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social impact

Building Demand For Impact Measurement: An Interview with Tris Lumley

Tris LumleyIn today’s Social Velocity interview, I’m talking with Tris Lumley.

Tris is Director of Development for New Philanthropy Capital (NPC), a U.K. think tank and consultancy that works with both nonprofits and funders. Tris focuses on both the demand and supply sides of innovation around social impact. His particular interest is putting impact at the heart of the social sector, including shared measurement, open data and systems thinking. He helped initiate, and now coordinates, the Inspiring Impact program which aims to embed impact measurement across the UK charity sector by 2022. He is also a trustee of the Social Impact Analysts Association, a member of the EU GECES subgroup on impact measurement in social enterprise, and the Leap of Reason Ambassadors Community.

Nell: A big focus of your work at NPC is making impact measurement ubiquitous in the UK’s nonprofit sector. How far is there to go and how does the UK compare to the US in impact measurement being a norm?

Tris: There’s undoubtedly been significant progress over the last decade on impact measurement in the UK, and NPC has been at the heart of that. There are several ways in which that progress is visible, as well as in the sector level surveys NPC has done to track change. For example, most charities say that they have invested more in impact measurement in the last five years, and as a result we see that it is increasingly the norm for charities to have a defined theory of change, a role within the organisation to lead on impact measurement, and to talk about their impact measurement efforts in their public reporting. Most institutional funders also say that they look for evidence of charities’ impact measurement efforts in their funding decisions. Demand for measurement advice is growing, and the impact measurement industry is growing in response – there are more consultants offering services in this area.

The growth of social (or impact) investing has also driven greater interest in impact measurement. The industry as a whole acknowledges the centrality of impact measurement and the need for social returns to be as well evidenced as financial returns. There have been a number of key developments to move the field forward here, from Big Society Capital’s outcomes matrix to the G8 Social Impact Investment Taskforce and European GECES reports and guidance on impact measurement – all of which NPC has helped to deliver.

What’s not as clear is how much progress there’s been on the use of impact measurement, rather than its mere existence. When NPC repeats our field level state of the sector research in 2016, we’ll be asking a number of questions to tease out whether impact measurement activity is leading to use of impact evidence in decision-making – whether it’s becoming embedded in practice.

My concern is that we don’t see the signs that impact measurement is driving learning, improvement, decision-making or wholesale shifts in allocating resources towards higher impact interventions, programmes and organisations. It feels like impact measurement is something that everyone acknowledges we need to do, but few have worked out how to use. With the result that it’s bolted on to the reality of organisations delivering services and raising funding, but not embedded at the core.

A few examples of what I mean: if impact measurement were driving learning, I’d expect to see lots of organisations sharing their insights on success and failure, and learning from each other. I’d expect to see common measurement frameworks which allow organisations to understand their relative performance. These are still very rare. I’d also expect to see investment by funders and investors in the infrastructure that we know is needed for learning – journals, online forums and repositories and practitioner networks. There are some emerging examples of these, like the What Works Centres, but they’re still mostly just getting off the drawing board.

Most importantly I’d expect to see charities adjusting strategies and programmes in response to their learning. Maybe I’m not looking in the right places, but the examples I do see are the exception, not the norm.

When it comes to comparing the UK and US, it’s really hard. We don’t have comparable field-level studies, and we need to work together more closely on these if we want robust insights. For example, if you compare the findings in NPC’s 2012 paper with a recent US study it looks like nonprofits are more likely to say the main purpose of impact measurement is learning and improvement. But actually we don’t know if this is the result of the questions we asked and how we asked them.

In both the US and the UK, it’s clear that the rhetoric on impact measurement has advanced over the last decade. What’s not yet clear is how the reality underlying that has shifted.

Nell: While there are many similarities between the US and UK nonprofit sectors there are some fundamental differences, in particular views about how much government (vs. private charity) should do for public welfare. How does the UK’s view of government’s role help or hurt the capacity building efforts of nonprofits?

