Sometimes, measurement can feel like a burden: a box checked to satisfy funders or complete an annual report. But when it is treated as an opportunity to learn and drive continuous improvement, nonprofits can unlock new pathways to organizational growth and resilience.

At The Bridgespan Group, we’ve spent years working alongside nonprofits, philanthropic collaboratives, field catalysts, and funders to learn about one of the most powerful—yet often misunderstood—tools for driving social change: impact measurement.

This resource aims to address common questions about impact measurement. Read on for Bridgespan’s latest frameworks and tools, grounded in our work on Measurement, Evaluation, and Learning (MEL). Whether your nonprofit is just getting started or refining a long-standing measurement practice, we hope this information serves as both a primer and a launchpad to give you what you need to measure what matters, learn from it, and ultimately, make better decisions.

What Is Impact Measurement?

Impact measurement is the process of collecting and using data and information to understand how much progress your organization has made toward its intended outcomes. It’s not just about reporting success. It’s about learning, improving, and growing your impact over time.

TIP: Impact measurement is most valuable when it helps answer the question: 
 “Are we making the difference we set out to make, and how can we do it better?”

For nonprofits, measuring impact can often feel like something driven by external forces, such as funders requesting proof of effectiveness. But when used effectively, measurement can be a powerful tool for organizational decision making, strategy refinement, and learning.

Done right, measurement is embedded in the fundamental processes of how your organization works, not just how it reports. Designing and owning these processes internally delivers real-time insights and continuous improvement. In this way, you open the door to:

• Smarter strategy decisions
• Faster identification of what’s working and what isn’t
• Stronger alignment across teams and stakeholders
• A deeper understanding of what really matters to achieve the impact you seek

The table below depicts two common reasons organizations do impact measurement. They differ, not only in intention—measuring to prove or to learn—but also in frequency.

How Do I Get Started with Nonprofit Impact Measurement?

Starting—or restarting—your approach to impact measurement doesn’t have to be complicated. The key is to focus on measuring what matters most, collecting the right data, and then putting the information to work in ways that support decision making and learning.

1. Define What Outcomes and Metrics Matter Most

You don’t need to measure everything, you need to measure the right things. That is, the outcomes and data that align with your Intended Impact and your Theory of Change (II/TOC).

Begin by clarifying your II/TOC. This is your foundation. Your II/TOC answers questions like: What are you trying to achieve? How will you know if you’re getting there? Beyond these, more specific learning questions can help guide your data collection:

• What aspects of your theory of change and/or logic model have the least evidence (whether internally or externally)?
• What strategic decisions tied to your impact can’t you make over the next three to five years because you don’t have the data/evidence?
• What inputs, outputs, and outcomes map to your II/TOC?
• What metrics or indicators will help you know that these inputs, outputs, and outcomes occurred?

TIP: Spend some time reading through our guide on “How to Define What Outcomes and Related Metrics Matter Most” for more practical guidance and examples on how to map your II/TOC to an outcomes framework.

Good measurement balances depth with practicality. This means a few high-quality metrics are significantly more valuable than pages of unused data. Focusing on the few vital outcomes core to your II/TOC helps your organization have a meaningful impact.

When selecting key metrics, ask:

• Does this metric align with our goals?
• Will it help us make decisions or improve performance?
• Does it reflect what matters to our community and constituents?

2. Measure Metrics with the Right Data

Once you’ve clarified your outcomes and the associated small set of high-priority metrics that align with your II/TOC, start collecting data in a way that fits your organization’s size, resources, and goals. 
 
 This could include:

• Surveys or interviews with clients and constituents
• Operational data you’re already tracking
• External datasets that add context to your work

Make sure to balance qualitative and quantitative data because different types of questions call for different types of data. The most effective impact measurement blends numbers with stories. For example:

• Quantitative data might tell you how many youths completed a program.
• Qualitative data (like interviews or open-ended surveys) can reveal how that program changed their perspective, behavior, or opportunities.

Think about your organization’s size, resources, and goals when you consider what data you collect and how you collect it. Right-sizing your data collection will save your team time and energy while ensuring you remain aware of the burden this can put on people within your organization.

3. Learn and Improve Based on the Data You Collect

 Measurement only adds value if it leads to better decisions. Set regular check-ins (monthly, quarterly, or annually) to review the data, reflect on insights, and decide what should change. 

