Nonprofit Dashboards and KPIs
Beautiful graphics and key performance indicators (KPIs) have a powerful way of telling the story and results of your nonprofit’s work. Take it up a notch in the delivery of insights to your nonprofit board members and executive team, and bring meaning to the numbers through Nonprofit Dashboards and KPIs.
Develop Meaningful Dashboards
Gone are the days of financial reporting with numbers alone. Charts and graphs (dashboards) now hold a prominent place in the reporting process, allowing executives to spend more time on decision-making activities rather than on interpreting large volumes of data. Candy for the eyes — dashboards tell a vivid story at a glance and help unlock insightful decision-making and good governance for nonprofit board members and executive leadership alike.
But, don’t limit your dashboards to the measurement of financial performance. Visuals on program statistics are valuable too. For example, understanding the number of clients you were able to serve or how many people volunteered for a particular effort provides relevant data for evaluating the effectiveness of your programs and whether you are accomplishing your mission.
Establish Key Performance Indicators (KPIs)
And don’t forget about KPIs! They are great tools to help you measure performance and set goals across the organization. As you consider what your organization KPIs should be, make sure they meet the following criteria.
- meaningful to the organization
- based on the organization’s strategic plan
- useful for setting targets
- consistent basis from year to year
- comparable to industry standards/benchmarks
And yes, doing a little benchmarking and comparing your organization’s performance to peer organizations can be very insightful and helpful for organization-wide planning.
Consider 8 Common Financial Performance Ratios
- Average $ per donor = Total Donations/Number of Donors
- Collection rate = Total Payments Received/Gross Charges
- Collection time = Accounts Receivables/Net charges x 30
- Program efficiency ratio = Program Services/Total Expenses
- Operating reliance ratio = Unrestricted Program Revenue/Total Expenses
- Fundraising efficiency ratio = Total Contributions/Fundraising Expense
- Cash flow liquidity = Cash + Marketable Securities + Cash Flow from Operations/Current Liabilities
- Unrestricted net asset ratio = Unrestricted Net Assets/Annual Expenses
Give your board members and leadership team the insights necessary for effective oversight, decision-making, and strategic planning. Make sure your nonprofit organization is leveraging dashboards and KPIs to portray financial and programmatic information.
Contact us for more information, if your nonprofit would like assistance with developing targeted dashboards and key performance indicators.