Tris: The UK government has taken on a leading role in the social investment space, and it’s here that efforts to build capacity are most visible. Investment readiness programmes have been introduced over the past few years to build general capacity to access social investment. More recently, impact readiness programmes have arrived to do the same for impact measurement capacity. NPC has been working within these programmes to help a number of charities, and cohorts of charities, and it’s clear that they can play a major role in helping the sector to improve. But capacity-building in general has felt the effects of austerity just as much as any other area of government funding. Perhaps more so, as limited funds are increasingly focused on service delivery, not on efforts to improve services.

When NPC repeats its survey of the field, I am certain that we’ll find that limited funding to develop impact measurement capacity is still the major barrier cited by charities. It doesn’t look like anything’s going to change that any time soon.

Nell: NPC works at the nexus between nonprofits and funders, helping the two groups to understand and adopt impact measurement. In the US few funders will fund impact measurement systems, even though they want the data. How does NPC work to convince funders of the need for investments in measurement (among other capacity building investments)? What progress have you seen and what’s necessary for similar progress to happen in the US?

Tris: While a proportion of funders have for a long time supported evaluation, the majority still don’t. We’ve worked through programmes like Inspiring Impact (a sector-level collaborative programme to help embed impact measurement) with a group of funders to develop principles, and help them to embed support for impact measurement in their practice. These efforts can help those who already see the benefit of capacity-building to advance their work, but it’s tough to engage those who aren’t already thinking in this way. I think that the leap we need to make is to selling impact measurement through its benefits, by showing how organisations improve, and their impact increases, as a result. And because impact measurement isn’t yet typically embedded in organisations, those benefits aren’t as evident as they should be.

What does seem to work well is trying to get funders and charities to work together in a specific outcome area to make progress, rather than making a general case for impact measurement. Cohort capacity-building programmes, learning forums and shared measurement initiatives are all part of this. The key thing here is that then the funder is committed to the outcomes everyone’s working towards, and impact measurement becomes a tool for everyone to achieve those outcomes together.

Nell: You are part of the Leap Ambassador Community that recently released the Performance Imperative. Have you seen similar interest groups forming around these issues in the UK? And what role do you think interest groups like these play in a norm shift for the sector?

I have been privileged to be part of this amazing community of leaders, and one of a minority initially from outside the US. I’m convinced we need a similar movement here in the UK, and globally and have been discussing whether and how to approach this with the group from the start. And as co-Chair of Social Value International – a network of those working in the social impact field, I’m part of an effort to do this at the practitioner level too.

The Leap Ambassadors Community brings a human face to what is often seen as a technical subject. After 11 years of working in the social impact field, I am convinced that we cannot sell impact measurement just by increasing the supply of good technical solutions. We need a movement to build the demand for those solutions. We need the right frameworks to measure impact and manage performance. But we need the leaders to demand them, and to harness them to hold themselves accountable, learn and improve, and share what they find.

Photo Credit: NPC

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10 Great Social Innovation Reads: May 2015

social change readingMay was another busy month in the world of social change. For a start there was: a behavioral economics approach to social change, continued focus on civic tech, a tool for calculating a nonprofit’s true costs, new definitions of membership in the digital age, the evolving public library, digital sabbaticals, and much more.

Below are my 10 favorite reads in the world of social change in May, but feel free to add to the list in the comments. And if you want a longer list, follow me on Twitter, LinkedIn, Google+, or Facebook.

You can also read 10 Great Reads lists from past months here.

  1. Perhaps some solutions to social problems lie in behavioral economics. Writing in The New York Times, economists Erez Yoeli and Syon Bhanot and psychologists Gordon Kraft-Todd and David Rand argue that the opinion of others, in this case regarding the preservation of natural resources, is a strong social change motivator.

  2. Civic tech, (the use of new technology to better engage citizens in democracy) has become quite the buzzword lately. But how do we know which civic tech solutions are actually creating change? Anne Whatley from Network Impact offers some tools for assessment in that arena.

  3. And another nonprofit tool comes from Kate Barr of the Nonprofits Assistance Fund. She provides a great tool to help nonprofits calculate and then articulate to funders the full costs of their work.

  4. Daniel Stid from the Hewlett Foundation writes a thoughtful piece on what separates good strategic planning from bad, because as he puts it “The real benefit of planning is not the final document but rather the discipline the process imposes, the new information it generates, the working relationships it fosters, and the conversations, insights, and commitments it sparks.” Amen to that!

