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Over
the past two decades, researchers have made progress measuring
the size, scope, and dimensions of the nonprofit sector.
These efforts have resulted in the development of a national
classification system (e.g., the National Taxonomy for
Exempt Entities), measures of sectoral inputs (e.g., staff,
volunteers, financial resources), and indicators of organizational
outputs (e.g., program activities, persons served, units
of service delivered). The information provides key insights
and the background needed to develop a statistical portrait
of the nonprofit sector, nationally and internationally
(Hodgkinson & Weitzman, 1996; Salamon & Anheier,
1996). More recently, however, there is new interest in
measuring the benefits of the sector and the overall impact
that nonprofit organizations have on society over time.
This effort is demanding and complex, but necessary, as
the sector and its institutions will be called upon to
demonstrate their accomplishments and inherent worth in
an era of greater accountability to the public.
To date, the nonprofit sector has relied
on anecdotal evidence and general good will to argue for
its many successes and tax-exempt status. There is no
body of scholarly literature assessing the roles, functions,
and contributions of the nonprofit sector beyond evaluation
research at the institutional level. Hence, in public
deliberations, nonprofit professionals are unable to clearly
articulate the myriad activities performed by 501(c)(3)
organizations and any ensuing, greater societal good.
While both government and business have clear and consistent
bottom lines (i.e., elections and profits, respectively),
the bottom line for nonprofits is vague (i.e., the production
of collective goods that would not otherwise be provided
in society). Until we develop a useful methodology to
describe and measure the sector, we are reduced to operating
on beliefs about the value added by nonprofit organizations
as well as their contemporary roles and functions.
Many pitfalls prevent an accurate assessment
of the impacts that nonprofit organizations and the sector
as a whole have on society. Nevertheless, we are persuasively
coaxed down this research path by the guest authors of
this volume. Eighteen scholars collectively explore research
approaches, methodologies, conceptual frameworks, and
fundamental issues associated with measuring the effectiveness
of the sector and its impact on community and society.
At the heart of the exercise is a desire to gain a deeper
understanding of the uniqueness of nonprofit organizations
in improving the quality of life in communities and the
roles nonprofits play in preserving and strengthening
citizen participation in democratic societies.
THE GROWING IMPORTANCE OF MEASURING
IMPACT
The primary purpose of this 16 chapter
volume is to explore the potential to develop precise
empirical tools to measure the impact of the charitable
nonprofit sector, or specific subsectors, on society.
In the increasingly competitive world in which nonprofits
operate, there are new demands for impact analysis. Foundations
want to know whether the programs they fund are making
a difference. Private donors inquire as to how donations
serve targeted audiences. Board members ask for detailed
information on organizational activities and performance.
Attention to measurement has also become
more important among government agencies with the increased
privatization of social welfare and the devolution of
federal government decision-making powers to the states.
Following the passage of the Government Performance and
Results Act of 1993, the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996, and the Balanced
Budget Act of 1996, organizations receiving government
funds are required to conduct internal performance evaluations.
Over the past decade, performance contracting quickly
became the way local and state governments sought service
delivery. This has led to new levels of both competition
and collaboration among the three sectorsgovernment,
business and nonprofitsdepending upon the approach
of government (Egan, Cross, & Mayer, 1999; Weisbrod,
1997).
Existing measures provide a valuable statistical
profile of the size of the nonprofit sector relative to
government and commercial sectors. The nonprofit sector
represented nearly 7 percent of national income in the
United States in 1996, up from 5.5 percent in 1977. The
sector also accounted for an estimated 7 percent of total
paid employment, up from 5.3 percent in 1977. When volunteer
time is included (109 million Americans, representing
the equivalent of 9 million full-time employees), the
charitable nonprofit sector represents approximately 13
percent of total employment in the United States.
