Impact-Based Philanthropy: Reporting Project Impact to Help Raise Dollars

Create a project plan
4. Impact-based analysis: A nonprofit defines its project plan using impact-based analysis (a process based on the widely used Logic Model). The donor verifies that key milestones are monitored and evaluated along the way.

Develop a capacity plan
5. Financial responsibility: Attaining financial responsibility requires the nonprofit to outline a capacity plan for the right budgets, systems, resources, people and guiding principles. The donor must realize that where a nonprofit spends its funds is not nearly as telling as analyzing how it spends its funds and, most importantly, to what end.