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Mackenzie Strategic

insights • ideas • innovations

ISSUE thrEE • may 2014

impact reporting: What difference are you making and how do you know?

ContentsISSUE thrEE • may 2014

contact uSFor more details please contact carol Bezaire at: 416-967-2053 1-888-653-7070 [email protected]

This is a Mackenzie Investments Publication. Production and design by Ext. Marketing Inc.

5 Inputs, Outputs, OutcOmes and Impact By Janet Gadeski

charities already know that measuring dollars spent does not lead to an understanding of impact. But what does?

3 Impact: the JOurney frOm measurement tO meanInG By Janet Gadeski

impact measurement done well may actually counteract the less meaningful measures that some agencies and members of the public use. But the right questions are not easy to define, let alone answer.

8 BeyOnd the head cOunt: measurInG LastInG chanGe By Janet Gadeski

Funders may misunderstand the distinction between results (or outputs), outcomes and impact. the hardest thing to measure? impact, particularly for complex, intractable problems like poverty, homelessness and substance abuse.

14 a funder’s VIew By steven plunkett

For the Mackenzie investments charitable Foundation, reporting along the lines of a “business” instead of a “cause” allows donors to make informed choices about where their money goes.

16 teLLInG dOnOrs aBOut yOur Impact By terry smith

six tips to help charities effectively report to donors on impact.

19 heLpfuL exampLes By Janet Gadeski

three examples of impact reporting to inspire your own communications.

hOw canada’s LarGest fOundatIOn InVests fOr Impact By andrea cohen Barrack

ontario trillium Foundation has a broad mission: to create healthy and vibrant communities. What does meeting that mandate look like? are ontario’s communities healthier and more vibrant because of our investments? how can we transform our available resources into intended social impact?

11

from Carol BezaireLetterWelcome to the thIrD issue of Mackenzie Strategic Philanthropy.

i am honoured to assume the stewardship of this publication as a result of my colleague, Brad

offman, departing Mackenzie investments. i have great respect and gratitude for Brad’s passion and

expertise in the philanthropic world, and his contributions over eight years at Mackenzie investments.

the Mackenzie Strategic Philanthropy publication was Brad’s idea, and i’m thrilled to be a part of it.

this edition deals with return on investment in charitable funding. today, nonprofits face increasing

competition for funding as well as for member support. there is increased attention paid to tangible

results derived by charities based on the funds received. Besides the high competition, there are

other factors that play a part in a charity being selected for funding. stories of corruption or fraud

within charitable organizations as described in the media have resulted in greater demand for

accountability in the nonprofit sector. accountability comes in three basic forms — output (immediate

results), outcome (longer term remedial impact) and social impact.

this issue addresses the social impact of charitable funding from a number of different perspectives,

and relies on the insights of key leaders. From simple tips to overarching strategies, we hope to provide

you with a variety of potential tools to address and mitigate the issue within your own organization.

if you would prefer hard copies of this publication, or would like to catch up on our initial two issues

for your board, please refer to the link on the home page.

Please spread the word about Mackenzie Strategic Philanthropy!

– carol Bezaire

ContRIbutoRs


1

Janet gadeSkiEditor, Hilborn Charity eNEWS President, Hilborn

hilborn is a canadian publisher of independent news and analysis for the social profit sector.

andrea cohen BarrackCEO, Ontario Trillium Foundation

andrea is recognized for her expertise in making organizations more effective by ensuring that systems are integrated and impact is both measured and assessed.

carol BezaireSenior Vice President, Tax, Estate and Strategic Philanthropy, Mackenzie Investments

in her role, carol leads a team of Practice Management and tax and estate Planning professionals who support and offer opportunities to help financial advisors stay well informed in an ever-changing marketplace.

