Here is an interesting report on the D.C. nonprofit community that focuses on measuring return on investment in order to show how valuable nonprofits are. Not only does the report talk about the economic impact of the organizations, it also focuses on the way nonprofits encourage civic engagement and generate social capital. The report uses programs to illustrate how the organizations save society money by focusing on prevention, finding untapped potential, and by utilizing volunteers and in-kind donations.
It’s no surprise to those of us working with nonprofits that the return on investment is significant and strengthens communities. However, many people have never considered thinking about, or evaluating, nonprofits in terms of their return on investment. Next time someone asks what your organization does for the region, you can provide a reply that goes deeper than your programming; remind them of the social capital generated, the way you maximize resources, and the money your nonprofit is saving them!
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