Mission-Based/Non-Financial Performance Metrics for Nonprofit Organizations

The purpose of this study is to recommend the use of mission-based metrics to assess NPO performance to complement existing accounting measures. After analyzing archival and survey data, we plan to suggest methods by which these organizations can develop such metrics, and show how such metrics can be used to better direct the organization toward its goal of serving its mission. Furthermore, we will show how these metrics can be used by NPO boards of directors to evaluate managers, pursue grants, attract donations, and recruit volunteers. We also suggest that these metrics can and should be used by the Internal Revenue Service to evaluate the efficacy of a nonprofit in the review for continuing 501(c)(3) status.