During the Association of Fundraising Professionals (AFP) International Conference last week in Baltimore, the outgoing Chair of AFP offered a new definition of ROI: Results, Outcomes and Impact. While the words themselves can mean different things to different people, the message was clear.

Donors want more than just a relationship with an organization and moreover, they want more than a testimonial or a picture. They want to know that their gift, or investment, has produced a tangible and meaningful result for the organization and/or its beneficiaries. This is certainly the case for more and more institutional funders, including foundations and corporations, and it is increasingly true for individual donors. 

A strong example of an organization that has used its results to convince funders to make an investment is highlighted in an article in this week’s Chronicle of Philanthropy. The Family Independence Initiative provides direct cash support to families who are considered “working poor” and is producing impressive results for the families engaged in the initiative, including increased earnings, decreased in debt and improved academic results for children. The article notes that it took years for the organization to convince funders to support the somewhat unorthodox approach because it did not provide a specific service or fit a particular model that foundations would normally support. Armed with results, the organization is positioned to leverage significant new resources to support its work from funders that value the results, rather than focus on the program strategy.