With the right implementation, nonprofits have a straightforward tool for measuring success at their fingertips.

By Joel Zimmerman

2. Resource allocation. The second category relates to monetary and perhaps other nonfinancial resources from an internal perspective. An organization always starts the year with a spending plan (a budget), which should have been created in order to support its program plan, and reflect its policies and priorities for the upcoming year. Alas, every year brings with it unforeseen events, changes in priorities, emergency allocations and the like. Therefore, a complete budget plan also should include principles and practices for budgetary reviews and reallocations.