Why should you assign a number to impact?

Rethinking "Return on Investment" for Non-Profits

In the non-profit world, thinking about "Return on Investment (ROI)" can feel a little strange. After all, isn’t ROI something businesses only talk about? But this idea actually highlights a bigger issue for impact investors. These days, funding isn’t just about handing out money for a good cause; it’s about investing in something meaningful—something that shows real, measurable outcomes tied directly to an organization's mission.

Funders, whether they're individuals or big organizations, care about where their money goes. They want to see how their investment is making a difference, not just in feel-good terms but with actual, tangible results. It's not just about spending less—it’s about showing how those activities align with long-term goals and the mission.

As donors and stakeholders become more informed and savvy, SEO executives and their financial teams have a bigger responsibility than ever. It’s not enough to just balance the books. The numbers on a page often don’t tell the whole story. Too many non-profits focus on minimizing operational expenses—showing that less than 10% of spending goes to overhead—as a sign of good stewardship. But honestly, this can be misleading. When you run things on a razor-thin budget, you’re often ignoring the realities of long-term sustainability. Otherwise, organizations might just be painting a picture that is a long way from the organizational reality.

So, what’s the solution? SEO leaders need to use real financial data to tell the real story. Instead of just showing how little they spend, they need to show how smart investments lead to long-term impact. The goal is to shift the focus from simply cutting costs to understanding the true cost of achieving the mission. It’s about making room for growth, developing infrastructure, building capacity, so that the organization is equipped to thrive—not just survive.

In the end, strategic finance isn’t just a tool for planning—it’s a whole way of thinking. It helps non-profits stay focused on the big picture, even while managing the day-to-day details. It keeps everything aligned with the mission, making sure that every dollar is put to work where it matters most. This is why connecting dollars with impact is a noble and worthwhile endeavor.