How to Calculate or Measure Benefits for non Profit Projects?
When I do a project for social interests, how can I calculate benefits as part of a cost benefits analisis?
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Welcome to the Cost-Benefit Analysis best practices. The topic being discussed here is: "How to Calculate or Measure Benefits for non Profit Projects?".
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Samantha Wood, Mauritius
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Cost-Benefit Analysis for non Profit Projects
It depends on the nature and context of the project itself. However, consider how to measure profits with principles based on the objectives of the project.
For example, if your focus is on empowerment of a marginalised community then to what extent have they been empowered, has quality of life been improved if so, in what way.
Measuring the CBA of such an organisation cannot be done in financial terms, because this type of organisation is not focused on financial return on investment. Its focus is on eradicating a social problem.
One thing to also note, is that the term 'non-profit organisation' should be termed as 'more than profit organization'! These types of organisations do make profit, the difference being is that the profit is used to reinvest into solving a social problem.
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