Guilty by Association

“What are the biggest issues facing nonprofits today?”

I was recently asked this question. There are many possible answers: cuts in public funding, ineffective boards, turnover in leadership. My answer was “public distrust and competing for limited resources”.

Nationwide, public distrust has been heightened by reports of fraud, abuse and other scandals. A simple Google news search of nonprofit and fraud, revealed over 12,000 results. Abrupt shutdowns and frequent turnovers in leadership perpetuate uncertainty among the general public. Even the most effective and most transparent organizations are affected when public confidence in the nonprofit sector is weakened by news reports of mismanagement and criminal behavior at other charitable organizations. Donors question if their gifts will be used as intended and the long-term health of the benefiting charity.

 

Individual, private and public donors want to see documented, measurable impact from the charities they support. Nonprofits must see their donors as investors and treat them as such by demonstrating and communicating their impact, and by making it easy for the public to access information about how donations they receive are used.

As demand for charitable services increases along with the number of charities, a nonprofit's long-term sustainability hinges on its ability to effectively compete for limited resources—securing support from various sources. As organizations experience cuts or total loss of support from public and other sources, they will seek to win the support of donors who have historically given elsewhere. Nonprofits must expand their base of individual donors while being equally dedicated to maintaining their current supporters.

Nonprofits must make relationship management a priority.

Did any of this really happen?

I  recently had someone tell me about the success of an open house she had coordinated. She told me about the large turnout of new friends and longtime supporters, and about the many opportunities the new friends presented for her organization. She was very excited and I shared in her excitement, while it lasted. Then I asked about her about her sign-in sheet. She froze and then reported to her own dismay (and mine), “We didn’t have one.”  

 

EEEK!!

 

I didn’t doubt any of what she had previously told me. But what if I had? I might have wondered, “Did any of this really happen?”

 

Anyone whose participated in my workshops or been a colleague of mine has heard me say, “If it’s not documented, it didn’t happen.”

 

I’m a do-gooder, so I get it when other do-gooders express their urgency to…

 

…feed children.

…conduct job trainings.

…recruit youth mentors.

…collect and distribute winter coats.

 

But in an effort to do good, one cannot lose sight of the importance of documentation. Like performing the charitable work, documenting is critical to a nonprofit’s success – to its ability to measure its impact and to effectively evaluate its programs and services. Documentation is a necessity when an organization is supported by a third party such as a foundation, corporate sponsor or individual donors. But don’t make satisfying donors the only reason you document.

 

Think documenting has to be difficult or complex? Here are a couple examples of simple tools nonprofits can use to document their efforts and measure their impact:

 

Sign-in Sheets – A simple piece of paper can provide you with documented proof that an event or activity occurred and the number of attendees. It can also be used to capture attendee contact information and any data you may find valuable (i.e., age, gender, referral source

 

Pre/Post-Tests – Having participants answer 5 to10 questions before and after they receive a service can help a nonprofit to effectively measure changes in participant behaviors, attitudes, and choices. These tests can also be used to evaluate the effectiveness of service delivery.

 

So document your efforts to ensure sure you never leave someone wondering, "Did any of this really happen?"