present evidence to policy makers that indicates a need for new programs or funding. Measuring outcomes also provides a gauge to guide management, motivate staff, and focus the program’s mission. According to Sharon Oster, non-profit management scholar, “Evaluation is central to the continued ability of non-profits to innovate, adapt and use scarce resources well in serving their missions.