Such measures offer much better idea of
inputs to the sector rather than specific outcomes
achieved in the long-term. To be explored more fully is
the other side of the accountability ledger, capturing
the benefits that the sector produces to improve the quality
of life in communities. As discussed in the following
chapters, some outputs are available in their simplest
forms, such as the number of hospital beds filled or the
number of students enrolled. There is little evidence,
however, that organizations can reliably measure organizational
performance at the institutional level, much less at the
community and/or sectoral levels at a time when sophisticated
assessment methodologies are in demand.
Increased demand for rigorous measurement
tools is not limited to nonprofits in the United States.
With the growth of foundation-sponsored foreign aid and
the popular belief that nonprofit organizations are important
vehicles to develop democracy and to offset poverty, efforts
are being made to measure the impact of nonprofit organizations
abroad. But the data systems and empirical tools to assess
socio-economic development and democracy formation are
primitive compared to those available for assessing business
activities (Edwards & Hulme, 1996; World Bank, 1998).
Moreover, as the authors in this volume
point out, the current focus on measuring service delivery
of nonprofit organizations sometimes distracts from the
other key roles and functions of the sector such as providing
avenues for affiliation; bringing about social change,
advocacy, research, and experimentation; empowering citizens;
engaging in arts and culture; and promoting and strengthening
democracy and religious participation. The fall of Communism
has generated an interest in the power of the third sector
to offset the power of government and to empower citizen
action in Eastern Europe and other developing nations.
The term civil society, selected by Eastern European scholars
to name this third sector of organizations and associations
between government and business, has led to an explosive
amount of research worldwide. Civil society and civic
renewal have also become important topics in the United
States with an incredible outpouring of research and scholarly
disagreement, as well as citizen organization and action
around such issues as quality of life and livable communities
(Dionne, 1998; Ehrenberg, 1999; Fullinwider, 1999; OConnell,
1999; Skocpol & Fiorina, 1999).
Ultimately, the configuration of various
types of nonprofit institutions, governance, services,
and citizen participation leads to outcomes that can be
expressed as the benefits or changes brought about in
people, societies, and/or the environment. Progress is
being made toward quantifying these changes, using systemic
benchmark indicators over the past decades as noted by
Kenneth Land (Chapter 4) and most recently with the publication
of the Calvert-Henderson Quality of Life Indicators:
A New Tool For Assessing National Trends (Henderson,
Lickerman, & Flynn, 2000). But the publication of
this new volume starkly reveals (1) that social science
methodology has not advanced to the point of identifying
contributions to quality of life indicators by type of
institution and (2) the lack of reliable data series that
measure citizen contributions to society. The authors
reveal that measuring institutional contributions poses
major methodological difficulties and that basic information
needs to be collected over long periods of time in order
to test various theories about institutional or sectoral
behavior.
To honestly measure the degree to which
organizations with Section 501(c)(3) status are contributing
to the betterment of society and, hence, earning tax-free
status is a daunting task. We are persuasively coaxed
down this path by our guest authors, one of whom, Paul
DiMaggio (Chapter 16) states that "the potential
of impact analysis for enhancing the reflexivity of the
nonprofit sector, encouraging dialogue between researchers
and practitioners, and creating more sophisticated ways
of thinking about the sector and its goals strikes me
as making the quest worthwhile." David Mathews (Chapter
9) warns that "getting the results that we want in
the affairs of our communities may not be reducible to
simply promulgation standards and measuring results; it
may require a process of judging results publicly."
In other words, mechanisms need to be developed for citizens
to directly examine outcomes of their decisions to determine
whether or not these were the desired outcomes. Otherwise,
as Burt Weisbrod (Chapter 17) reminds us, "The danger
is that easily measured outputs or outcomes will be measured
while others remain unmeasured and, in effect, valued
at zero. Resources will then be misallocated, too few
going into the provision of such subtle outputs as tender
loving care in a nursing home, appreciation of art and
music, [and] education in cultural values."
