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Mackenzie Strategic
insights • ideas • innovations
ISSUE thrEE • may 2014
impact reporting: What difference are you making and how do you know?
ContentsISSUE thrEE • may 2014
contact uSFor more details please contact carol Bezaire at: 416-967-2053 1-888-653-7070 [email protected]
This is a Mackenzie Investments Publication. Production and design by Ext. Marketing Inc.
5 Inputs, Outputs, OutcOmes and Impact By Janet Gadeski
charities already know that measuring dollars spent does not lead to an understanding of impact. But what does?
3 Impact: the JOurney frOm measurement tO meanInG By Janet Gadeski
impact measurement done well may actually counteract the less meaningful measures that some agencies and members of the public use. But the right questions are not easy to define, let alone answer.
8 BeyOnd the head cOunt: measurInG LastInG chanGe By Janet Gadeski
Funders may misunderstand the distinction between results (or outputs), outcomes and impact. the hardest thing to measure? impact, particularly for complex, intractable problems like poverty, homelessness and substance abuse.
14 a funder’s VIew By steven plunkett
For the Mackenzie investments charitable Foundation, reporting along the lines of a “business” instead of a “cause” allows donors to make informed choices about where their money goes.
16 teLLInG dOnOrs aBOut yOur Impact By terry smith
six tips to help charities effectively report to donors on impact.
19 heLpfuL exampLes By Janet Gadeski
three examples of impact reporting to inspire your own communications.
hOw canada’s LarGest fOundatIOn InVests fOr Impact By andrea cohen Barrack
ontario trillium Foundation has a broad mission: to create healthy and vibrant communities. What does meeting that mandate look like? are ontario’s communities healthier and more vibrant because of our investments? how can we transform our available resources into intended social impact?
11
from Carol BezaireLetterWelcome to the thIrD issue of Mackenzie Strategic Philanthropy.
i am honoured to assume the stewardship of this publication as a result of my colleague, Brad
offman, departing Mackenzie investments. i have great respect and gratitude for Brad’s passion and
expertise in the philanthropic world, and his contributions over eight years at Mackenzie investments.
the Mackenzie Strategic Philanthropy publication was Brad’s idea, and i’m thrilled to be a part of it.
this edition deals with return on investment in charitable funding. today, nonprofits face increasing
competition for funding as well as for member support. there is increased attention paid to tangible
results derived by charities based on the funds received. Besides the high competition, there are
other factors that play a part in a charity being selected for funding. stories of corruption or fraud
within charitable organizations as described in the media have resulted in greater demand for
accountability in the nonprofit sector. accountability comes in three basic forms — output (immediate
results), outcome (longer term remedial impact) and social impact.
this issue addresses the social impact of charitable funding from a number of different perspectives,
and relies on the insights of key leaders. From simple tips to overarching strategies, we hope to provide
you with a variety of potential tools to address and mitigate the issue within your own organization.
if you would prefer hard copies of this publication, or would like to catch up on our initial two issues
for your board, please refer to the link on the home page.
Please spread the word about Mackenzie Strategic Philanthropy!
– carol Bezaire
ContRIbutoRs
ISSUE thrEE • may 2014
1
Janet gadeSkiEditor, Hilborn Charity eNEWS President, Hilborn
hilborn is a canadian publisher of independent news and analysis for the social profit sector.
andrea cohen BarrackCEO, Ontario Trillium Foundation
andrea is recognized for her expertise in making organizations more effective by ensuring that systems are integrated and impact is both measured and assessed.
carol BezaireSenior Vice President, Tax, Estate and Strategic Philanthropy, Mackenzie Investments
in her role, carol leads a team of Practice Management and tax and estate Planning professionals who support and offer opportunities to help financial advisors stay well informed in an ever-changing marketplace.
Steven PlunkettChair, Employee Committee, Mackenzie Investments Charitable Foundation
steven works with a nationwide group of Mackenzie employees responsible for staff volunteerism, fundraising programs, and overall corporate philanthropy and community involvement.
terry SmithPresident & CEO, Philanthropic.ca
terry is President & ceo of Philanthropic.ca, providing advice and support to individuals and family foundations with their philanthropic giving.
we acknOwLedGe wIth GratItude thOse whO shared theIr InsIGhts thrOuGh InterVIews recOrded In thIs Issue Of Mackenzie Strategic PhilanthroPy:
Ken Wyman, Professor, Fundraising Management, Humber College
Susan Pigott, Executive-in-Residence, Ashoka Canada
Joan Blight, Philanthropy Consultant, Strategic Philanthropy
James temple, Corporate Responsibility Director, PriceWaterhouse Cooper
hilary Pearson, President, Philanthropic Foundations of Canada
macKEnzIE StratEgIc PhIlanthroPy.
