How to Create an Evaluation Plan for Nonprofits
In the nonprofit world, making an impact is just as important as knowing how to measure it—and that’s where a good evaluation plan comes in. It’s more than just numbers; it’s about getting a clear picture of how your work is affecting the people and communities you care about. A strong evaluation plan helps you stay focused on your goals, figure out what’s working, and helps you make adjustments when things aren’t.
It also helps you identify meaningful stories you can use to reach your supporters and partners. With a well-crafted plan, you can ensure that every effort makes a difference and keeps your mission on track.
So, how do you create an evaluation plan that works? Whether you're starting from scratch or refining an existing approach, the key is to break it down into manageable steps.
Why an Evaluation Matters
Imagine this—you’re in a meeting with a potential funder, sharing the incredible work your nonprofit is doing. Just as you start to paint the picture of your impact, they ask, “How do you know you’re making a real difference?”
What do you say?
Without an evaluation plan, it’s tough to give a confident answer. But with one, you’ve not only got the numbers, you’ve turned those numbers into compelling narratives.
An evaluation plan is your way of showing exactly how your organization is changing lives, backed by data that speaks to funders, stakeholders, and your community.
But more than that, it gives you clarity. It shows where you're making strides, where you can improve, and where to pour your energy. After all, we’re here to make every moment count, right?
Nonprofits often operate with limited resources, and funders are increasingly focused on measurable outcomes. A thoughtful evaluation plan does so much more than you might think:
Measures Program Effectiveness: Identifies what's working and what isn’t.
Guides Decision-Making: Provides data to refine programs and strategies.
Builds Stakeholder Confidence: Funders, board members, and community partners want to see impact.
Supports Grant Applications: Increase funding chances by demonstrating accountability.
Start with Your Why and Strategy at the Forefront
Before diving in, let’s take a step back.
Your “why” should guide everything you do—both your program design and how you measure success. Whether your nonprofit aims to reduce poverty, promote education, or empower women, your evaluation plan should reflect the mission you’re striving to achieve.
Questions to Ask:
What is the core purpose or mission of our nonprofit, and how does this evaluation support it?
How can we design our evaluation to align with our strategic goals?
What are the key outcomes that reflect our “why” and how will we measure them?
How will this evaluation help us demonstrate progress toward our mission to funders, staff, and the community?
Create an Evaluation Design System
So now that we’ve got our “why,” let’s talk logistics. How do you actually do this?
Your evaluation plan should work for you, not the other way around. It’s just a way to capture the good stuff you’re already doing.
Setting Clear and Achievable Objectives
Before you can figure out how successful your programs are, you’ve got to know what success actually means. Setting clear and realistic objectives is your first step in building a strong evaluation plan. Start by reflecting on your nonprofit’s mission and vision—your objectives should tie directly into those larger goals.
When you’re setting these objectives, be specific and make sure they’re measurable. For example, instead of a vague goal like "increase community engagement," aim for something more concrete, like "increase the number of community volunteers by 20% over the next year." This kind of clarity gives you a solid direction for your evaluation and clear milestones to track along the way.
For more help on setting goals, check out the blog Setting SMART(IE) Goals.
Engaging Stakeholders in the Evaluation Process
An evaluation plan is most effective when it's a collaborative effort. Your evaluation shouldn’t happen in a vacuum. Talk to the people you’re serving, your staff, your board. Get their input on what success looks like. This way, your plan reflects the voices that matter most.
Here's a helpful blog for more helpful tips on building stronger community connections.
Designing Data Collection and Analysis Strategies
Data collection is a critical part of any evaluation plan. Without reliable data, it’s impossible to assess your nonprofit’s impact accurately. Begin by determining the types of data you need to collect to measure your KPIs (Key Performance Indicators) effectively. This may include quantitative data, like survey responses or attendance records, as well as qualitative data, such as interviews or focus group discussions.
When collecting data, think about the tools and methods that will best suit your organization’s needs and capacity. Simple excel worksheets work well for many nonprofits. As you grow, online surveys, database management systems, and case management software are just a few options to explore. Be sure to establish data collection protocols, including timelines, responsibilities, and quality control measures, to ensure consistency and accuracy.
Analyzing and Sharing Your Results
Here’s where the magic happens. You’ve collected all this awesome data, and now it’s time to figure out what it’s telling you. Are you hitting your goals? What’s working really well? Where could you do better? Be honest with yourself—this is how you grow.
And don’t forget to share your findings! Whether it’s a formal report for funders or a casual update for your community, your evaluation is a powerful tool for building trust and credibility. It’s also a great way to celebrate wins and keep the momentum going.
Share results through multiple channels—meetings, newsletters, social media—to reach a wide audience. Celebrate successes and acknowledge contributions to foster ongoing engagement and a culture of continuous learning.
Building a Culture of Evaluation in Your Nonprofit
Ultimately, the success of your evaluation plan hinges on creating a culture of evaluation within your nonprofit. This means embedding evaluation practices into the fabric of your organization and fostering an environment where learning and improvement are valued.
Lead by example by prioritizing evaluation in strategic planning. Encourage staff and volunteers to engage in evaluation activities and provide training to build their capacity.
Celebrate successes and learn from failures, recognizing that both are opportunities for growth. Share evaluation findings widely and use them to inform future actions. By cultivating a culture of evaluation, you can create a resilient and adaptive organization that achieves meaningful, lasting impact.
Need Help with Your Evaluation Strategy?
With a thoughtful evaluation plan in place, you'll not only gain valuable insights into your impact but also strengthen your ability to adapt, grow, and tell your story—ensuring that every step you take brings you closer to fulfilling your mission.
For a deeper dive into how to create an effective evaluation plan, consider exploring our online course, Powerful Evidence: Evaluation for Non-Evaluators. This course provides the tools and insights you need to develop a comprehensive evaluation strategy tailored to your nonprofit’s mission. Don’t miss out on the opportunity to enhance your organization’s impact.