HOW TO ANALYZE NONPROFIT PERFORMANCE
Evaluating nonprofits requires the right questions and the right data. Analytical Overviews capture the data. Our Charity Evaluation tool provides the questions.
We want you to learn how to analyze nonprofits. Download the interactive Charity Evaluation tool below that matches the last year your charity's Analytical Overview was updated to evaluate that charity's health.
The BOLD RED words below correspond to 2012 Analytical Overview fields:
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Leadership. A contributing board, committed staff, and savvy CEO.
- Is the nonprofit CEO different than the Board Chairperson?
- Are there more than 5 Board Members?
- Is the annual Staff Turnover Rate under 25%?
- Are 2 or more weaknesses presented in the SWOT Analysis?
- Are there 2 or more Board Meetings per year?
- Are there Board Committees to focus on organizational issues?
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Leverage. Maximizes human and financial resources to serve clients.
- Does Program Expenses have a higher 3-year growth rate than Administrative Expenses?
- Does Clients Served have a higher 3-year growth rate than Staff?
- Does Clients Served have a higher 3-year growth rate than Funding?
- Does the organization leverage a good number of Volunteers?
- Is there collaboration with multiple Partner Organizations?
- Is the % of Cash Donations spent on Fundraising less than 15%?
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Financial Management. Accurate budget, low debt, and high impact.
- Has the organization ended in the black 2 out of the last 3 years (see Financial Info section)?
- Is the Total Current Debt level less than 30% of Total Income?
- Are there more than 6 months of Cash Reserves on hand?
- Does the organization pay for Annual Independent Financial Audits?
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Strategy. Well-crafted and feasible plan to execute.
- Are there specific milestones and deadlines in the 1-5 Year Plan?
- Is there a realistic Plan for growth based on past performance?
- Does the Recent Program Improvement provide a significant upgrade to operations or impact?
- Are concrete Opportunities for growth listed in the SWOT Analysis?
- Are the Areas/Countries of Operation clustered enough to enable effective oversight?
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Impact. Tracking results accurately and creating long-term change.
- Has the # of Clients Served increased during the last 3 years?
- Is the Big Organizational Goal is an attainable vision rather than a wish?
- Has the organization demonstrated a commitment to tracking and assessing Results in a transparent and dependable manner?
- Do the specific Results listed include long-term outcomes not just the number of annual activities and one-time events, actions, or decisions?
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Sustainability. Produce revenue and/or maintain diversified donor base.
- Is annual support stable because no single donor accounts for over 15% of annual expenses (see Number of Donors by Gift Size Last FY)?
- Has Funding increased during the last 3 years?
- Is the Budget % Funded by the Board greater than 1%?
- Does the Donor Retention Rate exceed the average of 55%?
- Has the number of annual Donors increased in the last 3 years?
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