Nonprofits, Funders, and Evaluation

This article examines the extent to which different types of funders are asking nonprofit organizations for evaluation and performance measurement data, and describes the many ways in which nonprofit organizations are responding to these requests. The picture that emerges is one that is decidedly mixed, illustrating a range of behaviors that challenges the current perception that most, if not all, funders are asking nonprofit organizations for more evaluation and performance measurement data. The data collected during this study show that only those nonprofit organizations that receive considerable funding from the federal government and the United Way are engaging in program evaluation and performance measurement, compared to nonprofit organizations that receive more funding from state and local governments, foundations, and other sources. Furthermore, the extent to which nonprofit organizations are subjected to external monitoring and descriptive reporting requirements also varies according to the type and amount of funding.