Measuring performance of non-profit organisations: evidence from large charities (original) (raw)
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2015
How to measure performance in charitable organisations continues to excite interest among academics and practitioners. Despite the intellectual interest, little consensus has emerged as to what are the best measures of performance in charities. This is against the backdrop of an increased demand by donors and other stakeholders on charities to provide information on their performance. Building on prior studies, this paper examines the measures of performance in charities using a hybrid methodological approach which consists of 14 exploratory interviews and a quantitative survey of 105 CEOs / board of trustees of British large charities. Our results of factor analysis and internal reliability produced five broad measures of performance of charities: i) financial measures, ii) client satisfaction; iii) management effectiveness; iv) stakeholder involvement and v) benchmarking indicating that the overall performance of charity is best measured by a set of factors which reflect the multi...
Multi-dimensional performance measurement framework for nonprofit organisations
2019
Performance measurement is one of the major topics that can be linked to the improvement in performance management and managerial effectiveness in an organisation. It can be defined as the accomplishment of a given organisational task which involves studying a process or strategy. A non-profit organisation (NPO) is an effective change agent in socio-economic sectors and international development. Performance measurement becomes one of the vital elements in NPOs since the funding comes from various sources and there is an urgency to show the effectiveness of NPOs through performance measurement. However, even there is a clear pathway for NPOs to contribute to the well being of the society as outlines by the National Integrity Plan, there is still a lot of lacking factors to evaluate their performance which lead to the effectiveness of the organisation. This study investigates the lacking indicator and additional enabling factors and variables that could strengthen the measurement too...
Accountability, governance and performance in UK charities
International Journal of Business Performance Management, 2018
The aim of this paper is to analyse the relationship between governance characteristics of a sample of 200 UK non-profit organisations (NPOs) and their performance, considered as their ability to collect financial resources. Using a regression analysis, we verify strong positive relationships between the NPOs' financial performance and CEO duality and board size. Further analyses show that if the charities increase their level of accountability through the use of additional voluntary disclosure mechanisms and tools such as the use of social networks, these relationships are confirmed. The results of our research have implications for policy makers that seek to strengthen governance of NPOs, and for boards and managers of NPOs who wish to develop their organisations' performance.
Developing a Conceptual Model for Measuring Performance of Australasian Nonprofit Sector
Measurement of strategic performance is important to any organisation, irrespective of the sector to which the organisation belongs. The nonprofit sector is a growth sector in Australasia. With the growth in the sector comes increased pressure from different stakeholders for better management of nonprofit organisations to improve their performance. This paper explains the development of a conceptual model that is primarily grounded on a performance measurement (PM) model known as the balanced score card (BSC)—a widely accepted PM model by the for-profit sector. The work reported in this paper cover the initial phase of a larger project on operationalising the BSC to the Australian and New Zealand nonprofit healthcare organisations.
2020
BackgroundNon acute health charities form part of the global health services industry yet face concerns regarding performance and accountability. Organisational performance measurement (OPM) is enables performance however is under utilised in the non acute health charity sector. The Non-acute Health Charity Performance Implementation Framework (NCPI Framework) was developed to support OPM implementation in non acute health charities. The study goal was to assess whether NCPI Framework implementation could positively impact on the introduction of OPM to case study organisation. The hypothesis was that NCPI Framework implementation would positively impact on the introduction of OPM in a non acute health charity.MethodsA convergent parallel design mixed methods case study evaluation was conducted of the twelve-month implementation of the NCPI Framework in a non acute health charity. Pre and post survey quantitative and qualitative techniques were used to assess the infrastructure and s...
Frontiers in Psychology, 2020
Performance measurement systems (PMS) in Non-profit Organizations (NPOs) are more complex than in for-profit organizations. NPOs have an orientation toward social mission and values, and they consider not only organizational efficiency and viability, but also the social impact of the organization. This research provides a comprehensive synthesis of PMSs in NPOs. Design/Methodology/Approach: Using a literature review, supported by bibliometric and network analyses. A paper set of 240 articles related to this research field is examined. Topics that are the most prevalent in this research area and their interrelationships are identified, presenting an outline of current efforts. Findings: Despite the descriptive analyses for the paper set, a framework is proposed for organizing the design-implementation factors of PMSs in non-profit organizations, identifying the main requirements for their successful development. Originality/Value: Investigation on performance measurement in non-profit organizations is still in its early stages of development with many opportunities to further develop the field. Conceptual frameworks and models, as well as specific theories, are being generated for this field of research, and the process of adapting models from the general field of performance measurement is taking place. The meta-framework that organizes the main research topics of PMS in non-profit organizations and the framework that consolidates factors that influence the design-implementation of PMSs in non-profit organizations developed represents this paper contribution.
Nonprofit Management and Leadership, 2003
Consensus about financial performance measurement remains elusive for nonprofit organization (NPO) researchers and practitioners alike, due in part to an overall lack of empirical tests of existing and new measures. The purpose of the current study was to explore potential similarities of financial performance measures derived from two sources: current NPO research and key informant interviews with NPO foundation constituencies. The authors examined financial performance measurement ratios with data from fifteen Internal Revenue Service (IRS) Form 990 line items. Using factor analytic techniques, they found three performance factors, each with two associated financial measurement ratios, to be present. They categorized the performance factors as fundraising efficiency, public support, and fiscal performance. This article discusses implications of the findings and future research. N ONPROFIT ORGANIZATIONS (NPOs) provide important services throughout the United States and beyond, but the degree to which such organizations are effective remains a much-
Seven trade-offs in measuring nonprofit performance and effectiveness
2014
To complement contemporary nonprofit literature, which mainly offers theory-driven recommendations for measuring nonprofit effectiveness, performance, or related concepts; this article presents seven trade-offs for researchers and practitioners to consider before engaging in a nonprofit effectiveness measurement project. For each trade-off, we offer examples and suggestions to clarify the advantages and disadvantages of methodological choices that take various contextual elements into account. In particular, we address the differences between formative and reflective approaches, as well as the differences between unit of interest, unit of data collection, and unit of analysis. These topics require more in-depth attention in the nonprofit effectiveness literature to avoid misinterpretations and measurement biases. Finally, this article concludes with five avenues for further research to help address key challenges that remain in this research area.
Identification and measurement of social impact in non profit organizations
Third International Conference on Advances in Management, Economics and Social Science - MES 2015, 2015
Measuring outputs, outcomes and impacts are a major challenge for nonprofits. How can donors and investors know whether they are helping or undermining the development towards a healthy and sustainable society and environment? Nonprofits have developed a wide range of approaches, tools and methods to measure their social impact. An overview of them, underlining their advantages and drawbacks, is showed in this paper in order to identify those which better disclose social performance. In addition, a twotier disclosure framework (low and upper) is proposed along with disclosure of segment reporting.