Steven PlunkettChair, Employee Committee, Mackenzie Investments Charitable Foundation

steven works with a nationwide group of Mackenzie employees responsible for staff volunteerism, fundraising programs, and overall corporate philanthropy and community involvement.

terry SmithPresident & CEO, Philanthropic.ca

terry is President & ceo of Philanthropic.ca, providing advice and support to individuals and family foundations with their philanthropic giving.

we acknOwLedGe wIth GratItude thOse whO shared theIr InsIGhts thrOuGh InterVIews recOrded In thIs Issue Of Mackenzie Strategic PhilanthroPy:

Ken Wyman, Professor, Fundraising Management, Humber College

Susan Pigott, Executive-in-Residence, Ashoka Canada

Joan Blight, Philanthropy Consultant, Strategic Philanthropy

James temple, Corporate Responsibility Director, PriceWaterhouse Cooper

hilary Pearson, President, Philanthropic Foundations of Canada

macKEnzIE StratEgIc PhIlanthroPy.

2

the ontario trillium foundation (otf)...

of charity leaders agree their organizations are experiencing diffi culties fulfi lling their mission.3

agree they are seeing increased demands for the products and services they off er.3

charities with annual revenues of $1.5 million or more are more likely to predict being better able to carry out their missions.3

charities with annual revenues of less than $150,000 are less likely to predict being better able to carry out their mission.3

range, foundations typically don’t have staff to collect and analyze reports2

$5-$10 millionIn the

86% of donors consider themselves knowledgeable about the causes they support.

this is a 9 point jump from the 2011 survey.1

has granted more than $1 billion to nonprofi t

organizations across ontario in the past 10 years.4

will invest another

$1 billion over the next decade.4

is thelargest granting

foundation in canada.4

53%

49%

Stats&facts

1 Source: From “What Canadian Donors Want”, a 2013 survey by the Association of Fundraising Professionals and Ipsos-Reid. | 2 Source: Philathropic Foundations of Canada. | 3 Source: Imagine Canada Sector Monitor, Vol. 4, Number 1. | 4 Source: Ontario Trillium Foundation.

3


3

imPactthe Journey from

measurement to meaning

Janet gadeSki

was there ever a golden age when nearly everyone thought charities were doing a good job? yes, some demographers say. the civic generation (born 1945 or earlier) were inclined to trust charities, at least the ones

with big names or visible work, without questioning.


4

But civics are no longer the majority

in our population. Boomers,

gen Y, gen X and Millennials

challenge all kinds of authority,

including charities. and when

those demographics reach for their

chequebooks, disburse government

dollars, determine foundation grants

or report through the media, they

no longer assume that charities are

effective. they want proof.

as with any emerging idea, some of

the new demands and assumptions

about impact or effectiveness are

misguided. the charity with the

lowest operating expense, the

cheapest cost per dollar raised,

the tiniest staff budget or even

the most people served is not

automatically the most effective

in its class. and if it is, its impact

is almost never built on the

characteristics i’ve just mentioned.

iS a heavy tv a Better tv?imagine canada’s chief economist

Brian emmett points out (with a

little help from marketing guru seth

godin) that when we approach

impact measurement, we risk

“select[ing] priorities that are more

easily measurable and perhaps

more easily fundable.” that’s as

helpful as weighing a tv set to

evaluate its clarity.

in the meantime, efforts to

measure impact seem marked

by misguided effort, irrelevant

statistics and ambiguous, unhelpful

conclusions. here’s an excerpt from

evaluation’s next Generation, srik

gopalakrishnan’s review of the U.s.

foundation sector for the Stanford

Social Innovation Review:

A recent survey on nonprofits and

their relationship with data found

that only 50% of nonprofits are

tracking any kind of outcome data.

Foundations are no different. A

benchmarking study of evaluations

in foundations found that only

38% of foundations reported,

“Management regularly models the

use of evaluation in its own decision

making.” The authors of the study

go on to suggest that this appears

to be less about the willingness of

foundations to use evaluation, and

more about the poor fit between the

decisions they need to make, the

evaluation questions they ask, and

the data that nonprofits produce. In

other words, evaluation isn’t giving

people what they need.

