登录查看更多内容

How can you use variance analysis to evaluate NGO performance?

由人工智能和领英社区提供技术支持

Variance analysis is a tool that compares the actual results of an organization with its planned or budgeted performance. It helps to identify the sources and causes of deviations from the expected outcomes and to take corrective actions. For non-governmental organizations (NGOs), variance analysis can be a valuable way to evaluate their performance in terms of achieving their mission, managing their resources, and meeting their stakeholders' expectations. In this article, you will learn how to use variance analysis to evaluate NGO performance in four steps.

在这篇协作文章中查找专家回答

由社区从 1 条内容中精选。了解更多

1 Step 1: Define the objectives and indicators

The first step is to define the objectives and indicators that you want to measure and evaluate. These should be aligned with the mission and vision of your NGO, as well as the needs and expectations of your beneficiaries, donors, partners, and staff. You can use a logical framework or a theory of change to map out the inputs, activities, outputs, outcomes, and impacts of your NGO's interventions. Then, you can select appropriate indicators that can quantify or qualify your results and progress. For example, you can use indicators such as number of beneficiaries served, quality of service delivery, cost per beneficiary, satisfaction rate, or social return on investment.

添加您的观点

2 Step 2: Prepare the budget and the actual data

The second step is to prepare the budget and the actual data for the indicators that you have defined. The budget is the planned or expected performance that you want to achieve within a given period, usually a year. The actual data is the realized or observed performance that you have achieved within the same period. You can use various sources of data, such as financial statements, reports, surveys, or evaluations, to collect and compile the actual data. You should ensure that the budget and the actual data are consistent and comparable in terms of scope, format, and assumptions.

添加您的观点

3 Step 3: Calculate and analyze the variances

The third step is to calculate and analyze the variances between the budget and the actual data. The variances are the differences or gaps between the planned and the realized performance. You can use different methods to calculate the variances, such as percentage, ratio, or absolute terms. You can also classify the variances as favorable or unfavorable, depending on whether they indicate a positive or a negative deviation from the budget. For example, a favorable variance means that the actual performance is better than the budgeted performance, while an unfavorable variance means the opposite. After calculating the variances, you should analyze them to understand their causes and implications. You can use different techniques to analyze the variances, such as trend analysis, ratio analysis, or variance decomposition.

添加您的观点

Prateek Babbar

Manager at Buck, A Gallagher Company | Financial Operations| Revenue Cycle Management | Financial Reporting and Analysis
举报内容
When analyzing the variance and categorizing it as favorable or unfavorable, the determining metrics for an NGO can be very different. For instance, exceeding the budget for child education by 20% might seem unfavorable, but if it leads to covering 30% more beneficiaries than expected, the variance can't be simply labeled as unfavorable one. Similar scenario and related complexities can arise in both directions.

已翻译

赞

4 Step 4: Report and act on the variances

The fourth step is to report and act on the variances that you have calculated and analyzed. You should communicate the results and findings of your variance analysis to your relevant stakeholders, such as your board, management, staff, donors, partners, or beneficiaries. You should use clear and concise language, charts, graphs, or tables to present and explain the variances and their causes and effects. You should also provide recommendations and suggestions on how to improve your performance, address the issues, or capitalize on the opportunities that the variances reveal. You should also monitor and follow up on the actions that you or your stakeholders take to close the gaps or enhance the results.

添加您的观点

5 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

添加您的观点

Corporate Accounting

+ 关注

给文章评分

我们借助人工智能创建了此文章。您认为这篇文章怎么样？

很棒不太好

举报此文章

查看全部

How can you use variance analysis to evaluate NGO performance?

1

2

3

4

5

1 Step 1: Define the objectives and indicators

2 Step 2: Prepare the budget and the actual data

3 Step 3: Calculate and analyze the variances

4 Step 4: Report and act on the variances

5 Here’s what else to consider

Corporate Accounting

给文章评分

感谢您的反馈

更多Corporate Accounting相关文章

更多相关阅读内容