 Make time for your leadership team to ask:

• What’s working well?
• Where are we falling short?
• What’s surprising?
• What might we need to shift?

Rather than seeing measurement as “extra work,” it’s important to consider it as a way for your organization to grow stronger and more strategic over time. And while data doesn’t make decisions, good data can go a long way in helping you make better ones.

Who Should Be Involved with Data Collection?

In some organizations, impact measurement ends up being treated as a technical task, owned by a single team member or outsourced entirely. But to be effective, your measurement approach needs to include those most impacted as well as those with the least traditional power.

Bringing in a wide range of voices helps shape what you measure, how you measure it, and how the insights will be used. Those most affected by your organization’s work—and therefore closest to the challenges—often have the clearest sense of what is working and what is needed. Your organization will benefit from engaging your communities and constituents as partners in the process, rather than “beneficiaries.”

At Bridgespan, we refer to this as measuring with equity, and it includes several key practices:

Before You Collect Data:

• Engage communities and constituents as partners. Ask them what success looks like and what outcomes would be most meaningful.
• Investigate inequities by surfacing questions around who benefits—and who doesn’t—from your programs.
• Design inclusive data tools and processes that are accessible, culturally appropriate, and tailored to different communities.

As You Collect Data:

• Measure what matters to your clients and constituents, not just about them.
• Be mindful of how you ask questions, especially across lines of race, class, gender, or geography.
• Disaggregate your data by demographics to identify trends, gaps, and disparities.

After You Analyze the Data:

• Use what you learn to drive more equitable decision making.
• Engage your clients and community in interpreting the findings and driving changes.
• Close the loop by sharing back what you learned and what actions you’re taking.

Involving a broader group in your measurement practice both leads to better data; and builds trust, accountability, and stronger relationships, while surfacing insights you might otherwise miss and reinforcing your values in action.

How Can I Use Measurement and Data Insights at My Nonprofit?

You’ve defined your outcomes. You’ve gathered meaningful data. Now what? The power of impact measurement lies in how you use it. Insight becomes impact when it informs your decisions, shapes your programs, and strengthens your relationships with staff, communities, funders, and the broader field. Here are a few steps you can take to make your organization a “power user” of your impact measurement.

Make Learning from Your Measurement a Regular Practice

If you want your data to drive meaningful change, it needs to be part of your organization’s rhythm, not something that’s reviewed once a year. We recommend building structured, recurring opportunities to learn from your data:

• Leadership team reviews: Schedule a monthly, quarterly, or annual review of key metrics. Block time specifically so it doesn’t get buried by other agenda items.
• Dashboards for decision making: Use a dashboard to monitor trends and highlight when something needs closer attention. Keep these simple and action-oriented.
• Tailor dashboards to specific groups: Some organizations use different dashboards for leaders, managers, and frontline staff, to ensure everyone has access to the data they need.

Share Learnings with Stakeholders—The Right Way

Different stakeholders need different data and different ways of engaging with it. A key part of using measurement data well is tailoring your communication, and how you share it, to the stakeholders you’re communicating with. Here’s how that might look:

• Constituents and frontline staff: This group might include clients, community members, organizational partners, and staff. They might have been involved in the data collection process, so thoughtfully engaging them helps to close the loop. Engaging with them is not just about sharing findings but also about understanding what the findings might mean and what your next steps should be.
   
• Boards: Present only the data that speaks most clearly to your organization’s strategic priorities. It’s important that the board can see and understand the data and insights that are most relevant to larger questions around strategy and finance. Always make sure to include space for reflection and discussion, not just reporting.
   
• Funders and donors: Current or potential donors are an important audience for measurement results. While there is no one way to engage donors, best practices include: creating a compelling case for your organization’s work; making it tangible by describing what the work looks like and connecting aspirations to tangible milestones; and educating and sharing data, insights, and rationale for approaches being taken or shifts arising from what you’re learning.

Measure What Matters, Learn What Works

Impact measurement isn’t just about accountability—it’s about learning, improving, and driving better outcomes for the people and communities you serve. When done well, measurement, evaluation, and learning helps your organization focus on what truly matters. With this increased clarity, you can enable your teams with the information they need to adapt in real time, and, at same time, build stronger alignment across staff, boards, funders, and communities.