return on investment nelson soler mba/ms/edfp/asfp general themes: understanding our nonprofit...
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Multicultural Entrepreneurial Institute Inc., Nelson Soler (c) 2015
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Return on InvestmentNelson Soler MBA/MS/EDFP/ASFP
General Themes: Understanding our Nonprofit Framework
Importance of ROI
Calculating ROI
Framing the ROI Message
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Module 1: Framework-Nonprofit Reality
Too Many Increased Regulation Higher Competition Funding
The Nimble Nonprofit Shift on Focus (More like a business)
Demand for Accountability and Transparency Imperative of Sustainability
Too many
Demand for funds continues to increase
Funding is shrinking
Good intentions are no longer enough
Impact
Outcomes
Transparency
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Donor Base Expectations Shift
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M2: Importance of ROIHave you heard these phrases?
Do more with less? Why is your overhead and/or indirect cost too
high? What value will I get for making this donation? Or
How will the money be used? Why should I donate to you versus another
organization that do the same? Have you quantified social impact? What are your measurements? Or what is your
evaluation plan?
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All these questions are directly or indirectly referring to your Return on Investment!
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Importance of ROI
Key to Evaluation and Measurement Needed for
Sustained funding (public sector and some foundations)
Social impact quantification New funding ( private individuals, corporations)
Important for Organizational Branding and Communication Compelling Messaging Takes the subjectivity out of our work
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Challenges for ROI measurement in the Nonprofit Sector
Nonprofit traditional culture Capturing true costs Actual Calculation
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Calculating ROI
Resources Case Study
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M2: ROI and EvaluationLets visit our evaluation models
Linear
Open Model
Open System Model
Nagajaran and Vanheukelen 1997
Needs
Objectives Inputs Activities Output
Actual Outcomes
Program
Open System Model
Nagajaran and Vanheukelen 1997
Needs
Objectives Inputs Activities Output
Actual Outcomes
Program
Technical Efficiency (aka Productivity)
Adequacy
Rel
evan
cyE
ffectiveness
Cost Effectiveness
Cost Benefit
Program Effectiveness
Check point
What value you notice in applying the different models?
Where does ROI fit?
Nelson Soler©2010 for UWM School of Continuing Education
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Where does ROI fits?
You are already calculating it but you are unaware you are
Concepts Social Impact Effectiveness and Efficiency Cost-Impact Analysis
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Social Impact
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Effectiveness and Efficiency
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Cost-Impact Analysis
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Module 3- ROI and SustainabilityFundraising and Sustained Funding
Trends Need for articulating social impact Transparency Accountability SUSTAINABILITY
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Understanding your Donors
Traditional Feel Good Tax Saver Impact Seeker Entrepreneur
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Module 4- Branding and CommunicationsFraming the ROI Message
Unique Proposition to our Communities Stakeholder sustained engagement New Stakeholders involvement Employee Empowerment
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Exercise
Crafting a 60 second message
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Resources
Some non academic sources to generate discussion: http://www.volunteerhub.com/blog/return-on-investment-for-nonprofits/ http://philanthropynewsdigest.org/off-the-shelf/roi-for-nonprofits
Example of federal agency requirement: http://www.fgdc.gov/grants/ReportFormats/ROIReports
Academic: http://mdi.missouristate.edu/assets/mdi/
Training_ROI_Non_Profit_Sector_dissertation.pdf http://scholarworks.umass.edu/cgi/viewcontent.cgi?
article=1021&context=gradconf_hospitality
Book: ROI for Nonprofits: The New Key to Sustainability By Tom Ralser, 2007
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Questions
[email protected] 414-383-4633