LINE OF INQUIRY
The line of inquiry pursued in this volume
presumes that the sector is ready and willing to engage
in a social and economic accountability study and to make
transparent the nature of nonprofit organizations, an
honest and self-reflective exercise for those who work
in the sector. There are several inherent difficulties
in conducting performance studies. For some social scientists,
the methodological blocks are the most challenging because
there is no clear path in the extant literature on how
to measure organizational outcomes or impacts. For others,
steeped in the tradition of evaluation research, the lack
of a comparison group (or counterfactual) against which
progress can be assessed makes the research exercise uninteresting.
Still others hesitate for lack of a conceptual or theoretical
framework to approach the exercise.
Political dilemmas related to accountability
measures must also be considered when attempting such
a statistical effort. Empirical measures created to describe
the sector will be used by a variety of audiences to applaud
or to critique the sector. For example, heated debates
between the Reagan Administration and environmental groups
in the early 1980s resulted in the near abolition of certain
programs within the U.S. Environmental Protection Agency
(EPA). Environmentalists argued that without EPA data
and needs assessments, the public would be deprived of
salient information on the condition of the environment.
The Administration argued that there were other priorities
for the national budget. Recognizing that people measure
what is important to them, any and all statistical measures
can quickly become politicized.
These challenges not withstanding, we
believe that the accumulated knowledge of practitioners
and researchers provides a viable foundation on which
to begin the process of measurement. We acknowledge that
the process will be a crude beginning that necessitates
the development of a lexicon for discussing what constitutes
a "contribution," a "success," or
an "outcome" in each of the subsectors. We also
recognize that our initial efforts will require the use
of systems analysis if the aim is to move beyond measuring
immediate, linear achievements to truly delve into more
fundamental, long-term effects.
This volume explores various approaches
to measurement ranging from concrete empirical techniques
to abstract conceptual arguments on the value of measurement
to foster democracy. The insights shed light on various
types of measurement that an organization may want to
employ, such as downward performance measures (i.e., to
customers), upward performance measures (i.e., to bosses,
boards and funders), functional accountability measures
(i.e., at the individual project level), and strategic
accountability measures (i.e., for wider programmatic
goals). The authors examine the potential to measure political
objectives in a society devoted to promoting democratic
institutions, womens rights, and equal access to
services. The methodologies allow for both instrumental
rationality (i.e., "bean counting") as well
as a more systemic approach (i.e., the unbundling of information).
The depth of perception of the authors allows the creative
reader to gain insights into the subtlest facets of measurement,
such as the tender loving care provided to people, animals,
and the earth during times of need, an often unspoken
value of private charities.
The volume is also unique in that the
papers pertain both to the sector as a whole and to specific
subsectors therein, such as religious congregations, arts
organizations, and human service agencies. The ideas are
conveyed through the disciplinary lenses of political
science, economics, humanities, sociology, geography,
and journalism. Some authors are extremely pessimistic
and others quite optimistic about the potential outcomes
of such an exercise. We purposefully cast a wide net to
expand our collective horizons on the subject.
COMMON TERMINOLOGY
We learned quickly the importance of developing
a common terminology. What we thought would be simple
reference terms were actually points of departure. For
example, the term "function" has distinct meanings
for sociologists and economists. Hence, we begin by carefully
defining our terms. Like many other social scientists
in the human services subsector, we adopted a set of definitions
developed by the United Way of America to differentiate
inputs, outputs, and outcomes (Greenway, this volume,
Chapter 14; Hatry, 1999). Inputs include resources dedicated
to or consumed by the program (e.g., money, staff and
volunteer time, facilities, equipment, supplies). Outputs
are direct products of program activities, usually measured
in terms of the volume of work accomplished (e.g., number
of classes or counseling sessions, educational materials,
participants served, performances). Outputs have little
inherent value in themselves, but are expected to lead
to a desired benefit, outcome, and/or change for a target
audience. Outcomes, on the other hand, are the benefits
or changes (for individuals, populations, the earth, society)
derived from the program, activity, inputs, and/or outputs
(e.g., Are participants better off after receiving the
service? Is the river cleaner as a result of reduced production
by Company X upstream?). Outcomes may relate to behavior,
skills, knowledge, attitudes, values, condition, status,
or other attributes.
