In the last decade there has been a growing interest in impact evaluation — looking at the outcomes of a program, especially in the nonprofit sector.

Program effectiveness is defined as having a positive impact on the people a program is set up to serve. And it greatly affects whether a nonprofit program is funded.

Instead of measuring program effectiveness through numbers (how many participants, how many services, etc.), the focus is on outcome. Instead of program activities, what’s important is the benefits for participants.

Why is this such a hot topic?

As funding has become more competitive and social problems have become more entrenched, funders want to invest in programs that show a significant impact on participants and on social problems.

In some cases a program is not funded or is de-funded because its impact cannot be demonstrated. With limited resources, funders want to invest in programs that will produce the most change.

Evaluation is an essential tool an organization can use to ensure program goals are reached. It also enables the program’s story to be told clearly and accurately.

Why conduct an evaluation?

An organization’s board or funders may ask for an evaluation because the information can:

• Increase knowledge of the impact.

• Increase effectiveness.

• Monitor activities.

• Determine if funds have been spent as intended.

• Understand factors that promote or limit success.

• Determine if intended audiences were reached.

• Determine future emphasis for grant awards.

• Provide input for future grant seeking decisions.

Nonprofits need to make evaluation part of the life of each program, and an ongoing part of organizational activity.

Collecting and using this information improves effectiveness by identifying program weaknesses so that corrective action can be taken. And it helps overall decisionmaking.

Types of Evaluations

Planning is a critical component of the program evaluation process. It encourages an organization to consider activities and potential outcomes. Discussion of evaluation plans provides an opportunity to clarify expectations and establish effective communication.

Conduct a front-end analysis for new or expanded programs to determine the shape and scope of the program and the resources needed. Use feasibility studies and needs assessments.

Once the program has started, the organization should perform a formative evaluation, looking for effectiveness as well as ways it can be modified and improved. Tools include client satisfaction surveys and/or focus groups.

Over the life of a program an organization also should perform an impact or “outcome” evaluation. It should look at what changed because clients interacted with the program: new knowledge, increased skills, changed attitudes, modified behavior and/or improved conditions in their lives. Tools include client surveys, pre-and post measurements and follow-up interviews.

Developing program outcomes is an organization-wide exercise. Impacts should be based upon the organization’s vision, mission and values and reflect its strategic plan.

Because it relates to the big picture, the board of directors should be involved and endorse the expected outcomes. Staff members and program participants also should be included in establishing impact.

Hot Links

• Independent Sectors Outcome Measurement in Nonprofit Organizations: www.independentsector.org/programs/research/outcomes.pdf

• Answer Center on Program Evaluation:www.delawarenonprofit.org/ProgEvalFaq.html

• Risk Management and Nonprofits: www.allianceonline.org/faqs.html

• Duties of Board Members:www.nonprofits.org/npofaq/keywords/1a.html

Ellen O’Neill is an organizational development consultant. She works with nonprofits and businesses to build their capacity through strategic planning, leadership development, evaluation and fundraising activities. She can be reached at 218-525-3547 or sleon@cpinternet.com.

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