{"id":14971,"date":"2026-04-15T19:23:07","date_gmt":"2026-04-15T19:23:07","guid":{"rendered":"https:\/\/gc.gcdev3.com\/mcn\/blog\/?p=14971"},"modified":"2026-06-04T20:35:58","modified_gmt":"2026-06-04T20:35:58","slug":"benchmarking-satisfy-your-board-and-gain-a-competitive-advantage","status":"publish","type":"post","link":"https:\/\/gc.gcdev3.com\/mcn\/blog\/benchmarking-satisfy-your-board-and-gain-a-competitive-advantage\/","title":{"rendered":"Benchmarking: Satisfy Your Board and Gain a Competitive Advantage"},"content":{"rendered":"<p>Stop us if you\u2019ve heard this one before (from your Board of Trustees or Finance Committee): \u201cI wish there was a way we could benchmark ourselves against our competitors.\u201d<\/p>\n<p>Have you ever wrestled with how to benchmark? Or struggled to identify what the Board wants to measure? Organizations can fall short on implementing effective methods to benchmark accurately.\u00a0 The good news? With a planned approach, you can overcome traditional obstacles and create tools to increase efficiency, improve operations and reporting, <i>and<\/i>\u00a0maintain and monitor a comfortable risk level. All of this can help create\u00a0a competitive advantage \u2014 and it\u00a0isn\u2019t as hard as you might think.<br \/>\nEven with a structured process, remember that benchmarking data has pitfalls, including:<\/p>\n<ul>\n<li><b>Peer data can be difficult to find.\u00a0<\/b>Some industries are better than others at tracking this information. Some collect too much data that isn\u2019t relevant, making it hard to find the data that is.<\/li>\n<li><b>The data can be dated.<\/b>\u00a0By the time you close your books for the year and data is available, you\u2019re at least six\u00a0months into the next fiscal year. Knowing this, you can still build year-over-year trending models that you can measure consistently.<\/li>\n<li><b>The underlying data may be tainted.<\/b>\u00a0As much as we\u2019d like to rely on financial data from other organization and industry surveys, there\u2019s no guarantee that all participants have applied accounting principles consistently, or calculated inputs (e.g., full-time equivalents)\u00a0in the same way, making comparisons inaccurate.<\/li>\n<\/ul>\n<p>Despite these pitfalls, benchmarking is a useful tool for your organization. Benchmarking lets you take stock of your current financial condition and risk profile, identify areas for improvement and find a realistic and measurable plan to strengthen your organization.<\/p>\n<p>Here are four steps to take to start a successful benchmarking program and overcome these pitfalls:<\/p>\n<ol>\n<li><b>Benchmark against yourself.<\/b>\u00a0Use year-over-year and month-to-month data to identify trends, inconsistencies and unexplained changes. Once you have the information, you can see where you want to direct improvement efforts.<\/li>\n<li><b>Look to industry\/peer data.<\/b>\u00a0We\u2019d love to tell you that all financial statements and survey inputs are created equally, but we can\u2019t. By understanding the source of your information, and the potential strengths and weaknesses in the data (e.g.,\u00a0too few peers, different size organizations and markets, etc.), you will better know how to\u00a0use it. Understanding the data source allows you to weigh metrics that are more susceptible to inconsistencies.<\/li>\n<\/ol>\n<ol>\n<li><b>Identify what is important to your organization and focus on it.\u00a0<\/b>Remove data points that have little relevance for your organization. Trying to address too many measures is one of the primary reasons benchmarking fails. Identify key metrics you will target, and watch them over time. Remember, keeping it simple allows you to put resources where you need them most.<\/li>\n<\/ol>\n<ol>\n<li><b>Use the data as a tool to guide decisions.<\/b>\u00a0Identify aspects of the organization that lie beyond your risk tolerance and then define specific steps for improvement.<\/li>\n<\/ol>\n<p>Once you take these steps, you can add other measurement strategies, including stress testing, monthly reporting, and use in budgeting\u00a0and forecasting. By taking the time to create and use an effective methodology, this competitive advantage can be yours. Want to learn more? Check out our resources for not-for-profit organizations\u00a0<a href=\"http:\/\/www.berrydunn.com\/industries\/not-for-profit\"><b>here<\/b><\/a>.