2
the ontario trillium foundation (otf)...
of charity leaders agree their organizations are experiencing diffi culties fulfi lling their mission.3
agree they are seeing increased demands for the products and services they off er.3
charities with annual revenues of $1.5 million or more are more likely to predict being better able to carry out their missions.3
charities with annual revenues of less than $150,000 are less likely to predict being better able to carry out their mission.3
range, foundations typically don’t have staff to collect and analyze reports2
$5-$10 millionIn the
86% of donors consider themselves knowledgeable about the causes they support.
this is a 9 point jump from the 2011 survey.1
has granted more than $1 billion to nonprofi t
organizations across ontario in the past 10 years.4
will invest another
$1 billion over the next decade.4
is thelargest granting
foundation in canada.4
53%
49%
Stats&facts
1 Source: From “What Canadian Donors Want”, a 2013 survey by the Association of Fundraising Professionals and Ipsos-Reid. | 2 Source: Philathropic Foundations of Canada. | 3 Source: Imagine Canada Sector Monitor, Vol. 4, Number 1. | 4 Source: Ontario Trillium Foundation.
3
ISSUE thrEE • may 2014
3
imPactthe Journey from
measurement to meaning
Janet gadeSki
was there ever a golden age when nearly everyone thought charities were doing a good job? yes, some demographers say. the civic generation (born 1945 or earlier) were inclined to trust charities, at least the ones
with big names or visible work, without questioning.
macKEnzIE StratEgIc PhIlanthroPy.
4
But civics are no longer the majority
in our population. Boomers,
gen Y, gen X and Millennials
challenge all kinds of authority,
including charities. and when
those demographics reach for their
chequebooks, disburse government
dollars, determine foundation grants
or report through the media, they
no longer assume that charities are
effective. they want proof.
as with any emerging idea, some of
the new demands and assumptions
about impact or effectiveness are
misguided. the charity with the
lowest operating expense, the
cheapest cost per dollar raised,
the tiniest staff budget or even
the most people served is not
automatically the most effective
in its class. and if it is, its impact
is almost never built on the
characteristics i’ve just mentioned.
iS a heavy tv a Better tv?imagine canada’s chief economist
Brian emmett points out (with a
little help from marketing guru seth
godin) that when we approach
impact measurement, we risk
“select[ing] priorities that are more
easily measurable and perhaps
more easily fundable.” that’s as
helpful as weighing a tv set to
evaluate its clarity.
in the meantime, efforts to
measure impact seem marked
by misguided effort, irrelevant
statistics and ambiguous, unhelpful
conclusions. here’s an excerpt from
evaluation’s next Generation, srik
gopalakrishnan’s review of the U.s.
foundation sector for the Stanford
Social Innovation Review:
A recent survey on nonprofits and
their relationship with data found
that only 50% of nonprofits are
tracking any kind of outcome data.
Foundations are no different. A
benchmarking study of evaluations
in foundations found that only
38% of foundations reported,
“Management regularly models the
use of evaluation in its own decision
making.” The authors of the study
go on to suggest that this appears
to be less about the willingness of
foundations to use evaluation, and
more about the poor fit between the
decisions they need to make, the
evaluation questions they ask, and
the data that nonprofits produce. In
other words, evaluation isn’t giving
people what they need.
But there are hopeful signs. More
charities recognize that they should
be eager to demonstrate impact in a
way that reaches beyond bodies in
programs. More donors and funders
want to give wisely and invest
time in the research, thought and
site visits that lift their own sights
beyond numbers served.
impact measurement done well
and promoted unceasingly could
actually counteract the meaningless,
sometimes harmful measures that
some agencies and members of the
public use. the right questions are
not easy to define, let alone answer.
they lead us into mysteries such
as long-term hunger alleviation,
improved life expectancy,
environmental impact, sustainability,
changes in family and community
life, and lifestyle-related diseases
– trends that can take years,
sometimes generations, to track.
in canada, some organizations and
funders have recognized that the
most meaningful impact, the most
sustainable systemic changes, are a
collective responsibility. that leads
to even more questions! But at least
we are on the way.
carol and i hope that wherever you
are in your efforts to discern the
impact of your charity or network,
the ideas in this issue of Mackenzie
Strategic Philanthropy will help you
move ahead.
a recent survey on nonprofits and their relationship with
data found that only 50% of nonprofits are tracking any
kind of outcome data.50%
ISSUE thrEE • may 2014
5
inputs, outputs, outcomes impact
Janet gadeSki
macKEnzIE StratEgIc PhIlanthroPy.
