For your nonprofit to be successful there has to be some actionable objectives. And this should be framed on the basis of some deep analysis of your performance. You should know where you stand, how well you use your resources and make appropriate strategies to reach your desired goals. This is where benchmarking pitches in. You could collect the data using donor management software.
What is a Benchmark?
A benchmark is a measurement that compares your past and present performance with that of similar, successful nonprofits in terms of productivity and profitability.This would enable you to identify your strength and weaknesses as a way to improve your future fundraising efforts. It helps to develop an effective strategy keeping an eye on where to cut costs and how to increase your revenues.
What are the steps involved in benchmarking?
There are a series of easy steps which would help you in the process of benchmarking. Enumerating them below:
Set a dedicated team for it
Make a team out of your staff who would be given the responsibility to set and attain benchmarks. Teamwork would be vital for regular measure of progress and moving towards surpassing your goals. Including your financial advisor in it would help you to select the most appropriate benchmarks from a financial and operational perspective.
Articulate your vision and goals
Defining your vision and goals is a really important step. Once you have the future missions in place, only then will you be able to figure out how you could improve, in order to attain your goals. Start with a few benchmarks, in areas that you think should be your focus in the near future. Write down all the benchmarks so that you are clear about where you are going and how you are getting there.
Collect data and compare
Using donor management software could help you in the collection of data and evaluating it. You need to look at your nonprofit’s past and present data for each chosen benchmark. Compare it with the metrics of other nonprofits with similar missions and revenues.
Evaluation of your benchmarks
Evaluation of your benchmarks is an extremely important step to know how you are going to accomplish your goals and whether something is working or not. Regular evaluation brings a unique perspective from your staff and members.
These are a few steps which could help you in the process of benchmarking. Having an action oriented strategy backed by data is the way to success.