Impact measurement and governance

As an NFP director, can you show compelling evidence of the difference your organisation makes in the lives of the people it serves? Does what you do work? How can you improve it to better deliver on your mission or purpose?

Impact measurement is fast becoming a requirement in the for-purpose sector amid increasing competition for funding and growing demands for greater transparency and accountability.

The 2022/23 NFP Governance and Performance Study showed again that many organisations are challenged on how to best measure their outcomes.

This introductory guide is a starting point for NFP boards seeking to better understand impact measurement and report more persuasively to beneficiaries, donors, communities, volunteers, employees and other stakeholders. It summarises what boards needs to know to establish a framework to manage, measure and report on the impact of their organisation.

Impact measurement enables boards to move their reporting to a more outward-facing focus including outcomes created for clients, communities and systems, instead of the conventional, inward focus on operational and financial performance.

Measuring your NFP’s impact is a crucial step towards meeting expectations among stakeholders and in the wider community for client-centric services, with quality providers using insights generated through impact measurement to deliver better client outcomes. It enables not-for-profits to know what works for whom so they can prioritise their work and manage risks.

Download the resource here.