Many grantmakers consider evaluation to be a critical component of their grants program. Creating an effective evaluation plan may present a challenge for some nonprofit managers, so it is generally recommended that an organization begin to think about evaluation very early in the program planning process. Sometimes the benefits or desired outcomes of a program may seem intangible, hence not readily measured. For example, how would you measure whether or not the quality of life has improved for your targeted population as a direct result of participating in an organization's programs?
Several Internet resources that provide information on program evaluation and measurement are:
The American Evaluation Association
Innovation Network
Nonprofit Managers Library: The Basic Guide to Program Evaluation
United Way: Resource Network on Outcome Measurement
You may also want to refer your grantees to the materials cited below, which can be found in Foundation Center libraries.
Ferguson, Jacqueline (ed.) The Grantseeker's Guide to Project Evaluation. 2nd ed. Alexandria, VA: Capitol Publications, 1997.
"Three Funders: Process or Outcome?" Foundation News & Commentary, vol. 37 (March-April 1996): p. 46-8.
United Way of America. Measuring Program Outcomes: A Practical Approach. Alexandria, VA: United Way of America, 1996.
For your own work as a grantmaker, you may be interested in the work of Grantmakers for Effective Organizations.