The goal of nonprofit work is to impact the stories of human beings. Every nonprofit has a “mission” to influence a specific set of human stories. If we’re going to understand impact, we have to consider how it occurs within the complexity of narratives. We have to listen to the organization’s beneficiaries and ask questions that go deeper than surface-level metrics.

Though most charities have websites that paint themselves as the sole hero, the reality is that every charity exists within a web of institutions which includes other charities, government agencies, churches, and businesses. The most impactful charities put the mission first as they navigate relationships within that ecosystem. This often looks like a posture of open-handed generosity towards like-minded organizations.

Too often, people evaluate charities based on inputs (How much money do they raise?) or outputs (How many people do they serve?). Instead, we should evaluate charities based on outcomes: What evidence do they have for stories of life change? Effective charities measure outcomes so that they can have confidence that they are positively impacting life stories. They are transparent about their measuring methodology and have high standards for their data.

Organizational health is a result of strong leadership and a life-giving culture, not just whether the charity can check the box that they have an independent Board. Assessing organizational health requires interviewing staff members and paying attention to metrics like turnover and salaries. While some donors reward charities for low salaries, this could be a red flag that the organization will not be able to hire and retain talent.