Tag Archives: impact per dollar

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.”)

Continue reading