The Organizational Value Proposition®, or OVP, is a concept developed by Convergent principal Tom Ralser. The term describes the nonprofit equivalent of return on investment (ROI).
ROI in the nonprofit world is often mistakenly used to describe the costs of fundraising compared to the amount of dollars raised. OVP embodies the true investment concept of ROI, but is based on the broader mission of the nonprofit organization.
OVP is designed to answer tough questions for potential funders such as these:
- Why should I invest in your organization?
- What does your organization accomplish?
- How will my company benefit?
- Can you quantify the impact you have?
- Will my investment allow your organization to build capacity?
OVP is used when nonprofits realize the need to demonstrate that they make a difference. This realization usually occurs when funding is needed. Whether the source of that money is a fundraising campaign, a foundation grant, or a targeted private solicitation, the rigorous process of OVP ensures that all of the tough questions are answered, the benefits are demonstrated, and the case for investment is clear.
Organizational Value Proposition® is a registered trademark of Capital Strategists Group, one of the five firms that make up Convergent Nonprofit Solutions.
|
| |
This organization started a grassroots health insurance program that allowed the uninsured to have a medical home and a relationship with a physician rather than the emergency room. They had many groups at the table, from hospitals to physicians to city governments, and needed an outside perspective on the value of the program. An Organizational Value Proposition® provided the objective evidence that the program, through cost effectiveness, less time off from work, and quality of life enhancements, provided a 10 to 1 return for its members.
|
| |
|