  5. In this age of social media and technological connectedness, how do we create more formal structures for belonging to institutions? Melody Kramer, formerly of National Public Radio, is a Knight Visiting Nieman Fellow working on that very question, and she offers some beginning thoughts on the project, including, “Imagine if public radio stations functioned as Main Streets…or in the same way that local public libraries do? It would transform the way people could interact — and participate — in the local news process, and would enhance the stories stations put out on air.” Fascinating.

  6. Speaking of libraries, NPR writer Linton Weeks provides a history of the public library and how it continues to (and must) evolve in the digital age.

  7. Great philanthropic futurist Lucy Bernholz has been offline for a bit, and it turns out she took a digital sabbatical. She reports that “without the addictive stimulation and distractions of digital life it feels like my brain grew three sizes.” What a great (and necessary) idea!

  8. Writing on the UnSectored blog, Marie Mainil describes the importance of building and supporting social movements to create global social change. As she puts it “Collecting data on the dynamics of local, regional, national, and international social change campaigns is the next frontier of organizing for social change. With a visual multi-level collection of ladders of engagement from across the world, social change actors would be able to better plan and coordinate tactics and actions at scale, thereby increasing their chances of success.”

  9. In May the Center for Effective Philanthropy held their biennial conference. Ethan McCoy provides great roundups of day one and day two. I almost feel like I was there!

  10. Never one to put things lightly, William Schambra cautions against what he sees as the hubris of tech philanthropists and his fear that they desire to “fundamentally…reshape the social sector in their own image, based on their supreme faith in advanced technology.”

Photo Credit: Erin Kelly

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Speaking With Social Change Leaders

Nell EdgingtonOne of the things I love about my job is that I get to travel to different parts of the country talking with groups of social change leaders about how to think about their work in new ways. I speak to nonprofit and philanthropic conferences, events, groups, even boards about trends in the nonprofit sector and how social change leaders must adapt.

Recently I have spoken to groups in Portland, Seattle, Sacramento, Dallas, and Idaho. You can see a video of me speaking to the Seattle Association of Fundraising Professionals Conference below (or click here) where I was talking about one of my most popular topics, How to Move From Fundraising to Financing.

I speak about any of the topics covered in the Social Velocity blog, but here is a general list of topics:

  • Speaking Engagements One SheetMoving From Fundraising to Financing
  • The Future of the Nonprofit Sector
  • Overcoming Nonprofit Myths
  • Reinventing the Nonprofit Leader
  • The Power of a Theory of Change
  • Getting Your Board to Fundraise
  • How To Raise Capacity Capital
  • Creating a Sustainable Financial Model
  • Messaging Impact
  • Creating a Succession Plan
  • Honest Conversations Between Funders and Nonprofits
  • The Critical Connection Between Mission and Money

If you want to learn more about having me come speak to your event or group, download the Social Velocity Speaking One Sheet, or visit the Speaking page to learn more.

Photo Credit: Social Velocity

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10 Great Social Innovation Reads: September 2014

social innovationThere were some pretty exciting things happening in the world of social innovation last month. From a new fund to make philanthropy more effective, to a new blog series written by funders making the case for investing in nonprofit leadership, to some ideas for making performance measurement more accessible to small nonprofits and arts and culture organizations, to some interesting partnerships between philanthropy and city government.

It all made for a great month of reads. Below is my pick of the 10 best reads in social innovation in September. As always, add what I  missed to the comments. And if you want a longer list, follow me on Twitter, Facebook, Google+ or LinkedIn.

You can read past months’ 10 Great Social Innovation Reads lists here.

  1. The Fund for Shared Insight, a collaboration among seven major foundations, launched in September. The group plans to “pool financial and other resources to make grants to improve philanthropy…to encourage and incorporate feedback from the people we seek to help; understand the connection between feedback and better results; foster more openness between and among foundations and grantees; and share what we learn.” They plan to be very transparent with this entire experiment. I can’t wait to see what develops.

