Promotes Impact Investing Measurement for Non-profit Organizations

May 31 23:51 2022 Promotes Impact Investing Measurement for Non-profit Organizations

Non-profit organizations often state they have met or exceeded their impact performance goals. However, have they truly done so? It’s hard for people to know where the organization is succeeding and where it is failing, as non-profits often overlook this aspect. The organization must consider impact underperformance if it is to learn and grow. Many non-profit organizations fail to take this into account, and they may lose investors. 

What is Impact Investing? 

Before a non-profit can evaluate impact investing, it must know what this is. The International Finance Corporation states that impact investing is “an approach that aims to contribute to the achievement of measured, positive social and environmental impacts.” Organizations must measure and document the impact to ensure investors understand their funds are being well spent. However, this leads to a challenge for the organizations. For more information on impact investing and what it is, discover here

The Challenge Organizations Face

An organization may spend a considerable amount of time measuring and documenting its impact. It must do so compellingly. However, the process often drains valuable resources that could benefit the organization more if used elsewhere. When doing so, they rarely report the organization is underperforming but is that truly the case? The Challenge of Measuring Impact Performance continues today, and it is time to learn why. 

Measuring Underperformance

When talking with a non-profit organization, it helps to have them report an impact success story and one where they saw room for improvement. Pay attention to what they say when providing these reports. Quantitative data that is impact-focused is cited in success stories, but not in those stories where the organization is talking about areas of improvement. This leaves one to wonder if impact metrics are being used to measure and evaluate performance. In many cases, it appears they are not, and that could harm non-profits. Investors are less likely to provide money when they don’t know that it is helping. 

How to Correct This

According to, organizations need to set targets and choose metrics to measure their progress. However, many organizations find they lack the money to set targets and measure them. That’s where programs such as Upmetrics come into play. Investors want to see how their money is being spent, and these programs allow them to have this information. Investors aren’t looking at the non-profit organization’s financial impact but whether these organizations are making a difference in the community. A program that helps non-profit organizations share this information is invaluable.

However, investors aren’t the only ones benefiting from the use of the program. Non-profit organizations find they can identify areas of underperformance so they can make changes. In addition, they can share this information with investors along with the changes they will be making. Investors appreciate knowing the organization will put in the time and effort to make improvements where needed. The non-profit organization wins when this is the case, as do those being helped by the organization. Learn more about impact performance measurement programs today to see if one is right for the organization.

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