Measured to Death: How Donor Incentives and Impact Obsession Hinder Sustainability in Non-profit Programs
Abstract:
Despite
remarkable progress in performance management and results reporting, many
nonprofit initiatives fail to sustain their outcomes once external funding
ceases. This literature-based study synthesizes secondary global evidence,from
OECD, the World Bank’s Independent Evaluation Group (IEG), ICAI (UK), USAID,
ALNAP, and academic works on adaptive management,to explain why. It identifies
three interconnected drivers of post-funding failure: impact obsession, the
incentive paradox, and institutional burnout. These forces reward short-term,
measurable “impact” while undervaluing the less tangible work of
institutionalization and local ownership. The paper proposes an
endurance-oriented reframing of success, emphasizing sustainability indicators,
incentive realignment, and lean compliance.
References:
[1].
ALNAP, 2022, State of the
Humanitarian System 2022. Active Learning Network for Accountability and
Performance (ALNAP). https://alnap.org/help-library/sohs-2022
[2].
Bamberger, M., Rugh, J., &
Mabry, L., 2016, RealWorld Evaluation: Working Under Budget, Time, Data, and
Political Constraints (3rd ed.). Sage Publications.
[3].
Binnendijk, A., 2011, Results-Based
Management in Development Co-operation: A Review of Experience. OECD Evaluation
and Aid Effectiveness Series, No. 27. OECD Publishing.https://www.oecd.org/content/dam/oecd/en/publications/reports/2009/02/aid-effectiveness_g1gha834/9789264050877-en.pdf
[4].
Center for Global Development (CGD).
2020, Adaptive Results Management: How to Learn While Doing. CGD
Policy Paper 181. https://www.cgdev.org/publication
[5].
Ebrahim, A., 2019, Measuring Social
Change: Performance and Accountability in a Complex World. Stanford
University Press.
[6].
Eyben, R., Guijt, I., Roche, C.,
& Shutt, C., (Eds.). 2015, The Politics of Evidence and Results in
International Development: Playing the Game to Change the Rules? Practical
Action Publishing.
[7].
Honig, D. 2018. Navigation by
Judgment: Why and When Top-Down Control of Foreign Aid Doesn’t Work. Oxford
University Press. https://global.oup.com/academic/product/navigation-by-judgment-9780190672454
[8].
Independent Commission for Aid
Impact (ICAI), 2019, DFID’s Approach to Value for Money in Programme and
Portfolio Management. ICAI. https://icai.independent.gov.uk
[9].
Independent Commission for Aid
Impact (ICAI). 2024, Follow-Up Review of Year 6 Reports. ICAI. https://icai.independent.gov.uk
[10].
Merry, S. E., 2011, Measuring the
World: Indicators, Human Rights, and Global Governance. Current
Anthropology, 52(S3), S83–S95. https://doi.org/10.1086/657241
[11].
Organisation for Economic
Co-operation and Development (OECD). (n.d.). Measuring and Managing Results in
Development Co-operation. OECD Publishing. https://www.oecd.org/en/publications/measuring-and-managing-results-in-development-co-operation_c7762fac-en.html
[12].
Organisation for Economic
Co-operation and Development (OECD). 2021, Development Co-operation Report
2021: Shaping a Just Digital Transformation. OECD Publishing. https://www.oecd.org/en/publications/2021/12/development-co-operation-report-2021_4d1131e9.html
[13].
Organisation for Economic
Co-operation and Development (OECD). 2025, Guiding Principles on Managing for
Sustainable Development Results (Tips, Tools and Insights). OECD Publishing.
https://www.oecd.org
[14].
Organisation for Economic
Co-operation and Development (OECD). 2022, DCD2022:42: Managing for Results,
Institutional Costs and Benefits. OECD Development Co-operation Directorate.
https://one.oecd.org/document/DCD(2022)42/en/pdf
[15].
Power, M., 1997, The Audit Society:
Rituals of Verification. Oxford University Press.
[16].
Ramalingam, B., Wild, L., &
Buffardi, A., 2019, Making Adaptive Rigour Work: Principles and Practices for
Implementing Adaptive Management in International Development. Overseas
Development Institute (ODI). https://odi.org
[17].
The Guardian. 2024, February 28. UK
Accused of Moving Goalposts on Climate Finance Commitments. The Guardian.
https://www.theguardian.com/global-development/2024/feb/28/uk-accused-of-moving-goalposts-on-climate-finance-commitments
[18].
United Kingdom Government. 2024, Government
Responses to the Independent Commission for Aid Impact (ICAI) Reports. https://www.gov.uk/government/collections/government-responses-to-the-independent-commission-for-aid-impact-icai-reports
[19].
United States Agency for
International Development (USAID). 2022, Local Capacity Strengthening Policy. USAID
Policy Framework. https://usaid.gov
[20].
World Bank Independent Evaluation
Group (IEG). 2022, Results and Performance of the World Bank Group 2022 (RAP). World
Bank Group. https://ieg.worldbankgroup.org
[21]. World Bank Independent Evaluation Group (IEG). 2020, Transformative Engagements: Sustaining Results After Project Closure. World Bank Group. https://ieg.worldbankgroup.org