  2. Another development in the realm of improving philanthropy was the launch of the Stanford Social Innovation Review blog series where foundation leaders discuss why and how they have invested in nonprofit leadership development. As I mentioned earlier, Ira Hirschfield from the Haas Foundation kicked off the series, and Surina Khan from the Women’s Foundation of California was next up. To have such an open dialogue about nonprofit capacity investments, particularly around leadership development, is amazing. Let’s hope it encourages similar conversations outside the blogosphere.

  3. And the third piece from the world of philanthropic enlightenment, Daniel Stid of the Hewlett Foundation wrote a great post about ending the nonprofit starvation cycle. As he put it, “Effective leaders need to be willing to take the risk of saying something that a funder might not want to hear when their organization’s long run effectiveness is at stake. If they are not, then shame on them. Funders, for our part, should fund the full cost of the work we are asking our grantees to undertake in a way that leaves their overall organization and its finances whole; if we don’t, then shame on us.” Amen!

  4. There is further evidence that philanthropy as we know it is changing – a new report by The Economist takes a hard look at how Generations X and Y (those born between 1966 and 1994) are transforming philanthropy, particularly around “a strong desire to have a measurable, enduring impact.” This is exciting because if donors increasingly invest based on results, we can shift more money to social change. As the authors of the report put it, “The young generation of givers is focused on data, measurement and demonstrable results. More than any other generation, they want to check facts, know all the information ahead of time and ensure that they are well-informed at every stage of the process.”

  5. And there was lots to say about measuring performance this month. The Foundation Center and WINGS, a global network of 90 support organizations serving philanthropy in 35 countries, announced the creation of The Global Philanthropy Data Charter to gather and share philanthropy data for public benefit.

  6. Measuring impact is complex and costly, but Carly Pippin from Measuring Success, offers 4 steps for how small nonprofits can assess impact affordably.

  7. Measurement is particularly challenging in the arts and culture arena because, as Natasha Bloor of The Old Vic Theatre explains, “There is an understandable reticence within the cultural and creative industries when it comes to proving the social value of art. For many, the arts have an intrinsic worth that cannot be mapped or measured, with the primary benefit found in creative self-expression itself, rather than the longer-term effects experienced afterwards.” But she offers a new approach that they have found very effective.

  8. And for a completely free way to assess the social value of building low-cost housing, child-care centers, and health clinics there is the Social Impact Calculator, developed by the Low Income Investment Fund. They developed the tool to measure the effect of their own work and then decided to share it.

  9. Stephanie Jacobs of the Nonprofits Assistance Fund offers some tips to turn your board into the financial leaders they need to be.

  10. And finally, there were some interesting examples of partnerships between local government and philanthropy aimed at strengthening cities. Rona Jackson from Living Cities described 5 ways philanthropy and local government can work together. And the Kalamazoo Promise, a partnership between local philanthropists and city schools that pays tuition at a Michigan college for any student who graduates from a Kalamazoo school, shows these ideas in action.

Photo Credit: Valerie Everett

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A Monster List of Social Innovation Conferences

A Monster List of Nonprofit ResourcesToday is Halloween, which, in my world, means that beyond candy, and trick or treating, and pumpkins it’s time for my annual “Monster List of Resources.” A few years ago I started the tradition of offering a list of resources for nonprofit leaders on Halloween (you can see past lists here and here). Each list is culled from the much larger, constantly evolving list of conferences, organizations, articles, books, blogs, and reports on the Social Velocity Resources Page.

This year I want to focus on the ever-growing number of conferences in the social innovation space. I’m really excited by how many really interesting gatherings are occurring.

But what did I miss? Please add to the list in the comments below. And don’t forget to check out (and add to) the much larger list of resources here.

Happy Halloween!

Social Innovation Conferences

Photo Credit: Wikipedia

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10 Great Social Innovation Reads: November 2012

With a national election, hurricane Sandy, and Giving Tuesday, November was a busy month. All three events encouraged reflection about social change. And at the same time we had some pretty interesting arguments for how two of the sectors supporting social change (philanthropy and government) needed to shift as well.  All made for a fascinating month of reading.

