9 Key Metrics to Measure Financial Performance of a Nonprofit Organization

What metrics help nonprofits monitor financial performance?

Nonprofit organizations operate in a dynamic and challenging environment. They must contend with increased competition for resources, staffing challenges, and heightened expectations from funders. Additionally, changes in regulatory and compliance requirements have led to a greater focus on data and metrics. Nonprofit leaders must be prepared to monitor their organizations’ financial health and demonstrate sustainability and stewardship to funders.

As a nonprofit leader, making the most of limited resources is essential. Focusing on nine key metrics can help you determine your organization’s performance and ensure it can continue its programs and serve the community. These metrics will also help you track the effectiveness of your organization’s efforts and demonstrate its value to stakeholders.