Why, How and When to Communicate Your Nonprofit Outcomes

Why, How and When to Communicate Your Nonprofit Outcomes Main Photo

30 Oct 2023


Credibility Building

Convergent Nonprofit Solutions has successfully completed nonprofit fundraising campaigns throughout the country by focusing on outcomes, not outputs. These are two distinct concepts used to measure and communicate the impact of their programs and activities, outputs and outcomes.

Outputs are tangible activities such as the number of classes held, people housed, or children tutored, and they are usually fairly easy to count. Outcomes are the benefits that occur as a result of those outputs. For example, more classes held could result in the outcome of more people entering the workforce and filling open jobs. One good way to think about this is to consider that an output may impact only the individuals directly participating in it. An outcome may impact a much larger group of stakeholders because of the ripple effect.

Why Nonprofits Should Communicate Outcomes

'Communicating outputs is a good start and can be done regularly, but for fundraising purposes, investors want to see outcomes,' said Tom Ralser, Convergent Nonprofit Solutions Principal.

It is necessary to quantify outputs internally and with potential donors. But, donors won't 'invest' at their highest capacity if they don't understand the outcome and how it will benefit them. 'Ultimately, communicating outcomes helps nonprofits to raise more money because it personalizes what the organization is doing,' said Ralser.

Here’s an example of why this works. If a Boys & Girls Club offers after-school tutoring and mentorship for at-risk high school students, people may donate if they personally feel connected to this demographic or have a passion for helping. However, suppose that same Boys & Girls Club can demonstrate that the outcome of these programs will be students graduating and entering the workforce, contributing to the tax base, and a reduction in crime. In that case, people who never felt connected to the Boys & Girls Club's mission may feel compelled to invest because the program expansion addresses issues they care about.

How to Communicate Fundraising Outcomes

Remember that outputs are a program's immediate and measurable results, while outcomes result from those efforts. It sounds simple, but it's not. At Convergent, we help nonprofit leaders identify the outcomes investors care about and determine the best ways to communicate their success.

Here's another example. The output could be a YMCA offering 100 personal training sessions a month. The outcome could be that 90% of participants exercise and eat a healthier diet, reducing health issues across the community and employees missing fewer days from work.

When to Communicate Outcomes

Nonprofits should have a schedule in place to communicate outcomes. At Convergent, we recommend establishing a campaign website where information can be shared on a regular basis. This way, investors can check on the status of a campaign and what outcomes are being achieved at their convenience.

We also recommend sending a quarterly e-newsletter. The newsletter can highlight outputs since outcomes can take time to materialize. When there are outcomes to report, feature them prominently.

Annual events can also be an excellent way to continue engaging investors. At these events, share specific outcome examples using a combination of data-driven results and testimonials.

Uncover the Outcomes Your Investors Care About

Convergent Nonprofit Solutions can help you uncover the outcomes your investors care about. Contact us for information on conducting a feasibility study today.

About The Author

Tom Ralser, CFA's Profile Photo

Tom Ralser, CFA

Principal & Director of Asking Rights

Department: Team

“Why should I give your organization money?”

When I began in this business in 1995, this is the question I was first asked to answer. Not only was this asked in my first feasibility study by a prospective donor, but from a company perspective, it became the driving question that would allow us to become leaders in the industry.

Since then, I have strived to not only address this question but improve and refine the answer. In the early days of economic development projects, it was relatively easy to answer. Since then, I have applied my approach to answering this question to virtually every type of nonprofit. The narrower term “ROI” has given way to the broader “OVP” (Organizational Value Proposition®) which is more appropriate for social missions and my focus on outcomes delivered has led to a revolution in addressing the motivations of givers, transforming them from nominal donors to major investors.

My work is not yet done. As investors in nonprofits become more sophisticated and demanding, the bar is continually being raised. Stay tuned.

Tom has worked with organizations of all kinds, from Chambers of Commerce to religious organizations, national museums to rural health networks, and local youth organizations to international research institutes. He pioneered the concept of applying return on investment (ROI) principles to nonprofit fundraising, and fundraisers have described his work as the “silver bullet” that justifies larger investments in nonprofit organizations.

Hundreds of organizations have utilized Tom’s sustainability planning techniques to ensure they can thrive in a tight money environment. He holds the Chartered Financial Analyst (CFA) designation, which provides the framework for his Investment-Driven Model™  of fundraising, and led to the development of the Organizational Value Proposition®, which is widely used by corporations, foundations, and individuals as confirmation that the nonprofits in which they invest are truly delivering outcomes with values. His specialty of utilizing for-profit concepts and methods in the nonprofit world has helped nonprofits raise over an estimated $1.6 billion in the 22 years he has worked with them.

Tom is a frequent and highly acclaimed speaker, addressing topics about attracting new funders, outcome-based sustainability planning, and delivering value to investors.

Summary of Experience

  • Personally involved in over 600 nonprofit funding projects in all 50 states.
  • Author of the books ROI for Nonprofits: The New Key to Sustainability, Asking Rights: Why Some Nonprofits Get Funded (and some don’t), and the companion workbook, Developing Your Asking Rights.
  • Holds the Chartered Financial Analyst (CFA) designation, ranged by Economist as the “gold standard” for investment analysis.
  • Session leader and/or keynote speaker at dozens of conferences throughout the nonprofit sector and country. A sampling includes:
    • Planet Philanthropy (2016) Keynote Speaker.
    • National School Foundation Association Annual Conference (2016, 2017) Presenter.
    • Association of Healthcare Philanthropy Big Ideas Conference (2017) Presenter.
    • Council for Advancement & Support of Education’s Conference for Community College Advancement (2017) Presenter.
  • Founding Director of Western Colorado Bureau of Economic and Business Research at Colorado Mesa University, where he was a tenured professor.
  • MS in Finance from the University of Utah and BS in Marketing from Illinois State University.