Mission Impossible?: Measuring Success in Nonprofit Organizations

The difficulty of measuring performance in the nonprofit sector has long been recognized. This article begins with a case study detailing how one organization, The Nature Conservancy, tackled the challenge of moving beyond measuring activity to measuring mission impact. After several false starts, the Conservancy developed a model for measuring success, divided into three broad areas: impact, activity, and capacity. The article then presents data from interviews with leaders of thirty other leading nonprofits, who reveal how their organizations measure performance in these three areas. It concludes with some lessons learned about performance measurement in the nonprofit sector.