1. Return on Investment Nelson Soler MBA/MS/EDFP/ASFP General Themes: Understanding our Nonprofit Framework Importance of ROI Calculating ROI Framing the ROI Message 1 Multicultural Entrepreneurial Institute Inc., Nelson Soler (c) 2015

2. Module 1: Framework-Nonprofit Reality Too Many Increased Regulation Higher Competition Funding  The Nimble Nonprofit Shift on Focus (More like a business)  Demand for Accountability and Transparency  Imperative of Sustainability 2 Multicultural Entrepreneurial Institute Inc., Nelson Soler (c) 2015

3. Too many

4. Demand for funds continues to increase Funding is shrinking

5. Good intentions are no longer enough

7. Transparency

8. Donor Base Expectations Shift Multicultural Entrepreneurial Institute Inc., Nelson Soler (c) 2015 8

9. M2: Importance of ROI Have you heard these phrases? Do more with less? Why is your overhead and/or indirect cost too high? What value will I get for making this donation? Or How will the money be used? Why should I donate to you versus another organization that do the same? Have you quantified social impact? What are your measurements? Or what is your evaluation plan? 9 Multicultural Entrepreneurial Institute Inc., Nelson Soler (c) 2015

10. All these questions are directly or indirectly referring to your Return on Investment! 10 Multicultural Entrepreneurial Institute Inc., Nelson Soler (c) 2015

11. Importance of ROI Key to Evaluation and Measurement Needed for  Sustained funding (public sector and some foundations)  Social impact quantification  New funding ( private individuals, corporations) Important for Organizational Branding and Communication  Compelling Messaging  Takes the subjectivity out of our work 11 Multicultural Entrepreneurial Institute Inc., Nelson Soler (c) 2015

12. Challenges for ROI measurement in the Nonprofit Sector Nonprofit traditional culture Capturing true costs Actual Calculation 12 Multicultural Entrepreneurial Institute Inc., Nelson Soler (c) 2015

13. Calculating ROI Resources Case Study 13 Multicultural Entrepreneurial Institute Inc., Nelson Soler (c) 2015

14. M2: ROI and Evaluation Lets visit our evaluation models Linear Open Model 14 Multicultural Entrepreneurial Institute Inc., Nelson Soler (c) 2015

15. Open System Model Nagajaran and Vanheukelen 1997 Needs Objectives InputsActivitiesOutput Actual Outcomes Program

16. Open System Model Nagajaran and Vanheukelen 1997 Needs Objectives InputsActivitiesOutput Actual Outcomes Program Technical Efficiency (aka Productivity) Adequacy Relevancy Effectiveness Cost Effectiveness Cost Benefit Program Effectiveness

17. Check point What value you notice in applying the different models? Where does ROI fit? Nelson Soler©2010 for UWM School of Continuing Education

18. Where does ROI fits? You are already calculating it but you are unaware you are Concepts  Social Impact  Effectiveness and Efficiency  Cost-Impact Analysis 18 Multicultural Entrepreneurial Institute Inc., Nelson Soler (c) 2015

19. Social Impact Multicultural Entrepreneurial Institute Inc., Nelson Soler (c) 2015 19

20. Effectiveness and Efficiency Multicultural Entrepreneurial Institute Inc., Nelson Soler (c) 2015 20

21. Cost-Impact Analysis Multicultural Entrepreneurial Institute Inc., Nelson Soler (c) 2015 21

22. Module 3- ROI and Sustainability Fundraising and Sustained Funding Trends Need for articulating social impact Transparency Accountability SUSTAINABILITY 22 Multicultural Entrepreneurial Institute Inc., Nelson Soler (c) 2015

23. Understanding your Donors Traditional Feel Good Tax Saver Impact Seeker Entrepreneur 23 Multicultural Entrepreneurial Institute Inc., Nelson Soler (c) 2015

24. Module 4- Branding and Communications Framing the ROI Message Unique Proposition to our Communities Stakeholder sustained engagement New Stakeholders involvement Employee Empowerment 24 Multicultural Entrepreneurial Institute Inc., Nelson Soler (c) 2015

25. Exercise Crafting a 60 second message Multicultural Entrepreneurial Institute Inc., Nelson Soler (c) 2015 25

26. Resources Some non academic sources to generate discussion: http://www.volunteerhub.com/blog/return-on-investment-for-nonprofits/ http://philanthropynewsdigest.org/off-the-shelf/roi-for-nonprofits Example of federal agency requirement: http://www.fgdc.gov/grants/ReportFormats/ROIReports Academic: http://mdi.missouristate.edu/assets/mdi/Training_ROI_Non_Profit_Sect or_dissertation.pdf http://scholarworks.umass.edu/cgi/viewcontent.cgi?article=1021&contex t=gradconf_hospitality Book: ROI for Nonprofits: The New Key to Sustainability By Tom Ralser, 2007 Multicultural Entrepreneurial Institute Inc., Nelson Soler (c) 2015 26

27. Questions soler@multiculturalinstitute.com 414-383-4633 Multicultural Entrepreneurial Institute Inc., Nelson Soler (c) 2015 27