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

By Joel Zimmerman

Within this category, the nonprofit can set goals and measure progress relating to leadership activities and accomplishments of both senior managers and board members.

5. Internal operations. For-profit organizations are concerned, of course, about the efficiencies of internal operations. Yet, they plan to operate with a margin of profit, which, in poorly performing years, can simply slim down or disappear to cover the effects of less-than-optimal performance.