Impacts are inherently more difficult
to measure because we must first understand the causal
relationships between the measured inputs, outputs, and
outcomes and the underlying phenomena leading to the observed
results. Impact analysis helps us understand "why"
a phenomenon occurred and apportion credit or blame for
any change(s). Outcomes, in contrast, tell us "what"
has occurred. In order to measure the impact of something,
we are required to formulate a theory of behavior (e.g.,
an hypothesis) and a testable model (e.g., if A then B),
to collect reliable data, and to execute formal analysis.
One of the outcomes of this special volume on measurement
is our conclusion that the nonprofit sector is many years
away from being able to measure its impact on society.
First, we must make strides toward better measurement
of the sectors outputs and outcomes from which a
cohesive theory of behavior might emerge.
ORGANIZATION OF THE VOLUME
The authored chapters are presented in
four parts to reflect the major themes that emerged from
the conference that launched this inquiry and subsequent
research. Part II is devoted to exploring how we might
think about measuring the contributions of nonprofits
from a practical or operational perspective. Clifford
Cobb (Chapter 2) presents a conceptual model that can
be used to assess the degree to which economic and social
indicators are value neutral (i.e., mathematically elegant
or conforming to a predetermined methodology) or value
explicit (i.e., crude estimates of relevant features of
our experience). He argues that our society has opted
to establish a system of measurement that allows us to
deny warning signs of failure and perpetuates dysfunctional
and unjust systems. The charge is to develop instrumental,
quality measures of success and failure in society that
point beyond themselves and truthfully communicate our
cultural identity.
Melissa Stone and Susan Cutcher-Gershenfeld
(Chapter 3) discuss how mission vagueness, the blurring
of lines between for-profit and nonprofit organizations,
and loose coupling between donors and beneficiaries compound
the problems associated with assessing organizational
effectiveness. Measurement is complicated by the fact
that we have not reached consensus on causal models that
clarify the links between means and ends. The authors
present three conceptual models commonly used by academics
to assess organizational effectiveness (i.e., natural
systems model, goal model, and decision-process model),
which further illuminate the lack of consensus on how
to think about effectiveness, much less how to proceed
with the empirical exercise. Stone and Cutcher-Gershenfeld
present an array of examples on how nonprofit practitioners
are making headway to measure effectiveness in Minnesota,
Massachusetts, and elsewhere.
Kenneth Land (Chapter 4) embeds the exercise
of measuring the impact of the nonprofit sector into the
historical and contemporary literature on social indicators.
He provides rich evidence of both the limitations of such
measures and their potential to help illuminate the performance
of nonprofit organizations. The paper gives specific meaning
to and helpful examples of core terms of measurement.
For example, Land differentiates between objective
indicators that represent social facts independent
of personal evaluations and subjective indicators
that measure individuals experiences and evaluations.
He astutely notes that studies of objective and subjective
well-being can inform each other, whereby the domains
from the objective social indicators are used to define
the objects for subjective ratings, and measures of subjective
salience are used to develop weights and scales for objective
indicators.
Part III examines the concept of measurement
as it relates to the governance and advancement of democratic
societies. In recent decades, scholars have revisited
the role of associations and all sorts of voluntary organizations
as essential ingredients of a democratic society. In his
study of the role of government and leadership in a civil
society, Colin Campbell (Chapter 5) focuses on neo-liberalism
and its impact on social welfare in Anglo-American states.
He argues that the neo-liberal view that the role of state
should be minimal in a laissez-faire economy has led to
a crisis in leadership and a decline of the welfare state.
With the growth of inflation and declining economies during
the 1970s, citizens in Australia, New Zealand, Great Britain,
Canada, and the United States became convinced that "interventionalist"
government could not solve social problems. For Campbell,
the measure becomes the ability of leaders and legislatures
to define the appropriate role of the state. Also, the
measure of public leaders "holding the microphone
in public discourse" will determine the future of
the not-for-profit sector which could encounter impossible
burdens in a minimalist state. He argues that the role
of the independent sector rests "not in a mad dash
to catch bodies as they fall through safety nets, but
rather to contribute to maintaining a vibrant civil society."
One of the most important roles of nonprofit
organizations is to advocate causes in the public interest.
It is this role that is most identified with the contribution
of nonprofit organizations to democracy. Authors John
McCarthy and Jim Castelli (Chapter 6) argue that measuring
policy advocacy of nonprofit organizations is the major
goal of research, but much needs to be done before that
goal is achieved. Policy advocacy must be measured across
all nonprofit organizations, not simply the small group
of organizations that are called advocacy organizations.
Furthermore, advocacy efforts need to be compared with
those of business, government, and political organizations
in order to measure the particular contributions of nonprofit
organizations to policy advocacy. The authors outline
a broad research agenda for defining advocacy, identifying
direct and indirect advocacy activities, and studying
both institutions and individuals.
From the role of public leadership, Julian
Wolpert (Chapter 7) addresses the question of measuring
the impact of various types of nonprofit organizations.
He takes a broad approach by focusing on distributional
impacts, not just income redistribution. His emphasis
is on the ability to measure the "incidence of benefit,"
that is, who benefits from different types of nonprofit
organizations and how. Since the Depression, the government
rather than not-for-profit organizations has had the primary
role in income redistribution and the provision of safety
nets for the poor. Nonprofit organizations play a supplementary
role in this responsibility and, at times, are partners
with government in providing services. In the scant research
available on the beneficiaries of nonprofit organizations,
there seemed to be little redistribution.
While the measurement of inputs of nonprofit
organizations has improved over the last decade, available
data on outputs, outcomes, and impact are very primitive
or nonexistent. Wolpert argues that measuring outcomes
will become even more important in an era of government
devolution and cutbacks in funding. He also notes the
importance of trying to measure the "distinctive
and independent agenda" of nonprofit organizations
in their distributory role that is based on enrichment
of civic life, ensuring quality and variety in community
services, and responding ethically to community needs.
In the last article in this section, David
Mathews (Chapter 8) wonders whether it is possible to
"regenerate public life." Mathews presents a
paradigm of what public life looks like in order to perhaps
strengthen it. He asserts that no one knows if public
life can be renewed, but possibly his set of assumptions
built on learnings might eventually be "tested by
experience." His research reveals, for example, that
strong communities have a "civil infrastructure"
or a group of networks, associations, and organizations
that provide channels of communication and a form of public
space for deliberation among citizens. Practices that
become habits include the ability of citizens to name
problems, to make decisions together through public discussion
about how to act on these problems, to engage in public
action, and to evaluate or judge the results of the public
action. Communities with successful public lives have
different ways of using power, and these are inclusive
and lateral, not vertical. Ultimately, a community makes
decisions through public deliberation, by taking public
action, and by assuming responsibility as citizens in
judging results.
Part IV examines the concept of measurement
from the vantage of subsectors and special populations.
While citing the importance of history, sociology, political
science, and economics to womens studies, Kathleen
McCarthy (Chapter 9) argues that a multidisciplinary approach
is needed to measure womens philanthropy and its
impact on society. Research on women has shown the importance
of literacy, religion, and independent sources of income
upon the development of women and the development of societies
in which they lived or live. While she clearly finds intrinsic
value in qualitative research, she argues that an important
first step for quantitative measures is to collect statistical
data by gendered categories in studies of nonprofit organizations
and in womens giving. The impact of various special
populations is difficult to measure unless statistical
systems identify organizations, such as womens organizations,
or women separately in statistical systems of individuals.
James Connell and Adena Klem (Chapter
10) argue that traditional approaches to evaluation in
education reform efforts have done little to provide the
body of evidence necessary to assess the effectiveness,
or lack thereof, of education reform to either public
or private donors. They present a plan built on the theory
of change, a method for collecting data to evaluate whether
the implementation of steps to accomplish change is working,
and a longer term plan to document the impact of an educational
program over time on the lives of children. Measuring
outcomes and impact must be comprehensive, but uniquely
tailored to each specific change situation and within
the confines of existing institutions.