6
charities already know, of course,
that measuring dollars spent does
not lead to an understanding of
impact. But what does? numbers
of participants or clients? Large
numbers can be impressive for
funders making quick judgements.
But do they really reflect progress
in individual lives? improvements
in a community? changes to the
systemic factors that created the
problems in the first place?
a growing number of thought
leaders in the field of impact
evaluation believe that impact
cannot be measured easily
or quickly. “impact should be
understood as a journey from inputs
to outputs, then to outcomes, and
finally to impacts,” explains Pwc
corporate responsibility director
James temple. “Many organizations
are still stuck in the world of
outputs and outcomes. it’s hard to
move to impact.”
“If your decisions are always dollar-driven,
you’re not going to have the outcomes you’re
looking for,” warns Winnipeg philanthropy
consultant Joan Blight. that’s true whether the
dollars you’re discussing are spent on program,
administration or fundraising.
know the differenceLet’s start by defining the terms
James uses. inputs are everything
and everyone that a charity uses to
deliver its mission. outputs are what
the charity produces – educational
programs, shelter, counselling,
concerts, health information,
etc. When charities report on
their programs, the outputs are
the easiest to report. how many
attended literacy classes? how
many were housed, and what were
their demographics? how many
concerts were produced?
outcomes and impact are more
challenging to track. Both address
the question, “What difference did
it make?” outcomes focus on the
individual in the short or medium
term. they may include numbers,
but those numbers measure
something that goes beyond the
charities’ own programs – for
example, the number of participants
in a literacy class who were
motivated to seek a high school
equivalency diploma.
impact is longer-term and reaches
beyond the individual. With literacy
class graduates, for example,
their ability to read stories to their
children might lead to those children
doing better in school. their ability
to read everything from medication
labels to memos from a supervisor
might lead to greater prescription
compliance or improved
performance at work.
“ social entrepreneurs are
not content just to give a
fish, or teach how to fish.
they will not rest until they
have revolutionized the
fishing industry.“
— Bill drayton, aShoka founder and ceo
ISSUE thrEE • may 2014
7
You can see the challenge of gathering the data required to assess such wide-ranging changes. here are some
tips from tris Lumley and James noble, writing for The Guardian’s Voluntary sector Blog:
You may never know all of the difference
you make. But the more you ask, the more you
will learn about the impact you intended to have...
When Winnipeg’s Inner city renovation (Icr) began probing their impact, local merchants told them
something they hadn’t expected: icR’s improvements to the neighbourhood’s dilapidated housing had helped
to drive drug dealers out of the area. You may never know all of the difference you make. But the more you
ask, the more you will learn about the impact you intended to have and the even broader-ranging changes
you might not have suspected.
1. know why you’re measuring your impact. is it to help you and your trustees understand and improve your impact? to communicate
your results to funders? to feed back to your stakeholders? Whatever it is, make sure your
approach gives you what you and your evaluators need.
2. set the right questions. What problem are you trying to tackle? What changes do you want to bring about and how?
What are your goals? how will you know if you’ve achieved them?
3. don’t assume that you have to measure everyone and everything yourselves. Look at what other institutions have already learned and ask how it applies to your work.
there are plenty of studies and reports on the impact of literacy classes, for example.
4. tools and frameworks When collecting your own data, look for tools and frameworks to borrow before you start
designing your own questions. collect some information from everyone and more detailed
data from a sample.
macKEnzIE StratEgIc PhIlanthroPy.
8
how is our community better because of our work?
that may be the toughest question a nonprofi t ever has to answer. “we can’t get stuck
in outcomes only,” says humber college fundraising management professor ken wyman.
