What Funders Want The Ultimate Guide to Communicating Outcomes, Building Trust, and Securing Revenue Funders Are Making Decisions Based on Data—and Facing Their Own Pressures Nonprofits have always operated with heart. Stories ofFunders are also under pressure. They’re not only lives changed and communities improved are at the corestewards of capital—they are stewards of public trust. of what many organizations share with donors. But whatFunders must justify their investments to boards, exter- once passed for compelling communication is no longer nal stakeholders, and communities. They are responsi- enough to move money. Funders have raised the bar.ble for demonstrating accountability, especially in times of economic uncertainty. When donations shrink, and Whether it’s a foundation board, a government funder, public scrutiny grows, funders need solid data to defend or a major donor who built their wealth through evi- their decisions. dence-based decisions, the question is the same: what outcomes are you producing? THREE RESPONSIBILITIES FUNDERS OFTEN CARRY INCLUDE:Responding to scrutiny.Making tough choices Demonstrating accountability. in a weak economy.Funders are accountable for Funders must show that theirhow their resources are distributedDuring periods of economic con-giving leads to outcomes—not justand must be able to answer ques- traction, funders face pressure to activity—and that their granteestions from boards, regulators, and prioritize investments. Clear data are meeting expectations.the public.helps them decide where dollars will have the greatest effect.With that in mind, your communication with funders should aim to answer six key questions, whetheror not they ask them directly: 1. What services are you actually providing? provide hard data risk losing not only visibility but2. What results are you achieving? viability. Funders want more than good intentions.3. What data or evidence can you share? They expect follow-through, clarity, and outcomes4. What program improvements are needed? that can be tracked, quantified, and reported.5. What support would be helpful? The good news is that communicating your out-6. How will you sustain the program? comes doesn’t require a large team, expensive This guide is built on a simple premise: organizations consultants, or a brand overhaul. It requires discipline, that communicate measurable, meaningful results structure, and a consistent way of speaking about are the ones that stand out. Those that struggle to your work. What Funders Want Funders Want Evidence, Not Assumptions Funders do not expect you to solve every problem. They do expect you to define what success looks like and ex- plain how you’ll measure progress toward it. If your proposal says you’ll serve 500 people, they want to know what happens after those services are delivered. Do the participants maintain employment? Are families still housed six months later? Did students graduate or improve their test scores? When you apply for funding, your organization is compet- ing with others making similar claims. What separates the winners is the ability to show not just that services were delivered, but that they made a measurable difference. Funders have their own goals to meet. Private foundations have boards to report to. Corporate donors are account- able to stakeholders like employees, customers, and shareholders. Public agencies must comply with perfor- mance reporting mandates. When you provide reliable data, you make their job easier. Aligning your results with their priorities makes it easier for them to justify the investment. Telling them how many people you served will not move them unless you also show what changed as a result. What Funders Want Clarity About Outcomes Builds Trust The terms “output” and “outcome” are often confused. to clients after your services end. That might involve Outputs are counts of activities. Outcomes are the effects follow-ups, surveys, or collaborative data sharing. It may of those activities. Think of outputs as what your organi- also require technology that simplifies this work. zation did. Outcomes are what changed for the people orFunders aren’t just interested in what’s measurable. systems you aimed to help.They’re interested in what’s meaningful. Be sure your out- To collect this type of data, organizations need more come indicators reflect your mission, your goals, and the than attendance logs. You need to track what happens specific populations you serve.MANY ORGANIZATIONS HAVE LONG REPORTED OUTPUTS: Those numbers matter, but they don’t answer the bigger question. Did the clients improve? Did they reach a meaningful goal? Funders want to see progress over time.NumberNumber of Number ofThey want to fund programs that are pro-of meals counselingstudents ducing lasting, positive results. The only waydistributed sessions enrolled to show that is through outcome data. HERE ARE A FEW EXAMPLES OF HOW TO FRAME OUTCOMES: PercentagePercentage Reduction in Increase Rate of long-of clientsof participants recidivism rates in readingterm recoverywho secured who maintained among justice- comprehension for individualsemploymenthousing for involved youth among 3rd completingwithin 90 daysone year graders treatment What Funders Want A Simple Formula That Speaks Funders’ Language Cost per success is one of the most persuasive metrics a nonprofit can pres- ent. It answers a funder’s core question: what does it take to achieve a mean- ingful outcome?LET’S WALK THROUGH THE FORMULA: Track the number Divide the total Identify a clear of individuals who Total your program cost by the outcome (e.g., em- achieved that out- expenses for thenumber of peopleployment, graduation,come over a period same period. who achieved the housing retention). of time. outcome. Desired Number who achievedProgram Cost per Outcomestable housing budget success Achieve Stable 72 out of 120 $300,000 $300,000 ÷ 72 = $4,167Housing Now compare that to a report that simply says, “We served 120 people.” The second statement is easy to overlook. The first is a value proposition. When you use cost per success, you are speaking in terms familiar to funders. Many come from finance, business, or policy backgrounds. They are trained to assess cost-benefit ratios and efficiency. This approach also positions your organization as performance-oriented. It shows you are aware of the investment required to deliver results and that you are tracking performance for ongoing improvement. What Funders Want Budget for Measurement, Don’t Apologize for It Impact measurement should be in your program budget, not separated out as an extra or explained away as over- head. It is part of delivering services responsibly. Many funders expect to see a line item for data systems, performance management, or evaluation. Some even require it. Still, many nonprofits hesitate to include it, thinking it makes their proposals look more expensive. This is a mistake. Excluding impact infrastructure from your budget sends the wrong message. It implies that either you’re not measuring outcomes or you expect to do it without the proper tools. INCLUDE COSTS SUCH AS: Outcome tracking software Staff time to analyze and report on outcomes Training to support consistent data collection Consultants for evaluation design or survey developmentIf you are applying to a funder who has never paid for in- frastructure before, consider a capacity-building proposal. Many community foundations and regional intermediaries offer support for organizations that want to improve sys- tems, technology, and evaluation capacity. Don’t wait to be asked for these numbers. The more you normalize them in your budget, the more credible your request will be. What Funders Want Ask Better Questions, Build Better Relationships Too often, organizations approach funders with a polished narrative and leave no room for dialogue. But the stron- gest relationships are built on curiosity and openness. If you want a funder to see you as a partner,not just an applicant, ask questions that invitehonesty: What types of reporting have been most useful to you from grantees? Are there data points you wish more nonprofits would track? How do you define success for the programs you fund? What would a high-quality outcome report look like to you?Asking these questions shows that you care about shared goals. It also signals that you are not just chasing dollars, but building an intentional funding strategy. The strongest funder relationships are not based on one- time proposals. They are built through ongoing exchange: progress updates, reflection on lessons learned, and a willingness to adapt. What Funders Want Make Outcome Data Part of Daily Practice A spreadsheet that lives in one person’s inbox is not a data system. Nor is a static year-end report that gets filed away after a board meeting. Funders are Checklist: How to Communicate looking for systems that support real-time learning with Funders About Your Impact and action. Use this checklist before your next proposal, update call, or site visit: To build that kind of system, start withDefine the specific outcomes you are tryingthese principles:to achieve Collect data as part of regular program Track outcome data, not just activities or attendance activities, not as a separate task Calculate cost per success for key programsAlign outcomes with the funder’s mission and goalsMake sure frontline staff understand what Budget for impact measurement as a program costis being collected and why Ask funders about their definition of success and Review data with program teams monthly preferred reporting formats or quarterlyCollect data continuously and review it internallyReport outcomes regularly to funders in languageBuild dashboards that show outcomes by they understandlocation, program, or demographic group Share challenges and lessons learned—not Use those dashboards in staff meetings, just victories leadership discussions, and board updates Invite funders into ongoing learning andimprovement processes If your team can check most of these boxes, you’re The goal is to make data visible, useful, and shared.already ahead of the curve. When staff can see the impact of their work, mo- tivation improves. When leadership has access to outcome trends, decision-making improves. When funders receive real-time data, confidence improves. CONTACT US If you are a funder, nonprofit leader, evaluator, or public agency looking to improve how you track and share outcomes, we want to work with you. Visit: www.sureimpact.com Email: info@sureimpact.com ©2025 SureImpact, Inc.