But there are hopeful signs. More

charities recognize that they should

be eager to demonstrate impact in a

way that reaches beyond bodies in

programs. More donors and funders

want to give wisely and invest

time in the research, thought and

site visits that lift their own sights

beyond numbers served.

impact measurement done well

and promoted unceasingly could

actually counteract the meaningless,

sometimes harmful measures that

some agencies and members of the

public use. the right questions are

not easy to define, let alone answer.

they lead us into mysteries such

as long-term hunger alleviation,

improved life expectancy,

environmental impact, sustainability,

changes in family and community

life, and lifestyle-related diseases

– trends that can take years,

sometimes generations, to track.

in canada, some organizations and

funders have recognized that the

most meaningful impact, the most

sustainable systemic changes, are a

collective responsibility. that leads

to even more questions! But at least

we are on the way.

carol and i hope that wherever you

are in your efforts to discern the

impact of your charity or network,

the ideas in this issue of Mackenzie

Strategic Philanthropy will help you

move ahead.

a recent survey on nonprofits and their relationship with

data found that only 50% of nonprofits are tracking any

kind of outcome data.50%


5

inputs, outputs, outcomes impact

Janet gadeSki


6

charities already know, of course,

that measuring dollars spent does

not lead to an understanding of

impact. But what does? numbers

of participants or clients? Large

numbers can be impressive for

funders making quick judgements.

But do they really reflect progress

in individual lives? improvements

in a community? changes to the

systemic factors that created the

problems in the first place?

a growing number of thought

leaders in the field of impact

evaluation believe that impact

cannot be measured easily

or quickly. “impact should be

understood as a journey from inputs

to outputs, then to outcomes, and

finally to impacts,” explains Pwc

corporate responsibility director

James temple. “Many organizations

are still stuck in the world of

outputs and outcomes. it’s hard to

move to impact.”

“If your decisions are always dollar-driven,

you’re not going to have the outcomes you’re

looking for,” warns Winnipeg philanthropy

consultant Joan Blight. that’s true whether the

dollars you’re discussing are spent on program,

administration or fundraising.

know the differenceLet’s start by defining the terms

James uses. inputs are everything

and everyone that a charity uses to

deliver its mission. outputs are what

the charity produces – educational

programs, shelter, counselling,

concerts, health information,

etc. When charities report on

their programs, the outputs are

the easiest to report. how many

attended literacy classes? how

many were housed, and what were

their demographics? how many

concerts were produced?

outcomes and impact are more

challenging to track. Both address

the question, “What difference did

it make?” outcomes focus on the

individual in the short or medium

term. they may include numbers,

but those numbers measure

something that goes beyond the

charities’ own programs – for

example, the number of participants

in a literacy class who were

motivated to seek a high school

equivalency diploma.

impact is longer-term and reaches

beyond the individual. With literacy

class graduates, for example,

their ability to read stories to their

children might lead to those children

doing better in school. their ability

to read everything from medication

labels to memos from a supervisor

might lead to greater prescription

compliance or improved

performance at work.

“ social entrepreneurs are

not content just to give a

fish, or teach how to fish.

they will not rest until they

have revolutionized the

fishing industry.“

— Bill drayton, aShoka founder and ceo


7

You can see the challenge of gathering the data required to assess such wide-ranging changes. here are some

tips from tris Lumley and James noble, writing for The Guardian’s Voluntary sector Blog:

You may never know all of the difference

you make. But the more you ask, the more you

will learn about the impact you intended to have...

When Winnipeg’s Inner city renovation (Icr) began probing their impact, local merchants told them

something they hadn’t expected: icR’s improvements to the neighbourhood’s dilapidated housing had helped

to drive drug dealers out of the area. You may never know all of the difference you make. But the more you

ask, the more you will learn about the impact you intended to have and the even broader-ranging changes

you might not have suspected.

1. know why you’re measuring your impact. is it to help you and your trustees understand and improve your impact? to communicate

your results to funders? to feed back to your stakeholders? Whatever it is, make sure your

approach gives you what you and your evaluators need.

2. set the right questions. What problem are you trying to tackle? What changes do you want to bring about and how?

What are your goals? how will you know if you’ve achieved them?

3. don’t assume that you have to measure everyone and everything yourselves. Look at what other institutions have already learned and ask how it applies to your work.

there are plenty of studies and reports on the impact of literacy classes, for example.

4. tools and frameworks When collecting your own data, look for tools and frameworks to borrow before you start

designing your own questions. collect some information from everyone and more detailed

data from a sample.


