Challenges in the Use of Performance Data in Management: Results of a National Survey of Human Service Nonprofit Organizations

Abstract

Nonprofit organizations are increasingly pressured to measure their performance. Although several studies identify driving factors of measuring performance in public organizations, there is limited understanding of current performance management practices at nonprofit organizations. Drawing from an online survey of mid- to large-sized nonprofit human service organizations across the United States, this research examines: (1) the types of performance information human service nonprofits measure; (2) the frequency of using performance data; and (3) the challenges nonprofits commonly face integrating performance data into management. Our empirical evidence suggests that human service nonprofits must recognize that data collected to meet external accountability requirements, often mandated by government or funders, may not provide meaningful information that organizations can use to enhance performance. We also discuss the nuanced role tangible incentives play in nonprofit performance management. The article concludes by highlighting the need for nonprofit managers and grant makers to work together to develop measures that meet both accountability and performance improvement aims.

Keywords:

• continuous cycle
• funder requirements
• nonprofit leadership
• performance measurement challenges

Additional information

Notes on contributors

Mirae Kim

Mirae Kim is an assistant professor at the Andrew Young School of Policy Studies, Georgia State University. She directs the Nonprofit Organization Research Panel (norpanel.org) project. Her research addressed issues of nonprofit financial management, the role of 501c3 organizations in civil society, arts management, and inter-organizational partnerships. Her recent work has also focused on the various roles immigrant/ethnic nonprofits in different communities.

Cleopatra Charles

Cleopatra Charles (Grizzle) is an associate professor in the School of Public Affairs and Administration at Rutgers University—Newark. Her research focuses on financial management and fiscal policy issues that affect public organizations particularly related to fiscal slack, which incorporates debt management, revenue diversification, and revenue structure. More recently, her research has focused on nonprofit organizations and the relationship between governance decisions and financial preparedness in dealing with adverse circumstances.

Sarah L. Pettijohn

Sarah L. Pettijohn is an assistant professor in the Department of Political Science and Public Administration at the University of North Carolina at Charlotte. Her research focuses on the role, capacity, and financial well-being of nonprofit organizations in the United States. Specifically, Dr. Pettijohn examines government contracts and grants from the nonprofit perspective as well as how nonprofits use data collected to enhance organizational performance.