Matching Outreach and Financial Sustainability. An Assessed Accounting Framework in Evaluating Performance of Microfinance Project

The theoretical framework, consisting of the traditional literature on performance, is contextualized according to the specific rationale that characterizes the microfinance operation. Performance evaluation, moreover, is not a new subject matter in microfinance. On the international level, different models of evaluation have been developed over the course of the last years. This work proposes an alternative performance measure for microfinance. The innovative force is inspired with respect to three specific requirements: the first is the strict derivation of the classical doctrine on performance analysis – that assures the rigorousness and reliability; its adaptability to formal institutions, including non-profit organizations that are less formal and complex; the need to find a correct balance between the two dichotomous objectives that characterize microfinance, that is the financial sustainability and outreach.