Accountability for performance measurement has become an important and urgent subject for nonprofit organizations as they encounter increasing competition from other agencies who are competing for scarce funding. In this article, we will take a deeper look into setting up and tracking accounting performance.
A performance measurement is a numeric analysis that indicates how well a nonprofit is achieving its objectives. These measurements can be used to examine the performance of all aspects of an organization, including the accounting, marketing, materials management, and more.
Set a primary financial goal and applicable KPIs for your nonprofit organization
First, nonprofits need to set a primary goal compared to its previous year. Achieving this goal requires implementing strategies and action plans. Key performance indicators, or KPIs, are ways to measure progress toward the implementation of the strategies and the success of each strategy. Nonprofits financial strategies can be categorized into two key areas: revenue/ donation growth and cost efficiency. [Read more…]