“as governments cut back and load more responsibility onto the nonprofi t sector, we
need to know whether we’re creating eff ective solutions. does spending $10,000 on
services for a homeless person prevent $50,000 in emergency room use, for instance?”
measuring Lasting change
head count:Beyond the
Janet gadeSki
ISSUE thrEE • may 2014
9
chasing the data for such
widespread, complex issues is
challenging and expensive. “Look
at the medical model of testing,”
ken continues. “they follow people
for 20 or 30 years at the cost of
millions of dollars. one solution
when evaluation is too complex or
expensive to do on your own is to
partner with academics who can
devote some research time to you.
they can bring skills, student labour
and professional understanding to
your review.”
susan Pigott of ashoka canada also emphasizes the importance
of a long timeline. “if you’re trying
to accomplish large scale systemic
change, measurement must be
long term,” she affirms. ashoka’s
entire philosophy is built on that
commitment. intentional long-term
relationships with ashoka Fellows
allow the organization to assess
the long-term impact of Fellows’
initiatives according to carefully
developed criteria. But smaller
charities and funders struggle to
establish such criteria, especially
when time and other resources
are limited.
higher need, aBStract imPactWinnipeg philanthropy consultant
Joan Blight of Strategic Philanthropy
sees a direct correlation between
the nature of the need that a
program targets and the difficulty
of measuring its impact.
“impact on needs that rank higher in
Maslow’s hierarchy is much harder
to measure," she notes. "Fortunately,
some funders understand that
individual development measures
(such as self-actualization) are
much more qualitative. it’s crucial
to know your potential funder and
whether they understand and value
the impact your charity is striving
for. an experienced philanthropist
will see the whole range of needs,
but people who are just starting
out may be in a different, less
sophisticated place.”
imPact emPhaSiS rare among Smaller funderSthe larger foundations in
philanthropic foundations canada
(pfc) believe that funders must
do more than just demand impact
evaluation from the charities
they support. “We get to better
measurement by starting with a
lot of dialogue among funders,”
explains PFc’s president hilary
Pearson. “What do we want to
accomplish? how can we play a part
in bringing about a big change?”
she sees a trend among the larger
foundations in PFc. generally, she
explains, the larger they are, the
greater their staff capacity. that
sometimes goes hand in hand with a
more strategic approach to systemic
change that may involve working
together, creating coalitions and
even operating programs.
“on the other hand, many small
funders don’t have capacity
themselves to be demanding or
sophisticated about measures,” she
admits. “in the $5- to $10-million
range, foundations typically don’t
have staff to collect and analyze
reports. they do want to know what
happened and whether the money
was applied for the purpose for
which it was given. But at that level,
they very seldom ask or hear what
difference is made.”
“ they must ask what
community vitality look
like, understand their
own role in their
community ecosystem,
then play to their strengths
to create change”
— JameS temPle, Pwc corP. reSPonSiBility officer
Self-actualizeAchieving one’s full potential, including creative activities
SELF-FULFILLMENT NEEDS
Self-esteemPrestige and feeling of accomplishment
Love & belongingIntimate relationships/friends
Safety & SecuritySecurity, safety
Physiological NeedsFood, water, warmth, rest
PSYCHOLOGICALNEEDS
BASICNEEDS
macKEnzIE StratEgIc PhIlanthroPy.
10
think decadeS, not yearSinexperienced funders – or those
whose own resources are limited –
miss the distinction between results
(or outputs), outcomes and impacts,
she continues. impact is the hardest
thing to measure, particularly for
complex, intractable problems
like poverty, homelessness and
substance abuse. and both charities
and funders need to understand the
extended timeframe that impact
measurement requires.
hilary cites calgary’s 10-year plan
to end homelessness as an example.
“We’ll see its impact over time.
the outcome will be fewer people
being permanently homeless. the
impact will be that they get jobs,
they’re better off, they send their
children to school. But you still want
to know – was the c that we chose
to do better than the a or B we
considered? You can never know
for sure. impact measurement will
always be approximate.”
imPact a collective reSPonSiBilityPFc members are in good
company as they move towards
viewing impact as a collective
accomplishment. the United Way
and community foundations now
pay a lot of attention to working
together to share skills and
expertise, notes Pwc corporate
responsibility director James
temple. Both use the insights of the
Vital Signs community mapping
process to inform their work.
Like funders, charities must work
together to gauge their full impact,
James believes. “they must ask
what community vitality looks like,
understand their own role in their community ecosystem, then play to their strengths to create change.”
today, that’s starting to happen more and more through collaborations like Innoweave (an initiative of the J.W. Mcconnell Family Foundation) and the community knowledge exchange (developed by the ontario trillium Foundation and community Foundations canada). although it is not yet common to see funders helping charities evaluate impact, these thought leaders may well be launching a trend that will benefit funders, charities and service users alike.
