Connecting Dollars to Outcomes: ERP for International Non-profits and Hong Kong Social Services Organisations

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Join us on November 22nd for an exclusive seminar of ERP for NGO where we will discuss in detail and explore strategies to enhance your nonprofit's impact measurement. Don't miss this opportunity to learn from industry experts and network with peers! Presented by ONE Pacific , the Expertise in ERP accredited solution partner

Connecting Dollars to Outcomes: How to Measure Outcomes That Deliver Mission Impact in International NGOs and Hong Kong Social Services Organisations with Oracle NetSuite
Introduction

International NGOs and Hong Kong Social Services Organisations play a crucial role in addressing societal issues, but measuring their impact remains a significant challenge. The whitepaper “Connecting Dollars to Outcomes” by Oracle NetSuite delves into the complexities of nonprofit impact measurement and offers insights into overcoming these challenges. This blog post will explore the key themes from the whitepaper, including the challenges international NGOs and Hong Kong Social Services Organisations face, the solutions provided by NetSuite, and the importance of financial reporting.

NetSuite approached 353 nonprofit executives to ask if and how they evaluate mission impact. Here are the primary metrics that they measured.

Challenges in Measuring Social Impact

International NGOs and Hong Kong Social Services Organisations often struggle to convey their mission’s impact to supporters due to confusing accounting regulations and a philanthropic culture that limits full program delivery. Funders are increasingly looking for well-managed organizations that can demonstrate meaningful, lasting impact. The whitepaper identifies two primary reasons for the difficulty in measuring impact:

  1. Lack of Definition: International NGOs and Hong Kong Social Services Organisations often lack clear definitions of target problems, programmatic interventions, expected outcomes, and desired impacts, making it challenging to measure their effectiveness.
  2. Lack of Clear Program Results Tied to Resource Expenditure: There is often a disconnect between the expenditure of resources (time, people, money) and the outcomes achieved, making it difficult to demonstrate impact.

In NetSuite’s survey of 353 nonprofit executives, different scale of organisations demonstrate similiar challenges for CFOs and the financing of non-profits for different types of social services.

NetSuite approached 353 nonprofit executives to ask if and how they evaluate mission impact. Are they using outcomes measurements to determine program effectiveness? Do they use Charity Navigator metrics? What works and doesn't when evaluating impact?

The Role of Logic Models and Theories of Change

To address these challenges, there are two models: Logic Models and Theories of Change. These methodologies help international NGOs and Hong Kong Social Services Organisations define their programs and measure their impact. Logic Models provide a structured framework for program delivery, while Theories of Change outline the steps needed to achieve desired outcomes. By adopting these approaches, international NGOs and Hong Kong Social Services Organisations can better articulate their impact and demonstrate their effectiveness to funders and supporters.

NetSuite’s Solution for International NGOs and Hong Kong Social Services Organisations

NetSuite offers a comprehensive solution designed to help international NGOs and Hong Kong Social Services Organisations measure and maximize their social impact. With powerful tools for data collection, analysis, and reporting, NetSuite enables organizations to track their progress, demonstrate effectiveness, and make data-driven decisions. The whitepaper highlights several key features of NetSuite’s solution:

  1. Data Collection and Analysis: NetSuite provides tools for collecting and analyzing data, allowing international NGOs and Hong Kong Social Services Organisations to track their progress and measure their impact effectively.
  2. Reporting and Transparency: NetSuite’s reporting capabilities enable international NGOs and Hong Kong Social Services Organisations to demonstrate their effectiveness to funders and supporters, building trust and transparency.
  3. Financial Management: NetSuite’s financial management tools help international NGOs and Hong Kong Social Services Organisations streamline their financial reporting processes, improve accuracy, and gain insights into their financial health.

Financial Reporting for International NGOs and Hong Kong Social Services Organisations

Accurate financial reporting is crucial for international NGOs and Hong Kong Social Services Organisations to maintain transparency, build trust with donors, and ensure compliance. The complex accounting regulations that international NGOs and Hong Kong Social Services Organisations must navigate, including the need to categorize each donation based on donor intent and allocate each expense as either an administrative, fundraising, or program cost. These regulations can be challenging to manage, but NetSuite’s financial management tools provide a solution.

The Importance of Full-Cost Funding

The whitepaper also highlights the importance of full-cost funding for international NGOs and Hong Kong Social Services Organisations. Traditional philanthropic culture often emphasizes low overhead costs as a benchmark for mission effectiveness, but this approach can limit international NGOs and Hong Kong Social Services Organisations’ ability to invest in the infrastructure needed to deliver and evaluate their programs. The whitepaper advocates for a shift towards full-cost funding, which includes support for overhead expenses and capacity building. By embracing this approach, international NGOs and Hong Kong Social Services Organisations can build robust infrastructure and demonstrate their impact more effectively.


Conclusion

Measuring social impact is a complex but essential task for international NGOs and Hong Kong Social Services Organisations. The whitepaper “Connecting Dollars to Outcomes” provides valuable insights into the challenges international NGOs and Hong Kong Social Services Organisations face and offers practical solutions for overcoming these obstacles. By adopting methodologies like Logic Models and Theories of Change, leveraging NetSuite’s comprehensive solution, and advocating for full-cost funding, international NGOs and Hong Kong Social Services Organisations can enhance their impact measurement and demonstrate their effectiveness to funders and supporters.

Meet your peers at Free ERP for NGO Training on 22 November 2024 in Hong Kong!

Join us on November 22nd for an exclusive seminar where we will discuss these topics in detail and explore strategies to enhance your organisation’s impact measurement. Don’t miss this opportunity to learn from industry experts and network with peers who share your commitment to making a difference.

Date and Time: Friday, November 22, 2024, 2:00 PM – 6:00 PM
Location: Oracle Conference Room, Causeway Bay, Hong Kong (Address will be provided in the confirmation email)
Target Audience: Finance, IT, and project or organizational decision-makers
Details: Confirmed attendees will receive a certificate of attendance and a copy of the “Maximizing Efficiency – Practical Handbook for Financial Management and Social Impact Optimization for Nonprofits.”
Note: If your colleagues wish to attend, please ensure they register in advance. Upon confirmation, they will be provided with entry credentials. Important: This event is only open to those who register at least 24 hours in advance. On-site registration will not be available. We apologize for any inconvenience.

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