Jason has an interesting post up on the Social Entrepreneurship page at Change.org asking some weighty questions, like, “Do charities make a difference?” and “How do we know if charities have an impact?”

His key point is that those in the non-profit world need to take impact measurement seriously but also make sure they are asking the right questions.  When communicating with their donor communities, NPOs should be talking most about what they are most equipped to discuss: performance, rather than program evaluation or risk assessment.  In other words:

Which organizations will deliver the best results for outcomes that we care about? If we want to prevent breast cancer, is our $25,000 better off with Susan G. Komen, Y-Me or Race for the Cure?  Accountability and evaluation data won’t answer that question.  Most often, the real measurement inquiry is not about effectiveness (what works) or accountability (what doesn’t), but about performance (what works best).

Here’s some advice Jason has for NPOs:

• Directly engage your stakeholders and clarify the outcomes they value most
• Align your programs to produce outcomes that the “market” values
• Do some quick research and then start tracking the best “proxy” measures you can; refine as you go
• When funders ask whether your programs are “effective” clarify what they’re really looking for
• Build outcomes into your fundraising plans and get your development director into the conversation early

At Firstgiving, we KNOW charities make a difference and have a HUGE impact because we hear personal stories about their impact every day.  For example, at our marathon fundraising panel last week, we heard a very moving story about a Boston Marathoner who is running and fundraising for Samaritans because of the deep impact this NPO has made in his life.  As you might imagine, his fundraising has been very successful because he’s talking about how this organization has delivered the best results for a cause very close to his heart.