The importance of performance assessment in local government decisions to fund health and human services nonprofit organizations

In times of fiscal crisis, demand for health and human services increases while revenues shrink, causing funders to focus more intently on identifying the most successful organizations in which to invest scarce resources. This research grew out of interest in enhancing performance assessment of nonprofit organizations expressed by local government managers. A survey of Alliance for Innovation Members explores two primary research questions: 1) what is a successful nonprofit; and 2) what type(s) of performance assessment tools are the most useful. The results strengthen our understanding of what information city and county managers want and why they prefer certain evaluation tools.