Let's start with a story.
ICU baby is a nonprofit that works to provide the emotional, financial, and informational support families and babies need to thrive during their NICU experience.
In September 2021, the organization realized it needed to refine its strategy for sharing its story and raising support, especially during the COVID-19 pandemic when so many organizations and communities were competing for contributions. The organization decided that to succeed, the ICU baby team should start measuring and leveraging its social impact.
Don't worry—we'll jump back to the end of this story later. Much like ICU baby, your organization may be looking for ways to measure your social impact, whether you're a nonprofit trying to provide stakeholders with evidence that your programs and initiatives are making a difference or you're a grantmaking organization wanting grantees to track trends in their work over time.
To help, we've created this guide to bring you up to speed on the basics of social impact measurement. We'll cover:
It's time for your team to take the guesswork out of understanding its impact. Let's dive deeper into the process of collecting, analyzing, and leveraging key data points so you can paint a full, rich picture of your organization's success.
As explained in our full guide to impact measurement and management, the term impact refers to "the tangible changes or results that your organization generates for its community as outlined by its mission, vision, and goals."
Social impact is more specific, referring to the effects your organization has on individual people, communities, and societal conditions or issues.
There are several different types of impact in addition to social impact, like environmental impact or economic impact, and often these different types will overlap depending on your organization's focus and work.
To truly get a clear picture of your organization's social impact, you need to gather and analyze data that shows you the progress you're making toward the smaller goals that will get you closer to accomplishing your mission. More on this process below!
But why should your organization learn how to measure social impact? Think of it this way: Impact measurement allows you to go beyond saying, "Our organization is making a true difference in society" by helping you to back up this claim with data.
Having impact data on your side then allows your organization to:
To experience all of the benefits of measuring your social impact, you'll need robust impact measurement and management (IMM) tools, like UpMetrics, that can help you make sense of your impact data. Jump ahead to learn about the UpMetrics platform!
If you've never before measured your organization's impact strategically, it can be tricky to know where to start. Let's walk through the process you can follow to get clear impact insights you can share with your community.
At UpMetrics, we have a tried-and-true methodology for measuring social impact that can serve as the foundation of your own process: the DeCAL Methodology.
This is a nuanced process, so in the sections below, we'll break it into bite-sized steps you can follow to kick off your impact measurement journey.
DeCAL Methodology Phase: Define
Whatever your organization’s overarching mission is, it’s complex and can't be accomplished overnight. Instead, you get closer to accomplishing your mission every time you achieve a smaller goal or objective.
The same goes for measuring social impact—it's difficult to evaluate your organization's impact as a whole if you're not first looking at your progress toward more granular objectives.
So, start your impact measurement efforts by revisiting your mission, vision, and values. Then, define the objectives you want to work toward that will help you reach your mission, realize your vision, and live out your values. Create your objectives with these dimensions of impact in mind:
Outlining specific objectives that take these dimensions into account allows you to develop a theory of change, a conceptual framework that empowers your organization to think about how your programs, initiatives, and projects lead to positive outcomes for those you serve.
Here are a few examples of objectives:
Once you have a few objectives to work with, it's time to select your key impact indicators (KIIs). Similar to key performance indicators (KPIs), KIIs are measurable values that show you how much progress you've made toward accomplishing an objective.
Here are some examples of KIIs that relate to the objectives listed above:
Note that for each objective, you may want to track more than one KII. Having multiple indicators of progress can be valuable as you can more holistically evaluate your progress toward achieving your objectives.
DeCAL Methodology Phase: Define
At UpMetrics, our IMM platform allows you to use your chosen objectives and KIIs to build an Impact Framework. This is a tool that can serve as a visual (and mental) map for measuring and leveraging your impact.
Here's how the process works on our platform:
Our Impact Framework Builder is FREE for organizations to use because we believe every organization should have access to the tools and data they need to maximize their potential and achieve long-term sustainability.
Want to try it for yourself?
