Tag Archives: effectiveness

Why Impact-Per-Dollar is a terrible, harmful way to measure nonprofit effectiveness

[Image description: A fluffy brown baby highland cow, with shaggy fur over their eyes. They are adorable and have nothing to do with this post. Someone just told me to look up baby highland cows and I did and found them to be so cute! This picture is from Pixabay.com, but look up “baby highland cow” on Google Images for more cuteness.”

Hi everyone. I hope you had a relaxing Thanksgiving break (if you’re in the US). I know it’s hard to get back to work after a long weekend, which is why I am here in bed eating leftover mashed potatoes and listening to early-90s Hip Hop. Just remember, though, that your work makes a difference (Read “Welcome back to work, you sexy Jedi unicorn,” if you need a quick pick-me-up)

Unfortunately, however, the difference you are making is complex, which means it is challenging to measure. And this explains the crappy metrics of effectiveness our sector has been subjected to. Chief among them, of course, is overhead rate, one of the most insipid and destructive zombie concepts ever unleashed on nonprofits, as I and others have written about repeatedly (See: “How to deal with uninformed nonprofit watchdogs around the holidays.”)

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How the concept of effectiveness has screwed nonprofits and the people we serve

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Hi everyone. Before we delve into today’s very serious topic, a quick announcement. January 12th is International Nonprofit Karaoke Throwdown Day! Here’s a blog post I wrote on why staff and boards of different nonprofits need to hang out more. Find a nonprofit or two in your area and challenge them to a #NonprofitKaraokeThrowdown. Here, I even crafted an invitation email for you:

“Hey [org(s)], Nonprofit AF has declared January 12th to be International Nonprofit Karaoke Throwdown Day, so we at [your org] challenge your staff and board to a singing contest. This is It, we’ll be Right Here Waiting for You, and Chances Are, You’re Going Down. Sorry Not Sorry.”

Now that we got that out of the way, let’s talk about effectiveness. Last week, Kathleen Enright, the CEO of Grantmakers for Effective Organizations (GEO) wrote this thought-provoking article. Here’s an excerpt:

“[The] work to define effectiveness has typically come from white organizations – prominent consulting firms, think tanks, universities, philanthropy and management support organizations. These institutions – and I count GEO among them – have advanced ideas about effectiveness that have unwittingly perpetuated or even exacerbated inequity in the nonprofit sector.”

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