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NCRP Report Confirms Return on Investment in Advocacy
New research from the National Committee for Responsive Philanthropy (NCRP), a national foundation watchdog organization, concludes that public policy work is an effective strategy to address societal issues. A majority of grantmakers have traditionally steered away from funding public policy, grassroots advocacy, and other civic engagement activities. However, studies continue to show that advocacy work is vital to advancing a nonprofit organization's mission. The NCRP finding that there is such a great return on investment in advocacy could resonate with funders.
NCRP's Grantmaking for Community Impact Project seeks to increase philanthropic resources for advocacy, organizing, and civic engagement to particularly benefit communities most in need. An objective of the project is to appease funders' concerns by featuring the positive impact communities have experienced because of support for nonprofit advocacy. The project's reports use both quantitative and qualitative methods to gauge the positive returns from civic engagement.
NCRP tracked advocacy and organizing impacts, funding, civic engagement indicators, and the groups' progress. A return-on-investment calculation was made by dividing the aggregate dollar amount of successes, or desired outcomes, by the aggregate dollars invested in advocacy and organizing. The report found that every grant dollar spent on advocacy produced a $138 return on investment. This data led to the report's conclusion that it is highly beneficial for nonprofits and foundations to work together, and it is especially effective for these groups to become involved in public policy advocacy.
The report lays forth recommendations for foundations, particularly those facing tough economic situations. Foremost among the recommendations is that funding for advocacy, community organizing, and civic engagement should be increased. Board members and donors should also be conscious of how advocacy can help an organization achieve its goals, according to the report.