funders

New Definition of ROI for the Social Sector

During the Association of Fundraising Professionals (AFP) International Conference last week in Baltimore, the outgoing Chair of AFP offered a new definition of ROI: Results, Outcomes and Impact. While the words themselves can mean different things to different people, the message was clear. Donors want more than just a relationship with an organization and moreover, they want more than a testimonial or a picture. They want to know that their gift, or investment, has produced a tangible and meaningful result for the organization and/or its beneficiaries. This is certainly the case for more and more institutional funders, including foundations and corporations, and it is increasingly true for individual donors. 

Results,Transparency and the Realities of Present-Day Philanthropy

"We just met with a foundation the other day, and that's what piqued their interest — the outcomes. A lot of donors are saying, 'If you can't show me the difference my dollar makes, I'm probably not going to give you that next year.' " - Joshua Hale, Big Shoulders Fund Executive Director "...over the years there's been an increase in requests to understand the tangible outcomes. Now [donors] say, 'Give me a specific story, give me a quantitative result.' " - Lorrie Lynn, United Way Director of Research, Planning and Education