Bradford Gray (Chapter 11) discusses the
large sector of health care which is going through rapid
change both in ownership characteristics (i.e., public,
nonprofit, and for-profit) and in types of institutions
(e.g., nonprofit and for-profit health maintenance organizations
and home health agencies). He argues that although many
traditional measures are useful, such as the number of
patients served or number of beds, they do not measure
community benefit, which might provide the best approach
to distinguish between nonprofit, for-profit, and public
hospitals and their individual contributions to community.
Gray offers a broad definition of the items that might
be included in a definition of community benefit. Unfortunately,
data covering community benefit items are not widely collected,
but Gray suggests that if such data were collected, it
could help communities and local governments make better
informed decisions when organizations consider converting
to for-profit status.
Margaret Jane Wyszomirski (Chapter 12)
takes on the challenging task of evaluating what might
need to be done to measure the impact of the arts on society.
She acknowledges that impact is currently measured in
audience surveys, the number of arts agencies, level of
expenditures, etc. To better measure the impact of the
arts requires both better data collection and the development
of indexes to measure economic impact, organizational
health, educational impact, and community effect in the
art world. Wyszomirski argues that the challenges of such
measures are formidable, but the approach might help to
overcome the "virtual invisibility" of the impact
of the arts on society.
Martha Taylor Greenway (Chapter 13) surveys
the efforts of human service organizations among United
Way supported agencies to measure program outcomes. On
the basis that the fundamental purpose of the human services
sector "is to improve the condition of the people,"
she asserts that measuring the contribution of any particular
organization is "tricky" in light of the variety
of experiences, organizations, opportunities, and other
people that affect human lives. However, she also asserts
that organizations that attempt the process of assessment
have realized other benefits such as improved performance,
more motivated staff, and increased ability to recruit
volunteers. She argues that there is no real need to define
success, outcomes, and impact among agencies. Rather,
she sees a need for organizations, primarily working in
isolation, to join together to establish some comparative
measures of outcomes among similar programs for the purpose
of improvement more so than accountability or sanction.
She concludes that even though some progress is being
made to develop outcome indicators in individual agencies,
much needs to be done to bridge "the achievements
of individual programs with the outcomes that we theorize
are required for community change."
In the final article of this section,
Robert Wuthnow (Chapter 14) explores how to document the
role of religious institutions in society. While recognizing
that the Giving and Volunteering series inaugurated
by INDEPENDENT SECTOR is quite new and not adequately
analyzed, he suggests that religious institutions are
engaging in a wide range of activities not regularly charted
in existing surveys or data series. Groups engaging in
activities include interfaith coalitions, community development
partnerships bringing nonprofit and government organizations
together, and various volunteer networks. Wuthnow recommends
in-depth research at the community level in order to understand
the existing complexity of the mix of existing organizations,
affiliations, and partnerships. Only by understanding
these complex mixes can aggregate data be created based
upon a dense base of community data.
THE CHALLENGES AND OPPORTUNITIES OF
MEASURING
The final section reminds us of why it
is important to develop a research agenda and precise
empirical tools to measure the impact of the nonprofit
sector. Paul DiMaggio and Burton Weisbrod present ideas
on how to approach the exercise, some pitfalls to avoid,
and the potential rewards.
DiMaggio (Chapter 15) is cautious about
the downside of instrumental rationality, the "sacred
cow" of modern culture, which may be ill-suited to
measuring the impact of the sector in which organizational
goals are heterogeneous. Nonetheless, he finds value in
the ritual of trying to calculate the impact of nonprofit
subsectors because of its power "to bring people
together, to define identities, and to move people to
seek change . . . [through] a kind of religiously infused
social movement." Specifically, the exercise may
help the sector clarify its objectives, focus the attention
of managers and trustees on their organizations
missions, provide a nonthreatening context in which different
parts of the sector coalesce and generate new potentially
valuable research.
