April 25, 2008

Book Review - ROI for Nonprofits

ROI for Nonprofits: The New Key to Sustainability
Tom Rasler
HG 4028 .C4 R35 2007

This book addresses two main themes. First, it discusses how nonprofit organizations raise money. Rasler looks at this fundraising income as investment by stakeholders. He then discusses how organizations can demonstrate a return on investment (ROI) and give value back to their investment. Writing in financial language, Rasler offers several ways to calculate ROI and stresses the importance of communicating this value back to the investors. Finally, he presents numerous case studies that exemplify how to put the concept of ROI to work sustaining the organization. The parallels between nonprofit organizations and government agencies are not perfect, but the idea that government organizations should also demonstrate ROI and value to their customers and to the citizenry is one worth considering.