DeCAL Methodology Phase: Collect
Next it's time to gather the KII data that will help you track your progress toward your objectives. Here are some tips for doing so:
There are two types of data, quantitative and qualitative:
Organizations tend to put a lot of stock in their quantitative data. After all, numbers are typically easier to collect and analyze, and quantifiable impact may seem to be more compelling to your stakeholders.
However, qualitative data is just as important as quantitative data. It breathes life into the cold hard numbers and adds valuable context and depth to your impact insights. As you gather your data, ensure you're looking for qualitative information that enriches your understanding of the progress toward your goals.
DeCAL Methodology Phase: Analyze
Once you've organized and consolidated your data in one place, it's time for you to analyze it for patterns, trends, and changes that indicate progress toward achieving your objectives and moving your overarching mission forward.
This is where it can be valuable for your organization to partner with a data scientist or to use an IMM platform like UpMetrics.
An IMM platform helps with the often complicated and time-consuming statistical analysis needed for quantitative data and the thematic analysis necessary for qualitative data. Having the right tools and expert guidance on your side can make the process much more manageable and help you produce high-quality, accurate, and actionable insights faster.
Note that data analysis won't always show positive progress toward accomplishing your objectives. Your impact data may show weak spots in your operations, and that's normal. What matters is how you plan to respond to that information.
DeCAL Methodology Phase: Leverage
Now that you have insights into different areas of your organization's impact, it's time to share that information with the world!
You can do this in many ways, from creating an impact report to presenting your findings at your next board meeting to including impact data in your fundraising marketing materials. How you communicate your impact will depend on the audience you have in mind and what their expectations and preferences are.
DeCAL Methodology Phase: Leverage
It's one thing to report on your organization's impact and another thing entirely to use that information to improve your work and optimize your impact.
Prepare to take action on your impact insights, whether they're positive or negative. Use your data to strategize your next moves and get your team invested in making improvements or doing more of what's working.
Once you get into a good grove with the social impact measurement process, try these tips to take your IMM efforts to the next level:
UpMetrics is a leading provider of IMM tools for nonprofits, foundations, impact investors, and corporations focused on corporate social responsibility (CSR).
We know that it's important for your organization to have the data that quantifies and communicates the impact your work has on the people you serve.
Our CEO, Drew Payne, said it best: "In today’s data-driven funding environment, access to data is critical. UpMetrics’ platform empowers the impact investment and philanthropic communities with data and actionable insights to inform decisions, allocate resources, and design quality programs that effect lasting change."
When you invest in our platform, you not only have access to the tools you need to build your Impact Framework, collect data, and analyze it. With our paid Managed Services program, you can also gain access to our team of social sector experts, who can assist you with:
Our talented team is our special sauce, ready to support you in all your impact management needs and eventually hand the reins over to your own team so you can continue to manage and measure your impact in-house!
With UpMetrics, you don't have to go it alone when it comes to measuring your organization's social impact. We have the tools and know-how to take your impact measurement efforts to new heights.
Still wondering what UpMetrics can do for you? Let's return to ICU baby and its impact measurement journey!
Once ICU baby saw the need to measure its social impact, it decided to focus first on its Transportation Assistance Program (TAP), which helps to offset transportation costs for low-income families visiting their baby in the NICU.
To analyze the program's impact, ICU baby gathered data like:
The organization also worked with UpMetrics to fill in the gaps in their data, allowing them to get a fuller picture of TAP's effectiveness and the story of why the program is so important.
Specifically, the organization was able to discover that a high percentage of single moms were traveling dozens of miles per day to be with their babies in the hospital. This eye-opening insight stresses the positive impact of TAP, and even helped ICU baby to land a competitive grant!
Hear from ICU baby about how UpMetrics has made a difference for its mission:
The work you do improves the lives of individuals, strengthens communities, and impacts social issues. This is why it's essential for your organization to start measuring its social impact—so you can fully understand the positive difference you're making and do more for the beneficiaries who rely on you.
Use the guidance above to get started today, and don't hesitate to reach out to the UpMetrics team if you have any questions!
Want to keep learning about the world of impact measurement and management? Check out these resources: