| Description |
This project proposes a model for performance measurement in nonprofit organizations. The model integrates two innovative management accounting principles. I assess the model's utility via a case study of the St. Vincent de Paul Center, a human service organization located in Salt Lake City, Utah. I conclude that the model provides a simple, yet effective paradigm for measuring performance in nonprofit organizations. This project responds to a critical issue in today's nonprofit sector. The nonprofit organization is often unable to define and measure its performance. It frequently lacks tools for monitoring the quality of its daily operations, measuring its progress in achieving long-term goals, and assessing its value to clients and community. While many scholars have explored strategies for evaluating organizational performance, few have suggested practical measurement systems. Even fewer have considered accounting principles as a basis for such systems. The accounting principles featured in this project offer a paradigm for performance measurement in nonprofit organizations. These principles are based on Critical Success Factor analysis (CSF) and Activity-Based Costing (ABC). The "CSF-ABC paradigm" described in this project is a process for developing simple, effective measurement systems in human service organizations. I applied the CSF-ABC paradigm to the St. Vincent de Paul Center, which offers daily meals and other critical services to homeless and disadvantaged individuals. I generated a computer system for measuring the quality of the Center's daily operations, its progress in achieving long-term goals, and the value of its services to clients and; community. The result is a simple, effective tool for performance measurement. It will assist the Center's efforts to demonstrate accountability to community members, cultivate; community support, and achieve its mission. My case study of the St. Vincent de Paul Center establishes the utility of the CSFABC paradigm. I conclude that the paradigm may help other human service organizations develop performance measurement systems. Moreover, this project should encourage all forms of nonprofit organizations to recognize the value of accounting as a framework for performance measurement. |
