Organizational Value Proposition
The Organizational Value Proposition®, or OVP, is a concept developed by Convergent Principal Tom Ralser, author of ROI for Nonprofits. 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.