Homelessness is a growing issue in the U.S. A staggering 650,000 Americans were homeless on a single night in January 2023, as reported by the U.S. Department of Housing and Urban Development.
This means one in every 500 people nationwide is without a home.
In Georgia, the situation has been steadily worsening since 2017. By 2022, the number of people living on the streets or in cars—classified as unsheltered homeless—exceeded those in emergency shelters.
This rising trend has caught the attention of politicians, leading to significant federal funding for local governments and nonprofit service providers. But despite these efforts, the problem persists. Why?
The causes of homelessness are complex, including unemployment, unaffordable housing, and health issues. However, there’s an often overlooked issue: how homeless service providers measure success.
As a professor of operations management, I’ve noticed that many nonprofits prioritize quick fixes over long-term solutions.
The Role of Nonprofits
Nonprofit organizations across the U.S. offer a variety of services to homeless individuals, from shelter and housing to job training and counseling. There are over 12,000 such providers, including more than 50 in the metro Atlanta area alone.
These organizations often share metrics like the number of meals served or beds provided to showcase their success. While these metrics are useful, they don’t necessarily indicate a reduction in homelessness.
They measure outputs—tangible results of activities—rather than impact, which refers to the long-term benefits and changes brought about by those activities.
Unfortunately, it’s rare for homeless service providers to track their success based on whether the people they serve become self-sufficient and are no longer homeless.
This oversight is significant. Business research shows that the way nonprofits measure success directly influences their priorities.
By focusing on case-resolution rates instead of the number of clients served, providers could potentially create a higher social impact.
A Better Approach
So, how can nonprofits measure their impact more effectively? They could start by tracking the sustained outcomes of their services.
This includes the number of individuals who achieve self-sufficiency, the average time required for rehabilitation and job placement, and the starting salaries of those who find jobs with the organization’s help.
Additionally, nonprofits could monitor the percentage of clients who remain employed for over a year, who maintain child custody, or who avoid re-arrest within a year after receiving services.
According to the source, while these goals may seem challenging to measure, some organizations are already doing so.
For instance, Georgia Works has helped over 1,000 individuals exit homelessness. They measure their impact by tracking sustained outcomes, focusing on helping clients achieve self-sufficiency.
Beyond measuring impact, it’s crucial for nonprofits to communicate these metrics effectively to funders, such as government agencies and donors.
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Organizations that focus only on output metrics might appear more productive, even if their work doesn’t have a lasting impact. This could lead to more funding going to less effective organizations.
By prioritizing and standardizing impact measures and clearly communicating them, we can make significant strides in reducing homelessness and building stronger, more resilient communities.