8

how is our community better because of our work?

that may be the toughest question a nonprofi t ever has to answer. “we can’t get stuck

in outcomes only,” says humber college fundraising management professor ken wyman.

“as governments cut back and load more responsibility onto the nonprofi t sector, we

need to know whether we’re creating eff ective solutions. does spending $10,000 on

services for a homeless person prevent $50,000 in emergency room use, for instance?”

measuring Lasting change

head count:Beyond the

Janet gadeSki


9

chasing the data for such

widespread, complex issues is

challenging and expensive. “Look

at the medical model of testing,”

ken continues. “they follow people

for 20 or 30 years at the cost of

millions of dollars. one solution

when evaluation is too complex or

expensive to do on your own is to

partner with academics who can

devote some research time to you.

they can bring skills, student labour

and professional understanding to

your review.”

susan Pigott of ashoka canada also emphasizes the importance

of a long timeline. “if you’re trying

to accomplish large scale systemic

change, measurement must be

long term,” she affirms. ashoka’s

entire philosophy is built on that

commitment. intentional long-term

relationships with ashoka Fellows

allow the organization to assess

the long-term impact of Fellows’

initiatives according to carefully

developed criteria. But smaller

charities and funders struggle to

establish such criteria, especially

when time and other resources

are limited.

higher need, aBStract imPactWinnipeg philanthropy consultant

Joan Blight of Strategic Philanthropy

sees a direct correlation between

the nature of the need that a

program targets and the difficulty

of measuring its impact.

“impact on needs that rank higher in

Maslow’s hierarchy is much harder

to measure," she notes. "Fortunately,

some funders understand that

individual development measures

(such as self-actualization) are

much more qualitative. it’s crucial

to know your potential funder and

whether they understand and value

the impact your charity is striving

for. an experienced philanthropist

will see the whole range of needs,

but people who are just starting

out may be in a different, less

sophisticated place.”

imPact emPhaSiS rare among Smaller funderSthe larger foundations in

philanthropic foundations canada

(pfc) believe that funders must

do more than just demand impact

evaluation from the charities

they support. “We get to better

measurement by starting with a

lot of dialogue among funders,”

explains PFc’s president hilary

Pearson. “What do we want to

accomplish? how can we play a part

in bringing about a big change?”

she sees a trend among the larger

foundations in PFc. generally, she

explains, the larger they are, the

greater their staff capacity. that

sometimes goes hand in hand with a

more strategic approach to systemic

change that may involve working

together, creating coalitions and

even operating programs.

“on the other hand, many small

funders don’t have capacity

themselves to be demanding or

sophisticated about measures,” she

admits. “in the $5- to $10-million

range, foundations typically don’t

have staff to collect and analyze

reports. they do want to know what

happened and whether the money

was applied for the purpose for

which it was given. But at that level,

they very seldom ask or hear what

difference is made.”

“ they must ask what

community vitality look

like, understand their

own role in their

community ecosystem,

then play to their strengths

to create change”

— JameS temPle, Pwc corP. reSPonSiBility officer

Self-actualizeAchieving one’s full potential, including creative activities

SELF-FULFILLMENT NEEDS

Self-esteemPrestige and feeling of accomplishment

Love & belongingIntimate relationships/friends

Safety & SecuritySecurity, safety

Physiological NeedsFood, water, warmth, rest

PSYCHOLOGICALNEEDS

BASICNEEDS


10

think decadeS, not yearSinexperienced funders – or those

whose own resources are limited –

miss the distinction between results

(or outputs), outcomes and impacts,

she continues. impact is the hardest

thing to measure, particularly for

complex, intractable problems

like poverty, homelessness and

substance abuse. and both charities

and funders need to understand the

extended timeframe that impact

measurement requires.

hilary cites calgary’s 10-year plan

to end homelessness as an example.

