So how do nonprofits measure impact and communicate impact through ROI? Well, that’s better known as Return on Investment. And it’s really a hot buzzword in the nonprofit sector right now, but you really need to know what it means.
It’s not necessarily saying that for every $1 somebody donates we can turn it into $10 or $5 or whatever the multiplier is, although that’s one way that you can communicate return on investment.
Essentially, what we’re trying to do when we talk about return on investment is be able to tell someone who’s going to donate their money, how we’re going to use that money to either save taxpayer dollars, increase the amount of work that we can do that then they could potentially donate directly and do or how we’re gonna benefit their specific company.
So return on investment could be a lot of different things. And make sure you’re really clear when someone says to you that they want a return on investment, what they’re asking for.
Are they asking for how far you’re going to stretch the money, how this is going to impact their organization or how much the taxes are that are going towards this particular project? Or are they asking you to talk about a return on investment that might be something that’s just a social benefit.
So make sure you’re really clear about what return on investment means to that particular person and how your organization is communicating it. If you want to learn more about return on investment, that’s one of the areas that Sharity really specializes in.
We can have you actually sit down and look at those outcomes and figure out how you can monetize them so that you can really be telling a story that tells every single person that’s getting ready to donate, how well used their money is going to be if they give it to your organization.
We have a free webinar on the subject, but if you wanna learn more you can contact us on our website at Sharityglobal.com or just comment right here on social media and we’ll be quick to respond.
Take care.
