Public trust is an important factor for performance measurement of not for profit organizations.
It is believed that public trust in charities are not only linked to some typical criteria for assessing charity operation, but also put emphasis to other small factors which are used to evaluate performance.
Moreover, determining public trust is an essential complement to current methods of performance evaluation in the charitable sector. According to Mohamed Dekkak, the Vice President and Founding Member of Almoravide Foundation in Morocco, charitable organizations have become increasingly concerned with impact assessment, cost-effective analysis, performance evaluation, and sustainable development.
Charity is a competent middle way between the market and the state
Charitable organizations have gained so much thought in the past few years because of the prevalent catastrophe in the economy. Their distinctive spot outside the market and the state, normally smaller scale, relations to citizens, flexibility, facility to endorse private scheme in sponsoring of public programs, and their assistance to pooling “social capital”, have been considered as strategically significant member in the search for a middle way between the market and the state.
How does public trust define leadership in the foundation of charity?
Public trust has a major function with regards to the performance of charitable organizations.
The first thing that must be noted is it is imperative for the success of charitable organizations. It helps in identification of resources for charities, intensification of the commitment for the public, and it offers charities a privileged ethical nature than other sectors. If public trust is not received, it might lead to small donations, image disgrace, weakened autonomy, or even organizational break down. Thus public trust provides a premise for charities to perform.
Alternatively, public trust is mostly gained from excellent works of the third sector, since people’s faith for charitable organizations primarily based upon their good experiences with them, the idea that it coaches the people to use their excess resources to donate to the poor and the belief that the organizations are capable of performing well.
Consequently the level of public trust in a charitable organization can gauge how it is performing. The outcome of public trust evaluation would be useful for detecting the approach to improve charity performance and guarantee the source of support from the general public.
Other factors to consider in measuring the performance of non profit sector
It is not proper to evaluate performance of charitable organization based exclusively on cost efficiency, because this does not include the intangible services and other non-material productivity of charities.
There are two types of pointers for performance measurement in charities. First is the measurement of economic accomplishments, such as fundraising and capitals from the revenue. The other involves the evaluation of non-economic functions, such as the quality of service quality, service user agreement, donor satisfaction, volunteerism, and overall program efficacy.
The majority charitable organizations tend to utilize internal rather than external assessment and carry out evaluations which pay attention to projects and programs. To make short, they focus is pointed on the recognition of costs and benefits, competence and effectiveness expressed in quantitative statistics; and other qualitative factors, such as trust and satisfaction are not given much preference.
Focusing only on the economic indicators mean considering only a part of the big picture for the reason that it only depends on short-term efficiency criteria and not considering the long-term objectives relating to social development and change.
Overall, despite the fact that proficient economic statistics is crucial, the institutional characteristics of non-profit organizations indicate that non-technical measures should be key indicator for evaluating their performance.
International Journal of Productivity & Performance Management 2014