ABSTRACT

Nonprofit organizations' constituents, trustees and donors find financial reports confusing and too detailed. Advocates of Service Efforts and Accomplishments and assessment measures suggest that disclosing both financial and nonfinancial indicators will make the reports more useful. With hundreds of possible measures, ratios and data available, the nonprofit manager must select measures that portray the institution's condition and performance. This article presents a process and rationale for determining the measures. Also presented is a set of measures developed from interviews with presidents and administrators which were selected by a quantitative process that models complex decisions. The information selected for display both describes and measures the organization's condition and performance.