NEW YORK, NY--(Marketwired - Dec 7, 2015) - A survey of nonprofit leaders highlights how demands by donors for reporting on the social returns of their gifts represent a new crucible for nonprofits.
Nearly half of nonprofit leaders and executives (47%) say it's challenging or extremely challenging to raise funds in an environment where donors have stepped-up expectations for measurements of the social return on their investments (SROI). And a sizable majority - 68% - say their organizations will change their SROI measurement approaches over the next three years in order to meet donors' expectations.
That's according to Nonprofit Pulse, a national survey of nonprofit leaders and executives by accounting firm Marks Paneth. It includes the responses of 114 CEOs, executive directors, presidents, CFOs and board members of nonprofits with annual budgets between $10 million and $200 million.
"While the call by donors for more insight into the impact of their giving raises new expectations, nonprofit leaders sit on the same side of the table as their donors and are eager to supply the metrics they are requesting," says Michael McNee, CPA, Partner-in-Charge of the Nonprofit and Government Group at Marks Paneth.
"In fact, nonprofit leaders exhibit a 'can-do' approach to the increasing importance of providing impact results," he adds.
For instance:
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Most leaders - 53% - say it is indeed possible to report definitive social return on investment results within a year of a donor's investment.
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Nearly two in 10 (19%) say their donor base allows a portion of their gifts to be used to cover the cost of outcome measurement.
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Only 4% say donors' expectations when it comes to reporting and demonstrating impact are unreasonable.
To receive a copy of Nonprofit Pulse and/or to speak with a leader from Marks Paneth's Nonprofit and Government Group, please contact Katarina Wenk-Bodenmiller of Sommerfield Communications at (212) 255-8386 or Katarina@sommerfield.com
Methodology
The Nonprofit Pulse: A Leadership Survey from Marks Paneth is a survey of the nonprofit sector. The 114 leaders participating in the research include Board Chairs, Presidents, Executive Directors, Chief Executive Officers, Chief Financial Officers, Treasurers, Chief Operating Officers, Development Directors, Vice Presidents and Board members.
The research employed self-administered questionnaires completed online by respondents. The national list of professionals surveyed was compiled by Marks Paneth LLP, the research sponsored, and by Michaels Opinion Research. Interviews were completed during the period of July 21 to September 15, 2015.