Tools to help charities measure impact

Common knowledge is that charities do good and make the best out of the donations they are given. But, putting a number on what’s being done is tricky. Measuring charity impact is hard because there isn’t an agreed upon definition and many charities will have different ways of seeing things.

 

Despite the challenges, measuring impact drives value, justify budgets, and measures change. Across the board, there are digital tools to help. Broadly, we classify the digital tools under ESG (Environmental, Social, and Governance) themes.

 

 

Where to start

 

As a jumping off point, Think NPC offers one of the best ways to conceptualise measuring impact. The digital resource advises taking a four-step journey:

• Plan how to make your impact
• Measure your performance using agreed upon KPIs
• Assess the data you’re collecting and see if it makes sense
• Review the results, communicate, and refine the strategy

Beyond the framework, there’s also a digital questionnaire to assess where charities are. The site also includes resources which debunks myths and jargon. 

 

Once the framework is decided, digital tools are deployed to evidence good actions.

 

 

How to measure environmental impact

 

Environmental impact isn’t just for those organisations focusing on greening. They are for any charity tracking how operations affect nature. Here are some simple tools to start the way to Net Zero.

 

For charities on a shoestring budget, essential tools to measure carbon dioxide emissions are free. The Carbon Trust’s carbon footprint calculator estimates output by using energy consumption and fuel bills over a 12-month period. The results review emissions from fuel sources and from electricity purchased from the grid. At no charge, regularly inputting new data every month empowers charities to make changes to their consumption.

 

Positive change is also measured on an individual level.

 

Staff, volunteers and managers have access to digital tools that analyse impact. The WWF, the UK Government, and My Carbon offer an opportunity to measure and reduce individual emissions.

 

 

Social impact measurement is about engagement

 

Like many ESG factors, social impact metrics aren’t agreed upon in the sector. The common theme is around who is benefitting, by how much, and how many people are. Listening and gathering feedback is important.

 

Survey Monkey is one of the most basic tools that can help charities gather feedback. The free version allows researchers to ask questions, both multiple choice and open-ended. The digital tool is fully customisable, so charities can use it as a ‘white label’ product. The benefit here is that organisations can get commentary from their beneficiaries and gauge impact both quantitatively and from testimonials.

 

Using social media reach and engagement is another way to measure impact. Metrics like mentions, shares, likes, and sentiment are good indicators of how you’re doing.

 

Social Value UK also offers a holistic picture for charities. Using a digital self-evaluation tool, charities can introspectively get a baseline of well social value is being measured. The outputs are shown in a ‘web’ form. Leaders can picture what is going well and what needs to be improved.  

 

Paid options add value to impact measurement. Sopact offers a comprehensive platform to track positive attributes. The data is aggregated and presented in a dashboard format.

 

Thematically, information is arranged around who the stakeholder is; what the outcomes are; how much of the outcome is happening; the contribution of the charity; and the potential risks. Overall, this platform is best for organisations who already have a strategy they want to collect data around.

 

 

Measuring governance

 

Governance is a particularly difficult ESG metric to grapple with. Good governance metrics for board members and leaders are focused on responsibility, leading by example, and good values. The Charity Governance Code outlines the principles in great detail.

 

To summarise, they say: "Good governance in charities is fundamental to their success. It enables and supports a charity’s compliance with the law and relevant regulations. It also promotes a culture where everything works towards fulfilling the charity’s vision."

 

Good governance impact measurement is regularly communicated in annual reports. For smaller charities who don’t have annual reports, special bulletins written by board members or trustees gets the word out.

 

The Small Charities Coalition digital resource is one to know – the content gives leaders ideas on how to measure impact. Metrics to report on incudes fundraising amounts, financial controls, risk management, compliance, and operational changes.

 

For board members and trustees, lawyers  Moore Kingston Smith lay out the foundations. They benchmark how boards can measure their impact and good governance. Using this short scorecard, leaders can develop the kind of metrics they want to respond to.

 

Our top tip to measuring governance is communication. Once you’ve decided on the impact metrics, make sure you have a strategy to let others know. Both staff and audiences should be included.