This chapter explains the concept of needs assessment and the relationship between the individual and the community. It identifies the different steps involved in conducting a needs assessment and shows how needs assessment can contribute to the financial sustainability of a nonprofit organization. The chapter emphasizes how financial sustainability is rooted in the investigation and analysis of the needs of a target community. It discusses the theories about the needs-assessment process, as well as action steps toward the development of a community needs-assessment report. The chapter explores facets of financial needs-assessment of a nonprofit that can help chart a course to further the vision and mission statements. It helps the readers to learn how to use primary and secondary data to conduct a targeted needs assessment that is linked to the financial sustainability of a nonprofit organization.
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This chapter defines the concept of program evaluation and also defines the term ‘logic model’. A program evaluation design is a document outlining principles and procedures to assess the achievement of a program’s goals. The logic model is one of the most common program design frameworks used in program evaluation. Program evaluation can be a needs assessment, a formative or process evaluation, a summative or outcomes evaluation, or an impact evaluation. The chapter identifies the items in a logic model and explains the benefits of a logic model for a nonprofit organization. It describes the process used to conduct a program evaluation and also explains the term ‘performance measurement in a nonprofit organization’. Program evaluation includes performance measurement to assess overall organizational effectiveness. The chapter examines the relationship between program evaluation and financial sustainability.