non-financial performance indicators

When someone asks how your NFP is going, it’s quite likely that you will answer in terms of dollars and financial goals. It’s possible, though, that this isn’t giving a true and accurate picture of how your NFP is situated. What about your non-financial performance indicators?

As a volunteer treasurer, it’s hard to look past money for your answers, but perhaps the best response would come from a mix of financial and non-financial information. This approach is especially important when you’re dealing with a potential sponsor or donor because it allows you to give a more holistic response to their questions.

The problem with assessing things in financial terms is that it is a very self-focused approach. Your information is drawn from internal information, and doesn’t take into account what your NFP is achieving in the world.

Neither does it consider some of your more important measures of success>

Some examples could include:

  • feeding those starving people,
  • digging 12 new wells to bring water to the drought stricken regions of the world
  • adding 10 new recruits to your sports team
  • A new marketing alliance with a compatible business 

These figures are often your most persuasive when talking to potential sponsors, but they are also your reason for existing.

No matter how much money you have in the bank, if it’s not doing the job it was intended to do, your NFP can be considered a failure.

What are some of the non-financial performance indicators you can refer to in your club or NFP?