“We’ll see its impact over time.

the outcome will be fewer people

being permanently homeless. the

impact will be that they get jobs,

they’re better off, they send their

children to school. But you still want

to know – was the c that we chose

to do better than the a or B we

considered? You can never know

for sure. impact measurement will

always be approximate.”

imPact a collective reSPonSiBilityPFc members are in good

company as they move towards

viewing impact as a collective

accomplishment. the United Way

and community foundations now

pay a lot of attention to working

together to share skills and

expertise, notes Pwc corporate

responsibility director James

temple. Both use the insights of the

Vital Signs community mapping

process to inform their work.

Like funders, charities must work

together to gauge their full impact,

James believes. “they must ask

what community vitality looks like,

understand their own role in their community ecosystem, then play to their strengths to create change.”

today, that’s starting to happen more and more through collaborations like Innoweave (an initiative of the J.W. Mcconnell Family Foundation) and the community knowledge exchange (developed by the ontario trillium Foundation and community Foundations canada). although it is not yet common to see funders helping charities evaluate impact, these thought leaders may well be launching a trend that will benefit funders, charities and service users alike.

MASLOW’S HIERARCHY OF NEEDS


11

hoW canada’S largeSt FoUnDatIon InVEStS For imPact

andrea cohen Barrack


12

over the past decade, the Ontario trillium

foundation (Otf), an ontario government-

funded agency, has granted more than $1 billion

to nonprofit organizations across ontario.

over the next decade, otF will invest

another $1 billion.

those numbers make otF the largest granting foundation in

canada. But regardless of size, all funders face the daunting

question: What did our investments accomplish? how do we

know that we made a difference?

Part of the answer can be found in the stories we hear about

projects that we have funded. often, there is also data suggesting

that projects achieved their objectives. however, this anecdotal

data fails to answer the broader question of impact.

are we making communitieS Better?otF has shifted in its focus as we work to evaluate the impact

of our investments. otF has a broad mission: to create healthy

and vibrant communities. our focus now rests on defining

success. What does meeting that mandate look like? are

ontario’s communities healthier and more vibrant because of our

investments? how can we transform our available resources into

our intended social impact?

We want to clearly define the impact we strive towards and focus

our grant-making on evidence-based strategies to achieve the

impact we intend. to do this, otF has worked with the canadian

Index of wellbeing to define “healthy and vibrant communities.”

We have commissioned an ontario-based ciW report that was

released in april, and starting next year, we will align our granting

budget to invest in projects which will help ontario to be a leader

in the indicators we select.


13

collaBoration iS eSSentialWhile we are canada’s largest

granting foundation, we know that

we are a teaspoon in the ocean. We

have become increasingly aware

that in order to build healthy and

vibrant communities across the

province, we need to collaborate

in our approaches to investing and

measuring impact. as we start to

target our investments at specific

indicators of community well-being,

we will also need to work with the

not-for-profit sector and other

funders to collectively set goals, and

measure and demonstrate results.

With these partnerships, we can

make efficient use of our investments

to effect positive systems change –

and collective impact.

a number of internal and external

catalysts have influenced the

Foundation’s increased focus of

leveraging investments for collective

impact and shared measurement.

Like many others, otF has had to

cope with a decrease in our available

granting budget. at the same time,

our applicants and grantees have

indicated that they need deeper

grants over a longer time frame to

get results. the increasing fiscal

pressure otF has encountered and

the growing demand for granting

dollars have galvanized us to find

ways to leverage our investment.

these shifts have played a critical

role in contributing to otF’s goal

of leveraging our resources by

seeking partnership opportunities

to fund projects for deeper

collective impact. this year, we

have partnered with two private

foundations – the Weston Family

Parks challenge and the Gordon and ruth Gooder charitable foundation. these partnerships

help otF to strengthen the impact

of our investments while building

support for shared measurement

and shared outcomes through

common objectives.

our theme at otF is “investing for

impact.” We know how we want to

change this province for the better.

We also know that we cannot do

it alone. as we move forward, we

hope that otF can catalyze change

by working collectively with other

funders and organizations.


14

as the canadian population

ages, there are many practical

reasons for individual donors

to look at how their charity

dollars are used. donors want

to see the impact of their

donations. that, in turn,

puts increasing pressure

on charities to show the

results of their work in the

community or in areas in

which they operate.

