Nonprofits rely on stakeholders trust to do their work. They must earn the stakeholder’s trust through their commitment to ethical principles. Their responsibility to stakeholders extend well beyond financial checks and balances, it includes performance statistics and governance. The accountable nonprofit clearly states its mission and purpose, articulates the needs of those being served, explains how its programs work, how much they cost and what benefits they produce. Nonprofits are accountable to all those it exists to serve, to all those who support it, and to society. They are subject to laws and regulations related to their mission and are answerable to federal, state, and local governmental agencies. Nonprofits are also accountable to donors, including foundations, corporations, government agencies and other nonprofit organizations. These donors have a right to know how their money is spent. Members, volunteers, beneficiaries and the communities in which they operate also have a right to know about the organization, its activities and how it is performing. In addition to the above the boards and individual board members stand accountable in a fiduciary sense to the public at large.
Program and organization mangers must seek to strengthen the quality of their programs, performance of their organizations and improve outcomes. Evaluation answers basic questions about an organizations or a program’s effectiveness, and evaluation data can be used to improve program/organizations services. Program evaluation can be to used find out what works and what don’t work, this will help managers to focus the organizations resources into the right areas to improve and strengthen their service delivery. Evaluations also can help an organizations showcase or demonstrate to its stakeholders that the activities it is engage in is worthwhile. Evaluation of a program allows upper manager to systematically assess employee performance, figure out areas where they may need more support or training and provide employees with opportunities to discuss the challenges they face and offer potential solutions. Conducting an evaluation builds a nonprofits capacity to conduct critical self-assessments, including conducting staff and program needs assessments, measuring staff performance, and assessing whether program objectives have been met. Evaluation can help you identify areas for improvement and ultimately help you to efficiently realize your mission and improve outcomes for those you served.