Factors influencing the credibility of performance measurement in nonprofits

Whereas a lot of resources have been devoted to performance measurement in the nonprofit sector, the measurement efforts have been hindered by the concerns over credibility of measurement. In this study, the author uses path analysis to investigate the direct and indirect influences of six predictors on the credibility of performance measurement in nonprofits. Research findings indicate that stakeholder involvement, developmental culture, level of performance measurement adoption, professionalism, and financial stability significantly affect the measurement credibility. By understanding the catalysts for measurement credibility, nonprofit leaders can promote the effectiveness of performance measurement.