Below are my top 10 picks for what was worth reading in November in social innovation. And as always, please add what I missed to the comments. And if you want to see an expanded list, follow me on Twitter, Facebook, LinkedIn, Pinterest or ScoopIt.

You can see the 10 Great Reads lists from past months here.

  1. Even though hurricane Sandy hit at the end of October, much of November was spent cleaning up and reacting to the powerful storm. Patrick Davis reflects on what our reaction in natural disasters says about human nature.

  2. And from Sandy we moved into the national election where, once it was over, there was much to learn. First Lucy Bernholz marvels at Nate Silver (the statistician that very accurately predicted the outcome of the election) and wonders what the corollary is in the philanthropic world. She asks “Who will be the first big philanthropist to put predictive analysis to the test in the social sector?” And apparently there is much to be learned from the Obama campaign’s email tactics during the campaign.

  3. November also saw the launch of “Giving Tuesday,” an online effort to kick off the philanthropic season, just as Black Friday and Cyber Monday are the beginning of the commercial Christmas season.  While it seems like a great, innovative idea, Tim Ogden disagrees arguing that it won’t “materially affect giving in any positive way.”

  4. It looks like it’s time to get tough with foundations. The PhilanTopic blog argues, “No More Free Rides: Foundations Need to Increase General Operating Support Now.” Amen to that! And GlassPockets, the Foundation Center’s online effort to increase foundation accountability and transparency now has 50 foundations participating, representing $138 billion in assets and more than $6.5 billion in annual giving, or 15% of all U.S. foundation giving.

  5. And the government has work to do as well. Former Social Innovation Fund Director Paul Carttar writes a call to action about what government can do to more effectively encourage social innovation.

  6. The drum beat for nonprofits to measure outcomes continues. Writing on the Stanford Social Innovation Review blog, Mollie West and Andy Posner encourage nonprofits to go the way of business and government and start using The Math of Social Change.

  7. And there is a really interesting new development in the ongoing effort to compare and rate social change organizations. The Social Impact 100 Index was unveiled in November. Modeled after the S&P Index in the financial markets, this effort by the Social Impact Exchange analyzes and picks the best 100 nonprofit investments for donors. It will be very interesting to see how this effort evolves and whether it transforms the nonprofit rating space.

  8. Despite a tough economy, charitable giving rose slightly in 2011. But the real news is that online giving has grown to a $22 billion industry.

  9. And speaking of fundraising in the online world, social media has completely disrupted the old model for how a nonprofit engages a donor, so says Julie Dixon and Denise Keyes. And Kivi Leroux Miller agrees.

  10. On the Managing the Mission Checkbook blog, Kate Barr cautions that nonprofit sustainability isn’t just about revenue, it’s about 1) working to achieve your mission 2) integrating a successful business model and 3) adapting and changing. Agreed!

Photo Credit: kadorin

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10 Great Social Innovation Reads: August 2012

There was much discussion in August about money. We heard that foundations should be more open to risk and should engage with nonprofits to find the best solutions. And we found out some fascinating information about how Americans give. And there were some exciting developments in the newest social sector funding vehicle, the social impact bond. What a great month!

Below are my top 10 picks for what’s worth reading in August in the world of social innovation. But please add what I missed to the comments. And if you want to see more of what catches my eye, follow me on Twitter, Facebook, LinkedIn or Pinterest.

You can see the 10 Great Reads lists from past months here.

Here’s August’s 10 Great Reads in Social Innovation:

  1. It looks like social impact bonds are starting to take off in America. This innovative social financing partners private investors, public bonds and nonprofit organizations to solve social problems. Goldman Sachs has gotten on board with a $10 million investment in a New York City program to reduce prison recidivism rates.

  2. Writing in the New York Times, Georgetown University professor Peter Edelman breaks down the factors contributing to a 15% poverty rate in America and what needs to change to improve it.

  3. I can’t tell you how many times I hear complaints from nonprofit leaders that social media won’t really improve fundraising. Try these on for size. Geri Stengel (guest posting on Beth Kanter’s blog) shows how the Genocide Intervention Network found major donors through social media, HubSpot offers 7 Creative Ways Nonprofits Can Use Social Media to Drive Donations and Kivi Leroux Miller explains How Social Media and Fundraising Fit Together.

