How and Why Nonprofits Use Outcome Information

The nonpartisan Urban Institute publishes studies, reports, and books on timely topics worthy of public consideration. The views expressed are those of the authors and should not be attributed to the Urban Institute, its trustees, or its funders.

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Contents

List of Symposium Participants

1 Introduction

2 Uses of Outcome Information

Internal Uses
External Uses
Exhibit 1. Basic Uses for Outcome Information

3 Factors That Affect the Use of Outcome Information
Organizational Climate Factors
Funding Factors
Staffing Factors
Outcome Measurement Process Factors
Technology Factors

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List of Symposium Participants
Alan Abramson The Aspen Institute	Tom Kelly The Annie E. Casey Foundation
Nelson Berigtold Big Brothers Big Sisters of Central Maryland	Frazierita Klasen The Pew Charitable Trusts
Elizabeth Boris The Urban Institute	Linda Lampkin The Urban Institute
Bailey Center United Community Ministries	Elaine Morley The Urban Institute
Jake Cowan The Urban Institute	Heather Johnston Nicholson Girls Incorporated
Dwayne Crompton KCMC Child Development Corporation	Janice Hamilton Outtz The Annie E. Casey Foundation
Janel Dancy Northern Virginia Family Services	Larry Pignone Montgomery United Way
Stacey Daniels-Young Ewing Marion Kauffman Foundation	Margaret Plantz United Way of America
Gwen Ferguson United Way of Prince George's County	Florene Price Northern Virginia Urban League
Kathleen Guinan Crossway Community	Sherri Price Girls Incorporated of Rapid City
Harry Hatry The Urban Institute	Ellen Pskowski Jewish Social Service Agency
Faye Hegburg Family and Child Services of Washington, D.C., Inc.	David Reingold Corporation for National and Community Service
Heather Iliff Alliance for Nonprofit Management	Tom Sherman Crossway Community
Nadine Jalandoni Independent Sector	Tom Smart Boys and Girls Clubs of America
	Julia Stephens Northern Virginia Family Services
	Ken Weiner Montgomery College

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Introduction

As nonprofit organizations perform an increasingly important role in delivering human services, there is also increased pressure for greater accountability—to funders and other stakeholders, including the public. Current perceptions of accountability go beyond traditional interests in efficiency to include effectiveness in helping their clients.

Outcome data is often used to help measure effectiveness and more nonprofits are involved in collecting these data each year. But it is still rare to find this valuable information being used to help improve the way services are delivered. Most often, it is reported to funders as a requirement under a grant and is put to little, if any, internal use by the organization. Many organizations do not appreciate or understand the potential usefulness of outcome information for improving services.

On June 26, 2002, a Symposium sponsored by The Urban Institute, the Aspen Institute's Nonprofit Sector Research Fund, INDEPENDENT SECTOR, and United Way of America convened a group of about 30 participants from a variety of perspectives to discuss the uses of outcome information by nonprofits and the factors that affect use. Funding support was provided by the Aspen Institute's Nonprofit Sector Research Fund and the David and Lucile Packard Foundation.

There were attendees from local service nonprofit organizations, regional organizations (such as local United Way chapters), national service organizations with interest in outcome measurement (such as Boys and Girls Clubs of America and Big Brothers Big Sisters of America), national organizations (such as United Way of America and INDEPENDENT SECTOR), and private foundations. A list is included at the beginning of this report.

This symposium built on a previous symposium held in June 2000, sponsored by the same organizations. That meeting focused more broadly on the current status of outcome management and resulted in the report An Agenda for Action: Outcome Management in Nonprofit Organizations, available at http://www.urban.org. Because a major conclusion was that nonprofits needed encouragement to use their regularly collected outcome information to help them improve services to clients, the second symposium concentrated on this topic.

SCOPE OF THE SYMPOSIUM

This symposium provided a forum to discuss in detail the uses of the outcome information by nonprofit organizations, with a focus on those that provide direct services to clients.

The emphasis was on the use of outcome information as an integral part of what has become known as outcome management. The symposium was not concerned with the techniques of outcome measurement, except for elements of outcome measurement that become factors in limiting the use and utility of the outcome information. The symposium used the following definitions in distinguishing these two concepts and the related concepts of outcomes and outcome indicators.

• Outcome management refers to the interpretation and use of outcome data, particularly to improve services to clients. The term encompasses outcome measurement, which provides a basic source of information for outcome management.
• Outcome measurement refers only to the procedure of identifying and collecting data on program outcomes. It involves (1) the identification of outcomes; (2) the development of appropriate outcome indicators and data collection procedures; and (3) data analysis to better understand organization achievements.
• Outcomes refer to the specific results that service organizations seek, such as improving client conditions.
• Outcome indicators refer to the specific measurements of the desired results, such as "number, and percent, of clients whose condition improved after receiving services."

Participants at the symposium discussed their experiences and insights in small group sessions. These were followed by plenary sessions to share key points with the larger group.

NEXT STEPS

The symposium closed with a plenary session to discuss next steps. A number of suggestions were offered by symposium participants to advance the collection and use of outcome information in nonprofit organizations. A key suggestion that most participants agreed on is the need for improved technology both for collecting and analyzing outcome data.

Participants also wanted to have examples of uses of outcome data in other nonprofit organizations. There is no set of industry standards or generally accepted practices guiding how outcome information is collected and used in the nonprofit sector.

There was strong support for institutionalizing the collection and use of outcome information widely not only across the nonprofit sector, but also internally within nonprofit organizations. Nonprofits should establish a structure and regular process that emphasizes the importance and value of outcome data.

REPORT FORMAT

This report, written by Harry Hatry, Linda Lampkin, Elaine Morley, and Jacob Cowan, summarizes the discussions at the symposium. Section 2 presents the uses of outcome information by nonprofit organizations identified by the participants. While it lists both internal uses and external uses, the primary focus is on internal use for improving services.

Section 3 discusses factors that symposium participants identified as affecting the use of outcome information, either negatively or positively. The factors are grouped into five categories, including organizational climate, funding, staffing, outcome measurement process, and technology.

Note: This report is available in its entirety in the Portable Document Format (PDF).

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