What is nonprofit ROI? There is donor pressure on nonprofit organizations to adopt business practices, like calculating ROI.
This pressure makes sense. If you are going to ask a donor for money, and you are confident that you are spending that money for important results, you should be able to articulate strategies and measure results that prove it.
But as a nonprofit leader, don’t get trapped. While the need to be disciplined in forecasting results is the same, nonprofit ROI is very different than for profit ROI.
Here is my definition of nonprofit ROI: mission and margin.
I co-led a team that won a $5m contract with USAID to support sustainable tropical forest economies in the Maya Biosphere Reserve in northern Guatemala...