Understanding your nonprofit's social impact can reinvigorate your organization – and your donors. But how do you measure something so intangible? In this article, we'll share why measuring impact is so crucial and four concrete ways to do so.
“Measuring impact” has become a mantra for nonprofit professionals around the world. As donors become savvier and less trusting of nonprofits, fundraisers everywhere have had to learn the best way to measure and share their social impact on the world.
Multiple approaches have been developed to help nonprofits define and measure their social impact, but a single, stand-alone, universally accepted framework does not exist yet. Different organizations will have different goalposts and measurements to show their success.
In this article, we’ll share why measuring social impact is so important and four ways to start measuring your impact.
University of Michigan defined social impact as “a significant, positive change that addresses a pressing social challenge. Having a social impact is the result of a deliberate set of activities.”
And what is the difference between impact and social impact?
“Impact” on its own implies an influence or effect on virtually anything or any change from a current situation. “Social impact,” however, is grounded in its effect on a pressing social challenge.
Although what a “pressing social challenge” means might differ from one community to another, from one country to another, or even from one nonprofit professional to another, a minimum consensus exists on the fact that social impact should be more than a marginally positive change, and one that impacts a broader social issue.
Social issues include things like equality, diversity, health, nutrition, poverty, security, justice, conservation, energy use, waste, and environmental health.
Albeit a difficult task, measuring social impact matters. Nonprofits must measure the success of their initiatives so they can change their strategy as needed and assess their mission. There are many other reasons to measure social impact, and here are only a couple:
Here are some ways you can measure social impact to understand how your work is making a larger difference.
If there are people in your community who have benefitted from your services, ask if they’re willing to share a testimonial. Depending on your work, this may need to be anonymous. But a detailed testimonial can help you measure your qualifiable social impact in the following ways:
Pro tip: Use this testimonial (with permission from the provider!) on your website, in your training materials, and in your impact report. This is a great way to showcase your social impact to the community at large and justify your need for more donations.
Your work won’t always be quantifiable – aka, easy to count. For example, you can’t measure how you’ve changed a child’s life by providing them with free lunches, but you can measure how many free lunches you’ve provided.
Whitman’s Lunchbox shows donors how many meals they can provide for each donation level on their Donorbox donation form. This quantifies both the impact of the organization and the impact the donor’s gift can have. If a donor sees that they can provide 40 meals with a $50 donation, they have a better understanding of the impact of the organization’s work.
One way to measure your social impact is to look at some statistics related to the cause or issue your work addresses. This measurement tactic will only work if you understand the baseline statistic and can note a percentage difference.
For example, suppose your city has a 12% unemployment rate one year and a 9% unemployment rate the following year, and your organization has made significant efforts to assist with job hunting and preparation. In that case, you can reasonably assume that your work made an impact on the community.
It’s important to note that there are other factors at play in these types of statistics. In this example, perhaps your city government launched a new employment initiative or the economy improved significantly. It would be disingenuous to say that your organization was the sole reason for that statistical increase. But you can still use those statistics to show how your work, in tandem with other initiatives, made a real impact on your community.
The social impact of nonprofit organizations isn’t just how many people they’ve helped. Another way to measure your impact is to understand your role in the larger community. A great way to get this kind of information is through community interviews.
Interview stakeholders in your community like government officials, other nonprofit leaders, and more to get the following information:
This is also a great opportunity to build relationships and discuss potential collaborations with these stakeholders.
Now that we’ve discussed four ways to measure the social impact of nonprofit organizations, let’s look at some common mistakes and pitfalls.
Impact measurement should help, not take up time and resources and weigh down staff. Find a measurement method that works for your team and makes sense for your mission.
Setting up a regular process for collecting these measurements will ensure your team remains efficient while collecting this important information.
Social impact measurement tools and frameworks need to be quick to adapt. Your process won’t always be the same, especially if your nonprofit changes initiatives or completes a strategic plan. Staying flexible will ensure you always measure social impact in the appropriate way.
Measuring impact in a vacuum is impossible. Organizations need to understand the external context in order to develop more realistic frameworks. Are other organizations working toward the same goal and if so, how has their impact affected yours?
Impact measurement frameworks need to be constantly re-evaluated and tested. If you launch a new initiative or change up how you approach your mission, you’ll need a different strategy for measuring your social impact.
Measuring social impact is more than a one-off event – it should be an ongoing practice that becomes a part of your nonprofit’s culture.
By developing simple and practical tools to track progress and sharing results within and outside your nonprofit, you can better equip yourself to advance your mission, secure funding, and deliver value to all stakeholders.
And although measuring impact can feel like a chore, the long-term benefits vastly outweigh the short-term inconveniences. And it isn’t going anywhere anytime soon!
If anything, remember that, as a nonprofit professional you are on a journey of helping others and addressing some of the most pressing social challenges. Social impact measurement isn’t there to purposely make your life more difficult, it’s there to help turn scarce resources into significant improvements in society.
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Ilma Ibrisevic is a content creator and nonprofit writer. She’s passionate about meaningful work, sustainability, and social movements. If she’s not working, she’s obsessing over coffee or cooking. You can connect with her on Linkedin.
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Ilma Ibrisevic