Evaluating a Nonprofit Health Index as a Policy Tool

Abstract

This paper examines possible ways to reduce and synthesize information regarding the health of the U.S. nonprofit sector, exploring how a national "Nonprofit Health Index"might inform policymakers and the public by illuminating key indications of the continuing sustainability of the sector. The paper draws on the experiences of producing the National Arts Index. The paper examines the overall construct of nonprofit health, suggests an impact model based on the Balanced Scorecard, and explores the appropriate level of analysis. The challenges in resolving the nature of the nonprofit health construct make a national index impractical, but policy indexes targeted at locales and industries are more likely to benefit policymakers and inform the public.