THE McKINSEY QUARTERLY 2001 NUMBER 2
100
To grasp the complexity of the task—and the serious problems of the approach that most nonprofits currently use—consider the experience of The Nature Conservancy.
Bucks and acres For 50 years, the Conservancy has had a clear mission: to preserve the diver- sity of plants and animals by protecting the habitats of rare species around the world. For most of the history of this organization, it measured success solely by the second, more tangible, part of its mission: protecting habitats.
Thus it would simply add up the amount of the annual charitable donations it received and the number of acres it was protecting. These metrics soon became enshrined as “bucks and acres.” As a measurement system, bucks and acres had a lot going for it. Managers clearly understood how their programs would be judged and could act accordingly. The board of governors liked the emphasis on buying land—an approach that set the Conservancy apart from other environmental organizations: donors responded well to the clarity and simplicity of dollars raised and land saved. These metrics told a tale of success (Exhibit 1). The Conservancy—the world’s largest private conservation group—has protected 12 million acres in the United States and mil- lions of additional acres in 28 other countries. Last year, its membership climbed to 1.1 million people and its revenue to $780 million. Without question, the upward trajectory of these statistics bolstered the morale of the staff, increased its motivation, and inspired confidence among donors.
E X H I B I T 1
Bucks and acres: The Nature Conservancy
Measurement of progress, 1971–99
Total income and cost of land, $ million
Endowment funds All other revenues 1 Total cost of land 2
2.2
1971
42.5
6.1
13.5
1981
225.0
33.4
102.1
1991
254.7
145.3
791.7
1999
774.9
217.4
Acres preserved, millions
United States International
1971 0.2 1981 2.0 1991 5.5
35.0
40.5
1999
11.0
55.0
66.0
Members, thousands
1971
28
1981
129
1991
600
1999
1,049
1 Includes lease income, planned gifts, land sales, and donations. 2 Includes joint- or sole-ownership acquisition fees, payments made to landowners to keep lands in conservation status (conservation easements), leases, licenses, and management agreements. Source: The Nature Conservancy
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