Almost every social entrepreneur feels that their venture is working. They see the people, hear the stories and know that something is changing. But a foundation, a major donor or a government ministry needs more than a feeling. They want to know exactly what changed, for how many people, and how you know.
Impact measurement sounds like something reserved for large organizations with a research department. In practice, even a small venture can measure seriously, with simple tools and no special budget. This guide is for social entrepreneurs who want to get started, and it explains the concepts, the steps and how to report to funders.
What is social impact?
Social impact is the change a venture creates in people's lives, in a community or in society: change that would not have happened without it. Not the number of activities you held, and not the number of people who came. What happened to them as a result.
The change can be in employment, health, education, a sense of belonging or access to services. It can be small and tangible, like a child who reads better, or broad, like a change in a local authority's policy.
Why measure, even when the venture is small?
Measurement is sometimes seen as just another demand from funders. In practice, the venture itself gains the most from it:
- To know what works. Simple data shows which activity makes a difference and which makes less of one, and where it is worth investing.
- To raise funds. Almost every application to a foundation or a call for proposals asks what you have achieved so far.
- To keep your team. Volunteers and staff who see the results of their work stay longer.
The impact chain: from activity to change
The most convenient way to think about measurement is as a chain with four links. Each link answers a different question:
- Activity: What do you do? For example, employment workshops for young adults.
- Output: What comes out of it right away? 12 workshops, 60 participants, 45 who completed the whole cycle.
- Outcome: What changes for participants in the near term? How many of them found work within six months.
- Impact: What changes over time? How many of them are still working after a year, and what it has done for their income and independence.
Most ventures measure the first two links well, because they are easy to count. Foundations are mainly interested in the last two. Build your measurement so that you reach at least the third link.
What is a theory of change, and how do you write one?
A theory of change is your explanation of why your activity will lead to the change you want. It connects the links of the chain and sets out the assumptions behind them. A simple way to write it is as a single sentence:
"If we do this activity, with this audience, then this change will happen, because our assumption is that..."
The important part is the "because". If you assume that young people do not find work because they lack connections, the activity has to create connections. If the assumption turns out to be wrong, the theory of change helps you understand what to change. Write it as early as the stage when you are setting up the venture, and update it as you learn.
An illustrative example, with a fictional venture: "If we hold short workshops with local employers for young people who have finished their army service, then more of them will find work within six months, because our assumption is that what they mainly lack is acquaintance with employers and confidence in interviews." The metrics follow directly from this sentence: how many young people met employers, how many got to an interview, and how many were hired.
How do you choose simple metrics?
A good metric is one you can actually collect, that is directly linked to what you are trying to change, and that someone outside the venture will understand. A few rules:
- Few metrics. Two or three outcome metrics are better than twenty metrics that nobody has time to collect.
- A metric you can repeat. The same question, in the same wording, at the beginning of the program and at the end.
- A starting point. Without a figure from the beginning, you cannot show change.
- A mix of numbers and stories. The number shows scale, and the story shows meaning.
How do you collect data on a small budget?
Most of the data you need can be collected with free tools you already have:
- A registration form, kept short, that records who came and what their situation is at the start.
- An attendance list at every session, so you know who keeps coming and who drops out.
- A short questionnaire of three to five questions, at the beginning of the program and at the end.
- A phone call or a message a few months after the program ends, to see what has stayed with people.
- Shared data from a school, a local authority or a partner organization, when this is possible and permitted.
- Quotes and observations from the team, written down in real time and not from memory.
When you collect information about people, you need to protect their privacy: explain why you are collecting it, ask for consent, collect only what you need and keep the information somewhere secure.
What does this look like in the field? Examples from the ventures
The ventures operating at Alumot report on their results in different ways, and each one illustrates a different layer of measurement:
- Me'ever, the Hearing Voices Network in Israel, reports on the scope of its activity over the past year: 4 groups with about 40 participants, 25 introductory sessions and workshops for professionals, and about 600 people who were introduced to the approach, 185 of them professionals who took in-depth workshops. These are clear outputs that are easy to understand.
- Boomerang ran a survey among its active core volunteers. 80% of the participants reported that their activity is very meaningful for the community, and 80% said they had learned new skills. This is a measurement of outcomes, based on the participants' own reports.
- AnuYoga notes on its venture page that it leads evaluation studies and outcome measurement, in order to strengthen the integration of body-based therapies into the healthcare system.
Notice the difference: counting participants and sessions is an output. A survey that checks what changed for the participants comes closer to an outcome. Both matter, and it is worth knowing which one you are presenting.
How do you report to foundations and donors?
A good report is short, honest and easy to read. It does not have to be perfect; it has to be credible. A structure that works:
- What you planned and what actually happened, including what did not work.
- Two or three key numbers, compared with the starting point.
- One story of a participant, with their permission and without identifying details.
- What you learned and what you will change in the next period.
- How much it cost, and what that came to per participant.
Foundations appreciate a venture that reports honestly about its difficulties as well. Reporting like this builds trust, and trust is what brings the next grant. We go into working with foundations in our article Philanthropic foundations, and into the place of measurement within the full document in our article A business plan for a social venture.
Four common mistakes in measuring impact
- Putting off measurement. Without a figure from the beginning, you cannot show change at the end.
- Measuring only what is easy to count. The number of participants does not tell you what changed for them.
- Attributing everything to the venture. If a participant found a job, other things may have helped too. Choose your words carefully.
- Hiding weak results. They teach you the most, and serious funders know it.
How does Alumot fit in?
At Alumot, social impact is one of the criteria we use to assess ventures, and every entrepreneur commits to reporting on the venture's activity and results. That is why measurement is part of the conversation from the very beginning.
The support includes a quarterly status and consulting meeting with the nonprofit's CEO, guidance on writing project cards, and preparation for meetings with donors. Volunteers with experience in social entrepreneurship and business development work with the entrepreneurs on what needs to happen now, including how to present what the venture has already achieved.
Frequently asked questions
What is the difference between an output and an outcome?
An output is what comes directly out of the activity, such as the number of sessions or participants. An outcome is what changed for the participants as a result of the activity, such as finding a job or doing better at school.
Do you need an outside consultant to measure impact?
Not at the start. A registration form, an attendance list and a short questionnaire before and after are enough to get going. An external evaluation usually fits once the venture grows, or when a funder asks for one.
How many metrics should you choose?
Two or three outcome metrics, alongside basic output metrics. A few metrics that really get collected are better than a long list that stays on paper.
When do you start measuring?
From the very first pilot. The data from the first cohort is the starting point against which you will compare everything that follows.
What do you do when the results are not good?
Learn from them. Check which assumption in your theory of change did not hold, change the activity, and report on it honestly. This is a normal part of every venture's journey.
Want to see how social ventures present the change they make? Meet the ventures, or tell us about your venture.