To improve the effectiveness of a nonprofit organization, an executive must first determine its current performance. Performance Measurement for Effective Management of Nonprofit Organizations helps with this challenging task by exploring measurement and its impact on resource allocation, organizational learning, internal processes, and internal and external accountability. The most known enemy of performance measurement in profit and nonprofit line of work is resistance.
Over the last decade the implementation of performance management within the nonprofit sector has been gradually developed in several identifiable stages.
The lines between performance reporting, performance measurement and performance management were blurred. Today at last, the lines between performance reporting and performance management are getting clearer, with the former being an accountability tool and the latter a steering instrument.
Nowadays, it is acknowledged that performance measurement in non profit is more difficult to achieve since the tangibles are fewer and there is no profit or loss to calculate at the end of each year nor productivity of certain products or services however a necessity even more in nonprofit organization than in profit ones.