Proving Your Nonprofit's Impact to Funders

Foundations Want
to Know Your Impact!

Funders want comprehensive data that proves your organization’s impact. How you collect, assess, and present that data is crucial for getting more funding.

In our survey, we asked funders what they considered to be the top factors they use when considering funding an organization. Over 97% of the funders stated that the impact an organization can prove is at the very top of their list.

Further, funders are driven by their efforts to maximize the impact an organization can deliver to their community. As one funder said, “We look at outcomes [and] impact as well as what they learned [and] insights gained.”

To prove outcomes and impact, funders require organizations to present strong data to back them up. Funders want as much information as possible that focuses on your impact and the effectiveness of your mission. They grant funding to organizations that can prove the good they do with data that has been collected and reported on.

But, an interesting trend rose from the funders in their answers on how they determine the effectiveness of an organization. Even though they focus on a nonprofit’s impact, they don’t expect the nonprofits to have perfect results. As one funder said, “Sometimes a project that fails is a success. We don’t consider failure to be bad.”

Positively impacting lives takes time and outcomes give funders insight into organizational alignment. Many funders “look at what the organization or program intends to achieve and whether they do. If they fall short of their objectives, [they] won’t rule them out. [They] look at the data, analyze the factors that contributed to the results, and determine any changes that can be made. [They] will work with the organization during this review process and support a revised plan.”

What Funders are
Looking for in Reporting

We asked our funders what they look for in reporting and over 87% of them answered that they look for program outcomes - not much of a surprise. They also value stories that display impact, according to our survey. Impact stories provide a real-world look at how your organization transforms lives, which inspires the listener and evokes an emotional response.

Often, nonprofits rely on one or the other to appeal to their funders, but combining stories and data is the most effective way to demonstrate your impact. This approach uses data to show scale and repeatability as well as stories to create a relatable experience and engage our memories.

Appeal to your potential funders by telling them inspiring, impactful stories outlining how your constituents have benefitted from your services. The key to a good impact story is backing them up with data. Use the data you collect to prove the impact you’ve had on your community.