Best intentions and a strong sense of purpose drive the nonprofit sector. But neither will tell you whether you’re actually making a difference.
Too many organizations measure activity—how many meals served, how many people attended, how many programs launched—without asking the harder question: has anything really changed? There’s a meaningful distinction between outputs and outcomes. Outputs are the immediate results of what you do. Outcomes are what flows from the outputs. If you want to lead effectively, you need to understand both.
Start by defining what success looks like. Not vaguely, but specifically. What would be different in your community, for your clients, if your organization truly delivered on its mission? Work backward from there. Build a plan to get you to that destination, and collect information along the way to see if you’re actually getting closer.
And then communicate what you’re learning. Share it with your staff, your board, your donors. Transparency about your impact—including where you’re falling short—builds trust and credibility. Bad news is good news if you do something about it! Funders want to see evidence, not just enthusiasm. Communities deserve to know that their investments are working.
Doing the whole job means more than just delivering programs. It means understanding whether those programs are making a difference. It means using what you learn to get better, year after year. Measure what matters. And then act on what you find.
PS: Are you looking for connection in the nonprofit world? Applied Wisdom is exploring a program to build a community for nonprofit leaders.
If you’re interested, please send me an email with the word “Community” in the subject line.