MASLOW’S HIERARCHY OF NEEDS
ISSUE thrEE • may 2014
11
hoW canada’S largeSt FoUnDatIon InVEStS For imPact
andrea cohen Barrack
macKEnzIE StratEgIc PhIlanthroPy.
12
over the past decade, the Ontario trillium
foundation (Otf), an ontario government-
funded agency, has granted more than $1 billion
to nonprofit organizations across ontario.
over the next decade, otF will invest
another $1 billion.
those numbers make otF the largest granting foundation in
canada. But regardless of size, all funders face the daunting
question: What did our investments accomplish? how do we
know that we made a difference?
Part of the answer can be found in the stories we hear about
projects that we have funded. often, there is also data suggesting
that projects achieved their objectives. however, this anecdotal
data fails to answer the broader question of impact.
are we making communitieS Better?otF has shifted in its focus as we work to evaluate the impact
of our investments. otF has a broad mission: to create healthy
and vibrant communities. our focus now rests on defining
success. What does meeting that mandate look like? are
ontario’s communities healthier and more vibrant because of our
investments? how can we transform our available resources into
our intended social impact?
We want to clearly define the impact we strive towards and focus
our grant-making on evidence-based strategies to achieve the
impact we intend. to do this, otF has worked with the canadian
Index of wellbeing to define “healthy and vibrant communities.”
We have commissioned an ontario-based ciW report that was
released in april, and starting next year, we will align our granting
budget to invest in projects which will help ontario to be a leader
in the indicators we select.
ISSUE thrEE • may 2014
13
collaBoration iS eSSentialWhile we are canada’s largest
granting foundation, we know that
we are a teaspoon in the ocean. We
have become increasingly aware
that in order to build healthy and
vibrant communities across the
province, we need to collaborate
in our approaches to investing and
measuring impact. as we start to
target our investments at specific
indicators of community well-being,
we will also need to work with the
not-for-profit sector and other
funders to collectively set goals, and
measure and demonstrate results.
With these partnerships, we can
make efficient use of our investments
to effect positive systems change –
and collective impact.
a number of internal and external
catalysts have influenced the
Foundation’s increased focus of
leveraging investments for collective
impact and shared measurement.
Like many others, otF has had to
cope with a decrease in our available
granting budget. at the same time,
our applicants and grantees have
indicated that they need deeper
grants over a longer time frame to
get results. the increasing fiscal
pressure otF has encountered and
the growing demand for granting
dollars have galvanized us to find
ways to leverage our investment.
these shifts have played a critical
role in contributing to otF’s goal
of leveraging our resources by
seeking partnership opportunities
to fund projects for deeper
collective impact. this year, we
have partnered with two private
foundations – the Weston Family
Parks challenge and the Gordon and ruth Gooder charitable foundation. these partnerships
help otF to strengthen the impact
of our investments while building
support for shared measurement
and shared outcomes through
common objectives.
our theme at otF is “investing for
impact.” We know how we want to
change this province for the better.
We also know that we cannot do
it alone. as we move forward, we
hope that otF can catalyze change
by working collectively with other
funders and organizations.
macKEnzIE StratEgIc PhIlanthroPy.
14
as the canadian population
ages, there are many practical
reasons for individual donors
to look at how their charity
dollars are used. donors want
to see the impact of their
donations. that, in turn,
puts increasing pressure
on charities to show the
results of their work in the
community or in areas in
which they operate.
Being able to articulate the value
that a charity brings so that the
objectives and results are clear
to donors can help strengthen
the overall trust and engagement
of donors.
at Mackenzie investments, the
employer/employee charitable
Foundation supports charities in
the communities we serve. impact
reporting helps the Foundation
make informed choices when
selecting the charities with
whom we deal.
the Foundation typically donates to
smaller-sized charitable organizations
focusing on children and families
at-risk. a description (or impact
Report) from our partner charities on
how our grant has been allocated is
something our donations committee
pays close attention to. it’s important
for us to know how well the programs
we support are impacting the
communities we serve. however,
we often find that charities are not
providing donors with enough detail
as to how their grants are impacting
the community.
a funder’s viewSteven Plunkett
ISSUE thrEE • may 2014
15
helP your chamPion communicateeach of the charities supported
by our Foundation is linked with a
Relationship Manager (volunteer
Board or committee members)
who acts as the charity’s point
of contact throughout the year.
