Measuring Nonprofit ROI


credit: British Council

JC Lyle writes how donations to nonprofits require a return on a community's investment, typically in dollars. Lyle has served as Wilmington Area Rebuilding Ministry's (WARM's) Executive Director since January 2009. Under her leadership, WARM's annual revenue and productivity have more than quadrupled.

Lyle observes four nonprofit investment approaches: Fixed, Fearful, Foolish, and Fruitful. She urges board members or donors of a local charity to think about the characteristics they have observed.

Lyle also points out that in the nonprofit sector, there is a second bottom line. It poses the question: How much more impact can we make?

She highlights that at WARM, their cost benefit analysis includes questions that focus on improving services through investment, serving more families, enhancing volunteer experience and being in a better position to attract and administer more funds.

Lyle encourages, "If you are not serving on a board of directors, consider reaching out to a charity you believe in."

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