June 2009
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Requesting Performance Results Without Burdening Your Grantees

Requesting program results be measured and reported back to your foundation not only helps you understand the full value of your granting, but it also helps the nonprofit.

Nonprofits operate with the use of "gifted" funds. A gift implies a one-way transaction. In other words, the funder often writes a check and walks away... leaving the nonprofit to do the good work it said it would.

While this type of relationship is inspiring, it is not necessarily in the best interests of both parties. In fact, the party whose best interest should be first and foremost is the one in need. When work is administered on the beneficiary's behalf, but not tracked, measured or evaluated, there is no way to know how the nonprofit could be serving them better. There is no way to know how the effect of your grant could actually be doubled, tripled, or more. This is actually a disservice to all constituents: the grantor, the grantee and the end beneficiary.

While this makes a good case for requesting performance results, it still doesn't answer how you do it without burdening the nonprofits. Of course, the point here is that reporting performance results should not be seen as a burden, but as an operational necessity. Unfortunately, not all nonprofits share this view.

Here are some tips for ensuring your nonprofits can easily and quickly deliver the information you request:

1. Discuss your long-term goals with the nonprofit so they understand just how important it is that you receive performance results. Be sure to discuss how it benefits their operations and programs as well.
2. Host a workshop for your grantees to discuss capturing, measuring and communicating results to you and other grantors. Invite fellow foundations. This gives everyone a forum to discuss best practices, share ideas, and develop positive energy and camaraderie around the topic.
3. Remember that it takes time for programs to truly show impact. By staying dedicated to your grantees' performance-evaluation efforts, you can increase the likelihood that their programs will be successful in the long-term. This show of dedication is good for the entire industry.
4. Consider providing the nonprofit with technology solutions that make it easier for them to fulfill your requests. By allocating just a small fraction of your existing granting, you won't need to grant additional funds for a solution, and you also eliminate the financial barrier for the nonprofit.

Learn about what Newdea calls 1% for Transformation and how you can participate.