each Relationship Manager reports
back to the Foundation with any
pertinent updates. this structure
allows the Relationship Manager
to understand how efficiently the
charity is functioning, but without
a proper stewardship report
describing the impact of a donation,
it can be more difficult for the
Relationship Manager to express the
program’s benefits to the donations
committee, especially when
granting decisions are being made.
our Foundation sees that some
charities report on what their donors
ask for, which does not necessarily
showcase whether the charity is
achieving its goals. therefore, it is
important for donors to know how
to ask the right questions.
funding aPPlication may Seed your imPact rePortWhen charitable organizations
that are not current recipients
apply to our Foundation for
funding, they complete a lengthy
donation application form with an
entire section on Reporting and
Accountability. We ask:
What type of activities is the
charity proposing to undertake
with the donation requested?
What are the benefits, both
qualitative/quantitative, and
the anticipated results?
how is the success of the
program measured, and how
is this communicated back?
in essence, this can be considered
a report on the impact the charity
hopes to make.
the donations committee also
takes a close look at the charity’s
financial statements to gain a
better understanding of the
charity’s sources and uses of cash.
this allows the committee to
determine if donations are flowing
to the anticipated recipients or
used for administrative costs,
which makes a difference in the
decision-making process.
When it comes time to finalize
granting decisions, we evaluate
the applications of new candidates
alongside our current partner
charities. this is precisely where
having quantitative and measurable
descriptions of a program’s impact
on the community is helpful for
both the donations committee and
the charities we support.
in short, reporting along the lines
of a “business” instead of a “cause”
allows donors to make informed
choices about where their money
will go.
the donations coMMittee aLso takes a
cLose Look at the chaRitY’s FinanciaL
stateMents to gain a BetteR UndeRstanding
oF the chaRitY’s soURces and Uses oF cash.
16
do your donorS aSk you what the imPact of their
gift will Be? if that haSn’t haPPened yet, you need to
get ready. no longer are moSt donorS content JuSt
to write a cheque to a charity. they are Becoming
PerSonally involved with their giving and want to
See what difference their funding makeS.
terry Smith
telling Donorsimpactabout
your
ISSUE thrEE • may 2014
17
at philanthropic.ca, we help individual donors and family foundations assess
the impact of their philanthropic support. some provide very small grants to
many organizations, while others generously support canadian charities with
millions of dollars. all of them, though, want to know whether their support
changed anything for the people that the charity serves.
Larger charities receiving large grants should consider formal impact studies,
but smaller charities may not be able to afford such reviews. how can they
balance scarce resources between reporting back to donors and delivering their
programs, especially if programs are funded by many very small donations?
here are six tips for reporting to donors on impact without going into a lot of expense.
1. relate to your charity’S miSSion and mandate
Before you approach a donor, review your mission
and mandate. What are you trying to achieve? What
are your overall goals? how does this donor request
help move you in that direction? how will your
desired outcome move you closer to your charitable
goals? Make sure you stress that when you seek
funding from your donors.
For example, if your mission is to help those in
poverty and your mandate is to run a school
breakfast program, ask yourself how the breakfast
program will help reduce poverty. You cannot
possibly account for an overall reduction in poverty
because of your one program; however, over the
long term you may be able to show that children
attending the breakfast program stayed in school
longer and developed lifelong skills to find work and
contribute to society.
2. clear exPectationS
When you meet with your prospective donor
or submit your application, be clear about what
their gift will mean to your charity and how it will
advance your cause. indicate what kind of reporting
you will be able to provide and how often. Most
donors are very flexible as long as they understand
what to expect.
3. look for more than JuSt numBerS
numbers are important, but discovering impact
takes deeper examination. With the breakfast
program above, the charity can begin by asking
participants what the program means to them, and
asking teachers and principals if they have noticed
any changes in the children. are they more alert in
class? are their grades improving? is there a change
in their social skills? if the charity has access to
parents, the charity can ask these parents what the
program means to them and to their children. their
testimonials will help the charity and its supporters
understand what donors’ gifts and grants have
accomplished.
4. invite the donor to the Program
nothing expands a donor’s understanding more
than visiting your facility or program. they see for
themselves that the breakfast program is being
well used, the kids are enjoying the food, and the
facility is clean and adequate. they may hear from
teachers about the effects of the program and how
the charity is viewed by the school, the students and
the community.
some donors may even want to help prepare
or distribute the food just to see how the whole
operation works. that will help them to understand
your report more fully when you send it in.
