Competency 2: Decision-Making

The credibility, feasibility, and survivability of a nonprofit organization are contingent upon its ability to meet public demand for greater transparency practices and accountability systems (Hudson, 2005). Research shows that funders and grant-making entities continue to put heavy emphasis on social return on investment by measuring nonprofit effectiveness through strict eligibility criteria and arbitrary reporting requirements outlined in professional agreements (Yuen et al., 2009). A nonprofit’s performance is measured on multiple operational levels including financial responsibility, board governance, strategic leadership, human resource management, staff capacity and competency, programmatic achievement, and volunteer management. Since most charitable agencies have multiple funders with specific standards for evaluating their investments, nonprofit leaders can find it challenging to develop an internal evaluation system that meets the terms and conditions of each funder. Consequently, organizations must demonstrate self-regulation by having strong established policies and procedures that ensure legal compliance (accountability) and maintain healthy relationships with external partners (transparency). 

Program evaluations and performance monitoring are common methods that funders use to understand how their financial investment demonstrates a significant impact on the community and are useful for upholding accountable practices. According to Ebrahim (2016), “…accountability tools refer to discrete devices or techniques…often applied over a limited period of time, can be tangibly documented, and can be repeated” (p. 108). From the program delivery perspective, an organization’s accountability practices should be carefully mapped out through an evaluation plan with defined deliverables, data collection methods, and monitoring techniques. In doing so, leaders and managers are better equipped to make decisions regarding program and organizational improvement (Worth, 2021; Yuen et al., 2009). Developing the program evaluation plan for Orange County Head Start, Inc. (PAD 6327) was a rigorous exercise that required a certain level of problem-solving to measure program performance effectively and efficiently, and subsequently, use those results to strategize program improvement. Through this evaluation plan, I learned that a logic model is an effective evaluation and accountability tool for strategizing program design, implementing processes, and problem-solving improvement. Logic models provide organization leaders and funders with an analytical framework by breaking down a program’s resources and investments (inputs), direct tactics (activities), evidence of implementation (outputs), and evidence of change (outcomes) (Yuen et al., 2009). Developing a logic model also provides funders insight on how the organization plans to achieve its specified goals through each objective. Many academic scholars argue that adopting a combination of quantitative and qualitative evaluation instruments to measure a program’s outputs and outcomes is highly effective (Worth, 2021; Yuen et al., 2009). Such data collection methods include recording the number of participants that complete the program reveals factual evidence (outputs), whereas post-program surveys illustrate how participants apply the knowledge, skills and behaviors learned from the program to their life (outcomes).

Furthermore, nonprofit organizations often struggle with staff capacity due to funders’ restrictions on overhead spending. Therefore, organization leaders are forced to problem-solve solutions to fill capacity gaps. Developing the volunteer management case study for L.O.V.E. Our Youth, Inc. (PAD 5145) revealed that having a strong volunteer program with effective management practices is essential for a nonprofit organization to carry out its mission. However, volunteers are considered high-risk and therefore add another complex layer to an organization’s accountability practices. Research shows that establishing clearly defined policies and procedures for volunteer management is an effective strategy for mitigating risk and assisting in quality control. Such policies typically include identifying the specific need for volunteers, a volunteer job description, recruitment and selection of volunteers, background screenings, orientation, training, and creating a volunteer manual (Brundey, 2016; Worth, 2021). Volunteers can also provide organizations candid feedback on their current implementation through anonymous surveys, which in return allows leaders and managers to strengthen existing volunteerism approaches and adjust weaker practices.

As the nonprofit sector transforms, it is imperative for charitable organizations to have competent leaders that can make critical decisions through deliberate problem-solving and critical thinking. These decisions must be made to uphold accountability practices on all operational levels and demonstrate transparency with constituents. By adopting appropriate program evaluation, risk management, and quality control methods, leaders ensure an organization’s vitality and survivability.

References

Brundey, Jeffery L. (2016). Designing and managing volunteer programs. In David O. Renz and Robert D. Herman’s The Jossey-Bass Handbook of Nonprofit Leadership and Management (4th ed): 688-733.

Ebrahim, Alnoor. (2016). In David O. Renz and Robert D. Herman’s The Jossey-Bass Handbook of Nonprofit Leadership and Management (4th ed): 102-123.

Hudson, Mike. (2005). Managing at the leading edge. Wiley & Sons.

Worth, Michael J. (2021). Nonprofit Management: Principles and Practice (6th ed.). SAGE Publications, Inc.

Yuen, Francis K. O., Terao, Kenneth L., A & Schmidt, Anna Marie. (2009). Effective grant writing and program evaluation for human service professionals. Wiley & Sons.