Impact: Een Geldverstrekkers Perspectief

Kellie Liket (PhD student Social Impact Measurement)Erasmus Centre for Strategic Philanthropy

“Contrary to conventional wisdom and some rhetoric at the moment, funders are not and should not be the primary drivers of performance measurement. Metrics at Jumpstart should be

driven by an internal desire for effectiveness” Aaron Lieberman, Co-founder and CEO of Jumpstart

Number of standard structure grants made

(e.g. 50 1-3 year grants of average $300.000)

Pro-active selection of organizations, on the basis of the grantees track-record at stage:

1.Early stage

2.Growth ready

3.Sustainable growth

Description

Key-Word & Example

Upward Accountability

“To satisfy the desires of EMCF and receive a grant, NPOs often took on activities and programs that were on the periphery of their mission”

“We try very hard not to fund charisma”

Control

“There is very little agreement among funders as to what data are relevant. The donors that ask for measurement information, and there are a number, each have their own take on what it important”

Output

“Roughly 80% of the grants made by large foundations in the US are restricted – directed to operating or developing a specific program with an average duration of less than 3 years”

Re-active selection of projects or programs, often through application, with a standardized grant-making procedure focused on a ‘mission-match’

Number of organizations facilitated to have impact + synergy of impact related to own mission advancement

Impact

“Robin Hood is often asked whether we measure ourselves with the same rigor with which we measure the success of our grantees. In fast, the two are identical. Our benefit-cost ratios capture, as best as we know, RH’s impact”

A focus on achievement of business plan forecasts

Support

“Specific performance milestones, so that effective nonprofit organizations could build their internal capacity, become durable organizations, serve more clients, and more effectively deliver on their missions"

Grantee Evaluation Self- EvaluationGrantee

Selection Self-EvaluationGrantee

EvaluationGrantee Selection

Standardized set of input, output or outcome based short term KPIs

Traditional ModelChange Depicters &Executive Organizations

Performance Driven ModelFacilitators of Change &Agents of Change

Downward Accountability

“Our first time doing due diligence confirmed how deeply false most relationships are between nonprofits and foundations and the distance that really has to be travelled to be in a real and honest dialogue”

From Mission to Impact: The Process

Mission

Learning

ScalingStrategy

Grantee Selection

G1: Strategy

G1: Impact Measurement

G2: Strategy

G2: Impact Measurement

Impact Measurement

Reporting

Learning

Scaling

Pro-active selection of organizations, on the basis of the grantees track-record at stage:

1.Early stage

2.Growth ready

3.Sustainable growth

Description Re-active selection of projects or programs, often through application, with a standardized grant-making procedure focused on a ‘mission-match’

Grantee Evaluation Self- EvaluationGrantee

Selection Self-EvaluationGrantee

EvaluationGrantee Selection

Traditional ModelChange Depicters &Executive Organizations

Performance Driven ModelFacilitators of Change &Agents of Change

3 growth stagesPotential for Sustainable Growth

Evidence of Program Effectiveness

Organizational Capacity

Proven

Demonstrated

High Apparent

Early Stage

Growth Ready

Sustainable Growth

www.emcf,org/accessed September 10, 2011Edna McConnell Clark Foundation

Description A focus on achievement of business plan forecasts

Grantee Evaluation Self- EvaluationGrantee

Selection Self-EvaluationGrantee

EvaluationGrantee Selection

Standardized set of input, output or outcome based short term KPIs

Traditional ModelChange Depicters &Executive Organizations

Performance Driven ModelFacilitators of Change &Agents of Change

“I have never in my 20 years of experience in the sector had a head of a foundation come and sit down with our board chair and head of development committee, as Nancy did, and talk

about how together we would raise resources for the organization to grow. That is categorically a completely different power dynamic from what is typical in the nonprofit

sector” CEO Daniel Cardinali, Community in Schools, One of 9 initial grantees of SIF

Number of standard structure grants made

(e.g. 50 1-3 year grants of average $300.000)

Description Number of organizations facilitated to have impact + synergy of impact related to own mission advancement

Grantee Evaluation Self- EvaluationGrantee

SelectionSelf-Evaluation

Grantee

EvaluationGrantee Selection

Traditional ModelChange Depicters &Executive Organizations

Performance Driven ModelFacilitators of Change &Agents of Change

ECSP Gids voor Impact Meten

Impact Dilemma’s

1. The negative side of impacta. Low hanging fruit - Kill innovation & risk takingb. Learning or hiding failures?c. The Human Elementd. The NPO is more… than its impact

2. Consensus on what good evidence is

3. Have capital to flow to effective organizations

“I am not a big believer in the SIF because, in my opinion, it is the role of philanthropy, not taxpayers, to take risks to fund early-stage ideas and organizations. Once an organization had proven results, the government should use taxpayer dollars to support it, and philanthropy should step away” Jacobson, Strategic Grant Partners

“I’ve grown incredibly frustrated by the disconnect between performance and access to capital in the nonprofit world. We double every single year, we get better impact measurements, and still no one even comes back to us and says “Hey, you guys are doing so great, we want to give more.”” Aaron Lieberman, Co-founder and CEO of Jumpstart

Bronnen

• CEP – Centre for Effective Philanthropy• FSG Social Impact Advisors• New Philanthropy Capital• McKinsey Social Sector Office• NEF – New Economic Foundation• The Centre for What Works

• Bill & Melinda Gates Foundation – A guide to Actionable Measurement• W.K. Kellogg Foundation

• HBS Cases• Grossman & Sesia (2011): Edna McConnell Clark Foundation – Enabling a Performance

Driven Philanthropic Capital Market• Ebrahim & Rangan (2011): Acumen Fund: Measurement in Impact Investing (A)• Ebrahim & Ross (2010): The Robin Hood Foundation• Grossman & Greckol-Herlich (2011): Year Up: A Social Entrepreneur Builds High

Performance• Grossman (2010): Jumpstart – A Culture of Performance Measurement and Management