  4. Guest blogging on the PhilanTopic blog, Derrick Feldmann argues “We need donors who are truly willing to embrace risk and invest significant dollars in potential solutions that may not yield immediate results but get us closer to our ultimate objective, even if it’s only by demonstrating what doesn’t work.” Amen to that! And Rodney Foxworth seems to agree.

  5. On the Stanford Social Innovation Review blog Sheetal Singh writes that there is a new active, engaged citizen movement in America, but that nonprofits are missing the opportunity to participate. She argues that “nonprofits need to realize that the “new citizens” are no longer passive recipients of their services; they demand engagement and inclusion. If nonprofits don’t adapt to this paradigm, they will be left out of the conversation.”

  6. One of my new favorite bloggers, Mark Hecker, does it again with a great post encouraging nonprofit and government leaders to be “fearless” in setting goals that will knock social change out of the park.

  7. A new study by the Chronicle of Philanthropy reveals how Americans give to charity. It turns out you give more if you have less or live near those who have less. But there is much more data to explore on their website. Fascinating.

  8. Forbes uses the World Wildlife Fund of The Netherlands as a case study to demonstrate the Five Steps to Growing Your Social Impact.

  9. Lucy Bernholz takes issue with foundation application processes and calls instead for a model “where foundations and nonprofits are working together – from idea generation through proposal, implementation and assessment – to actually solve problems.” Wow, imagine that.

  10. The Gates Foundation blog demonstrates how support of public libraries is a critical part of transforming developing countries.

Photo Credit: Library of Congress Archives

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Doing Good Work is No Longer Enough

There is an increasing drumbeat in the world of social change that nonprofits must start measuring their work. Thought leaders like Mario Morino with Leap of Reason, Bill Shore’s recent blog post “What Does Success Look Like?” and David Henderson’s (recently interviewed on the Social Velocity blog here) ongoing Full Contact Philanthropy blog, to name a few, are adding to the chorus.

The argument among thought leaders, funders, raters and others in the social change sector is increasingly that nonprofits MUST:

  1. Figure out what they exist to do (a theory of change)
  2. Create a disciplined operational model for creating that change
  3. Measure whether the change is actually happening
  4. Articulate that change in order to garner more support

But all of this is fairly new to the nonprofit sector and not yet widely practiced (by a long shot). In fact, some of these ideas are still quite controversial. Let’s take #2 for example, “Creating a disciplined operational model.” David Henderson analyzes this well in his post last week. Although David gets a little bogged down in jargon, his idea is a really great, but probably touchy, one.

He argues that nonprofits must become more discerning and disciplined about who they provide service to. Because nonprofits have limited resources, they cannot serve everyone. Therefore instead of serving people on a first come first served basis (which is the norm), they should instead serve those who they can best help. In other words, they should determine and then serve those populations of people who will benefit the most from their intervention:

In the case of the youth workforce development program, while all low-income youth would qualify for services, we might have a preference for placing people into the program who are likely to complete the internship. In this case, one could use historical data to fit a predictive model that provides some insight into what characteristics made an individual more or less likely to have completed the program in the past. Under this framework, social welfare maximization would involve not only placing people into the program, but maximizing the number of people in the program who complete the internship.

The idea is that instead of filling up the program with any youth who have a need, the nonprofit would create more social change by thoughtfully selecting types of children on whom they could have the most impact.

To the nonprofit world, which is very much focused on trying to help as many people as possible, this is a potentially radical idea. But if smartly employed, nonprofits could actually provide more social change through this disciplined method. And in an increasingly resource-constrained environment, it makes sense for nonprofits to want to get the highest return on their program resources.

In order to take this approach, however, nonprofits must have a theory of change. You cannot create social change if you don’t:

  • Know what you want that change to be, and
  • Measure whether that change is happening

In an increasingly competitive marketplace, it is getting harder and harder for nonprofits to attract support. The harsh reality is that those nonprofits that develop a smart theory of change, measure whether that change is happening, and then articulate the change to supporters will increasingly be the ones that survive. Not to mention that they will be the ones that actually create social change.

Photo Credit: Colin Smith

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