Here's how you can gauge the ROI of non-profit managers' continuing education efforts.
In the non-profit sector, ensuring that funds are used effectively is crucial, and this includes investments in the continuing education of managers. But how can you tell if these educational efforts are paying off? Understanding the return on investment (ROI) for such initiatives is essential for maintaining a skilled and knowledgeable leadership team that can guide your organization to greater impact.
Return on Investment (ROI) in the context of non-profit management education is a measure of the benefits received from the training compared to its cost. To calculate ROI, you must identify both tangible and intangible outcomes. Tangible outcomes might include increased fundraising or cost savings, while intangible benefits could be improved leadership skills or enhanced strategic thinking. Assigning monetary values to these outcomes, though challenging, is a fundamental step in gauging ROI.
-
Joséphine MANDENG
Consultante en structuration associative
Le retour sur investissement, appelé aussi rendement du capital investi (RCI), est une mesure axée sur le rendement utilisée pour déterminer si un investissement dans votre organisation est efficace. Il prend en compte les bénéfices ou les pertes initiales d'un investissement par rapport à son coût initial.
-
George Williams Morris
Youth Activist and Social worker
One way to increase your return on investment is to generate more sales and revenues or raise your price . If you can increase sales and revenues with out increasing your costs ,or only increase your costs enough to still provide net gain in profits , you have improved your return.
To truly gauge the ROI of continuing education, you must measure its impact on your organization's performance. This could involve tracking changes in fundraising efficiency, program outcomes, or even staff retention rates before and after the training. By setting clear benchmarks and using performance indicators, you can start to draw a line between managerial education and organizational success, providing a more concrete understanding of the education's value.
-
Joséphine MANDENG
Consultante en structuration associative
La formation du personnel est un investissement car elle permet à la Direction de l'organisation de reconnaître et d'évaluer ses compétences acquises sur son poste de travail. De plus, il devient plus qualifié dans le domaine, ce qui accroît son efficacité dans ses tâches.
Carrying out a cost analysis is a critical component of determining ROI. This involves calculating the total investment in continuing education, including course fees, materials, and any associated opportunity costs, such as time away from work. By understanding the full financial commitment, you can better assess whether the benefits derived from the education justify the expenditure.
While harder to quantify, intangible benefits are a vital piece of the ROI puzzle. Enhanced leadership capabilities, improved morale, and a stronger organizational culture can all stem from continuing education. To evaluate these less tangible outcomes, consider conducting surveys or interviews to gather qualitative data on how the training has influenced management performance and organizational health.
Considering the long-term value of continuing education is essential when evaluating ROI. While some benefits may be immediate, others, like the development of a more strategic mindset or the adoption of innovative practices, may unfold over time. Think about how education can lead to sustained improvements in your non-profit's operations and mission fulfillment in the years to come.
-
Charles Bearden PA-CPTC
Practicing PA for 51 years. Advisory Board Member Organize.org. Organ Transplantology pioneer, SME and KOL. "Realizing the Promise of Equity in the Organ Transplant System. " NASEM Consensus Study Member
Your non-profit will only be as good or great as your staff. They are individuals whose professional growth, self-esteem, capabilities and capacities, team value and abilities forwarding your mission depend, in great measure, on the support and encouragement you give them. Make no mistake, continuing education that you pay for and/or provide your staff during all their career is the single most valuable asset you can give them. I spent 25 years with the same non-profit organ transplant bank. They gave me at least $2,500 per year for CME. Registrations, travel, lodging, meals with the requirement that all my CME requirements were maintained along with my licenses and board and professional certifications. 25 years. It worked. very well.
Finally, use your ROI analysis as a tool for strategic decision-making. By understanding the value of continuing education, you can make informed choices about future investments in your managers' development. This might include tailoring educational programs to specific organizational needs or identifying areas where further training could have the most significant impact on your non-profit's effectiveness.
Rate this article
More relevant reading
-
Non-profit LeadershipHere's how you can maximize the value of continuing education programs for nonprofit leaders.
-
Non-profit Program DevelopmentWhat do you do if you're a busy non-profit program developer trying to fit in continuing education?
-
Nonprofit ManagementHow can you make your nonprofit management training relevant to all staff levels?
-
Board DevelopmentWhat are the best online platforms or tools for board education and training?