<\/p>\n<pre><strong><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-15286 alignleft\" src=\"https:\/\/gc.gcdev3.com\/mcn\/wp-content\/uploads\/2026\/05\/ML.png\" alt=\"\" width=\"182\" height=\"209\" srcset=\"https:\/\/gc.gcdev3.com\/mcn\/wp-content\/uploads\/2026\/05\/ML.png 620w, https:\/\/gc.gcdev3.com\/mcn\/wp-content\/uploads\/2026\/05\/ML-262x300.png 262w\" sizes=\"auto, (max-width: 182px) 100vw, 182px\" \/><\/strong><\/pre>\n<pre><\/pre>\n<p><strong>About the Author: <\/strong>Mark LaPrade is a Principal and CPA with\u00a0<a href=\"https:\/\/www.berrydunn.com\/\">BerryDunn<\/a>.<\/p>\n<pre><\/pre>\n","protected":false},"excerpt":{"rendered":"<p>Stop us if you\u2019ve heard this one before (from your Board of Trustees or Finance Committee): \u201cI wish there was a way we could benchmark ourselves against our competitors.\u201d<\/p>\n<p>Have you ever wrestled with how to benchmark? Or struggled to identify what the Board wants to measure? Organizations can fall short on implementing effective methods to benchmark accurately.\u00a0<\/p>\n","protected":false},"author":24,"featured_media":15276,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":"","_links_to":"","_links_to_target":""},"categories":[140],"tags":[],"class_list":["post-14971","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog-posts"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Benchmarking: Satisfy Your Board and Gain a Competitive Advantage - Mass Council of Nonprofits<\/title>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Benchmarking: Satisfy Your Board and Gain a Competitive Advantage - Mass Council of Nonprofits\" \/>\n<meta property=\"og:description\" content=\"Stop us if you\u2019ve heard this one before (from your Board of Trustees or Finance Committee): \u201cI wish there was a way we could benchmark ourselves against our competitors.\u201d  Have you ever wrestled with how to benchmark? 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Organizations can fall short on implementing effective methods to benchmark accurately.\u00a0\" \/>\n<meta property=\"og:url\" content=\"https:\/\/gc.gcdev3.com\/mcn\/blog\/benchmarking-satisfy-your-board-and-gain-a-competitive-advantage\/\" \/>\n<meta property=\"og:site_name\" content=\"Mass Council of Nonprofits\" \/>\n<meta property=\"article:published_time\" content=\"2026-04-15T19:23:07+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-06-04T20:35:58+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/gc.gcdev3.com\/mcn\/wp-content\/uploads\/2026\/05\/Untitled-May-21-2026-at-11.22.40-19-1024x576.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1024\" \/>\n\t<meta property=\"og:image:height\" content=\"576\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Molly\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Molly\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/gc.gcdev3.com\\\/mcn\\\/blog\\\/benchmarking-satisfy-your-board-and-gain-a-competitive-advantage\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/gc.gcdev3.com\\\/mcn\\\/blog\\\/benchmarking-satisfy-your-board-and-gain-a-competitive-advantage\\\/\"},\"author\":{\"name\":\"Molly\",\"@id\":\"https:\\\/\\\/gc.gcdev3.com\\\/mcn\\\/#\\\/schema\\\/person\\\/6b2236e7ea3272d98f2ae9b2c5b74c99\"},\"headline\":\"Benchmarking: Satisfy Your Board and Gain a Competitive Advantage\",\"datePublished\":\"2026-04-15T19:23:07+00:00\",\"dateModified\":\"2026-06-04T20:35:58+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/gc.gcdev3.com\\\/mcn\\\/blog\\\/benchmarking-satisfy-your-board-and-gain-a-competitive-advantage\\\/\"},\"wordCount\":567,\"publisher\":{\"@id\":\"https:\\\/\\\/gc.gcdev3.com\\\/mcn\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/gc.gcdev3.com\\\/mcn\\\/blog\\\/benchmarking-satisfy-your-board-and-gain-a-competitive-advantage\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/gc.gcdev3.com\\\/mcn\\\/wp-content\\\/uploads\\\/2026\\\/05\\\/Untitled-May-21-2026-at-11.22.40-19.png\",\"articleSection\":[\"Blog Posts\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/gc.gcdev3.com\\\/mcn\\\/blog\\\/benchmarking-satisfy-your-board-and-gain-a-competitive-advantage\\\/\",\"url\":\"https:\\\/\\\/gc.gcdev3.com\\\/mcn\\\/blog\\\/benchmarking-satisfy-your-board-and-gain-a-competitive-advantage\\\/\",\"name\":\"Benchmarking: Satisfy Your Board and Gain a Competitive Advantage - 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