Policy analysis and the nonprofit sector

Abstract

This chapter explores the use of policy analysis by nonprofit organizations, from its beginnings in the late 19th century to its significant expansion in the last 30 years. While policy analysis in nonprofits began as an extension of advocacy efforts for particular reform agendas, scarce funding, professionalization of the nonprofit workforce, and greater emphasis on accountability have increased the use of outcome-oriented policy analysis approaches including the theory of change, logic models and log-frames, and collective impact or social return on investment approaches. Nonprofits have also begun to use the related process of strategic planning to identify benchmarks and targets and to structure periodic assessment. Nonetheless, nonprofits continue to undertake policy research and to use policy analysis to influence public policy in ways that advance their mission and goals. As the use of policy analysis in nonprofits expands, one challenge will be to take a broad view of the potential outcomes of nonprofits to ensure the impact of nonprofits is adequately assessed.