86%
macKEnzIE StratEgIc PhIlanthroPy.
18
5. viSualS tell the Story
Many donors will not be able to visit your program, but you can send the
program to them in the form of a short video or some photos with your
report. in the case of the breakfast program, letters from participants, a
parent or teacher also help donors understand what their support means.
6. regular uPdateS and rePortS
all donors deserve to know what difference their funding makes, but
not all donors need individual reports. an annual report or a regular blog
posted on your website or sent to all your donors will keep them up to
speed on your organization’s activities and progress.
For those donors with whom you may have specific agreements, or who
have given you designated funds, ensure you report back as expected.
if you have received substantial support, make sure your report reflects
the level of support.
donors like to hear how their funds are helping others, so if you have
had a breakthrough or something you think the donor would like to know,
keep in touch with short email updates along with your regularly scheduled
reports. keeping donors informed will motivate them to engage further
in your organization and help them understand that you are indeed making
an impact.
these simple steps will get you started on reporting on your impact. once you
try a few of these tips, you will find other things within your organization that
will help you tell your story and keep your donors engaged.
Source: “What Canadian Donors Want”, 2013 survey by the Association of Fundraising Professionals and Ipsos-Reid
86% of donors consider themselves knowledgeable about the causes they support, a nine-point jump from the 2011 survey.*
ISSUE thrEE • may 2014
19
Finally, a word about reporting on your impact, once you know what it is. you may be able to arrange site visits, open houses and other kinds of front-line experiences for your key funders. For those individuals, personal experiences are always the most intimate and powerful.
But most charities will not find it feasible to create such experiences for all their supporters. that’s why we’re closing this issue of mackenzie Strategic Philanthropy with three examples of impact reporting to inspire your own communications.
HElPFul examples
Janet gadeSki
macKEnzIE StratEgIc PhIlanthroPy.
20
By 2009, icR was able to report some longer-lasting
change:
employees have indicated that they feel they
are getting along better with others as a result
of their employment with icR
target employees continue to enjoy their work
at icR and most view icR as a good career
opportunity
Long-term employees noted an improvement
in their technical skills
define, demand, deScriBe
Finally, the ashoka canada impact study addresses
the challenge directly, asking, “how do you know when
you’ve revolutionized an industry?” their answer is found
in a careful description of the five kinds of impact they
want their Fellows to make over five to ten years, as well
as clear criteria for what that impact looks like.
Fellows seeking to change “market dynamics and value
chains,” for instance, are expected to:
increase access to goods and services
create new markets
create value where a value didn’t exist
generate income for the poor
change the flow of market information
Both charities and funders still have much to learn
about the tools and timeline of impact measurement,
and especially about the patience required for impact
to become discernible. But through innovative (though
limited) funding, collaboration, information sharing
and commitment, canada’s best charities, donors and
grantmakers are definitely engaging the new expectation
of impact.
effective video
unity charity teaches youth to express and transcend
their stress through arts-based leadership programs
(breakdance, spoken word performance, beatbox and
graffiti art). a rotating slide show on their home page
leads to a video called “how Unity impacts communities
across canada”.
the video succeeds through showing more than telling.
it includes a testimonial from a school board trustee
and community leader, and personal testimony from
participants. But the real power lies in scenes of
excited, engaged youth working with and performing
for their peers.
near the end, we see a Unity vocalist and beatboxer
improvising joyously with ... his middle-aged high school
principal playing an accordion. the mutual respect,
acceptance and creativity between these two individuals
speaks vividly of Unity charity’s impact.
multi-year comPariSon
Inner city renovation (Icr) is a Winnipeg general
contractor and social enterprise with a mission to provide
quality employment for inner-city low-income residents
and quality general contracting services in Winnipeg.
icR published a social return on Investment (srOI) report card. including seven years’ worth of reviews
in the same document (2003 through 2009) allows
an analytical reader to see both short-term outcomes
and long-term impact, since the organization was
founded in 2002.
Unfortunately though, the report describes both short-
and long-term accomplishments as “outcomes,” which
masks the difference between outcomes and impact.
the 2003 report contains outcomes like these:
Most employees use bank accounts rather than
cheque cashing services
only 5% of staff continue to use food banks and
frequency has dropped
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