Weisbrod (Chapter 16) provides an insightful
overview of the need for carefully developed evaluations
of the nonprofit sector as a whole, of obstacles in the
process, and of proposed approaches. The focus of his
inquiry is the degree to which the expansion of the nonprofit
sector over the past three decades is economically efficient
and desirable. Weisbrod advises caution when attempting
to measure sectoral outputs and outcomes. The danger,
he argues, stems from the fact that nonprofit organizations
are more likely than for-profit firms to provide outputs
that are difficult to value and hence measure. A flawed
attempt at measurement would yield a systematic underestimation
of nonprofits social contributions.
Despite the difficulties, Weisbrod argues
that the exercise is critical for a number of reasons.
First, the nonprofit sector has not been granted the justification
(or status) held by privately owned, for-profit enterprises
throughout American history. Therefore, when nonprofits
clash with private firms, the nonprofit organization "is
on the defensive to demonstrate its social value."
Solid evidence that nonprofits make a difference and that
they perform economically viable functions not afforded
by private firms or government would clarify the unique
role of nonprofits in society. A second rationale stems
from the increased blurring of lines between for-profit
and nonprofit activities, which begs the question of whether
nonprofits are acting more like for-profit firms and,
thus, forfeiting their claims to special status and privilege.
Solid evidence on the contributions, successes, and uniqueness
of the nonprofit sector could help inform the ongoing
debate about the organization of society into the three
distinct sectors of government, business, and nonprofits.
CONCLUSIONS AND NEXT STEPS
The authors of this volume understand
that measuring the impact of the nonprofit sector on society
poses formidable challenges. The danger is that what can
be quantified may not be the most valuable contributions
of the sector. Furthermore, a focus on short-term, quantifiable
outputs may derail the long-term goals of an organization.
Issues of impact demand assessment over long periods of
time. For example, lowering poverty levels in low-income
communities may take multiple strategies from a host of
diverse nonprofit organizations, the business community,
and government. It will involve job skills, education,
capital investment, citizen empowerment, and participation.
While some outputs can be measured in the shorter term,
reducing poverty and rebuilding healthy communities is
a longer term investment.
If we want to know what works and what
the components of successful efforts are, we need to begin
to explore measures on several fronts, including program
outcomes at the organizational level and community studies.
Program Outcomes
Efforts need to be made to systematically assess progress
in measuring program outcomes at the organization level.
An evaluation of accumulated learning from several organizations
and foundations would be a first step in assessing the
progress, pitfalls, and potential replicability of promising
work in this area.
Community Studies
Data need to be collected at the community level based
upon sets of benchmarks and indicators that communities
believe they want to achieve. While many communities collect
data, very few if any studies collect data from the perspective
of institutional contributions across all sectors in order
to determine the unique and cumulative contributions of
various types of organizations. Furthermore, these studies
need to include the types, level, and density of citizen
participation in setting and achieving community goals.
In sum, the authors of this volume agree
that the effort to measure the impact of the nonprofit
sector is valuable even if, in a scientific sense, it
is doomed and somewhat risky because of the current inadequacy
of social science methodology to provide tools designed
to measure those qualities of the sector that add value
to society. It is abundantly clear that the real questions
that need to be addressed in long-term studies are for
the most part not addressed in current research. We have
no guiding theories from which to base assessments of
the sectors performance and/or effectiveness. Further,
experimentation in the design of sophisticated quantitative
and qualitative methodological tools to measure performance
is encouraged. Ideas about the contributions of the not-for-profit
sector are abundant, but data required to address the
power of these ideas are scant.
Meanwhile, practitioners in the field
are busy collecting measures to tell their unique stories.
In the end, we believe that the potential exists for impact
analysis to enhance the reflectiveness of the nonprofit
sector, to encourage a dialogue between researchers and
practitioners, and to create more sophisticated ways to
think about the sector and its goals. As Professor DiMaggio
reminds us, "assessing the sectors impact is,
strictly speaking, impossible. But then alchemists made
significant contributions to modern chemistry, even though
they never succeeded in turning lead into gold."
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