Being able to articulate the value

that a charity brings so that the

objectives and results are clear

to donors can help strengthen

the overall trust and engagement

of donors.

at Mackenzie investments, the

employer/employee charitable

Foundation supports charities in

the communities we serve. impact

reporting helps the Foundation

make informed choices when

selecting the charities with

whom we deal.

the Foundation typically donates to

smaller-sized charitable organizations

focusing on children and families

at-risk. a description (or impact

Report) from our partner charities on

how our grant has been allocated is

something our donations committee

pays close attention to. it’s important

for us to know how well the programs

we support are impacting the

communities we serve. however,

we often find that charities are not

providing donors with enough detail

as to how their grants are impacting

the community.

a funder’s viewSteven Plunkett


15

helP your chamPion communicateeach of the charities supported

by our Foundation is linked with a

Relationship Manager (volunteer

Board or committee members)

who acts as the charity’s point

of contact throughout the year.

each Relationship Manager reports

back to the Foundation with any

pertinent updates. this structure

allows the Relationship Manager

to understand how efficiently the

charity is functioning, but without

a proper stewardship report

describing the impact of a donation,

it can be more difficult for the

Relationship Manager to express the

program’s benefits to the donations

committee, especially when

granting decisions are being made.

our Foundation sees that some

charities report on what their donors

ask for, which does not necessarily

showcase whether the charity is

achieving its goals. therefore, it is

important for donors to know how

to ask the right questions.

funding aPPlication may Seed your imPact rePortWhen charitable organizations

that are not current recipients

apply to our Foundation for

funding, they complete a lengthy

donation application form with an

entire section on Reporting and

Accountability. We ask:

What type of activities is the

charity proposing to undertake

with the donation requested?

What are the benefits, both

qualitative/quantitative, and

the anticipated results?

how is the success of the

program measured, and how

is this communicated back?

in essence, this can be considered

a report on the impact the charity

hopes to make.

the donations committee also

takes a close look at the charity’s

financial statements to gain a

better understanding of the

charity’s sources and uses of cash.

this allows the committee to

determine if donations are flowing

to the anticipated recipients or

used for administrative costs,

which makes a difference in the

decision-making process.

When it comes time to finalize

granting decisions, we evaluate

the applications of new candidates

alongside our current partner

charities. this is precisely where

having quantitative and measurable

descriptions of a program’s impact

on the community is helpful for

both the donations committee and

the charities we support.

in short, reporting along the lines

of a “business” instead of a “cause”

allows donors to make informed

choices about where their money

will go.

the donations coMMittee aLso takes a

cLose Look at the chaRitY’s FinanciaL

stateMents to gain a BetteR UndeRstanding

oF the chaRitY’s soURces and Uses oF cash.

16

do your donorS aSk you what the imPact of their

gift will Be? if that haSn’t haPPened yet, you need to

get ready. no longer are moSt donorS content JuSt

to write a cheque to a charity. they are Becoming

PerSonally involved with their giving and want to

See what difference their funding makeS.

terry Smith

telling Donorsimpactabout

your


17

at philanthropic.ca, we help individual donors and family foundations assess

the impact of their philanthropic support. some provide very small grants to

many organizations, while others generously support canadian charities with

millions of dollars. all of them, though, want to know whether their support

changed anything for the people that the charity serves.

Larger charities receiving large grants should consider formal impact studies,

but smaller charities may not be able to afford such reviews. how can they

balance scarce resources between reporting back to donors and delivering their

programs, especially if programs are funded by many very small donations?

here are six tips for reporting to donors on impact without going into a lot of expense.

1. relate to your charity’S miSSion and mandate

Before you approach a donor, review your mission

and mandate. What are you trying to achieve? What

are your overall goals? how does this donor request

help move you in that direction? how will your

desired outcome move you closer to your charitable

goals? Make sure you stress that when you seek

funding from your donors.

For example, if your mission is to help those in

poverty and your mandate is to run a school

breakfast program, ask yourself how the breakfast

program will help reduce poverty. You cannot

possibly account for an overall reduction in poverty

because of your one program; however, over the

long term you may be able to show that children

attending the breakfast program stayed in school

longer and developed lifelong skills to find work and

contribute to society.

2. clear exPectationS

When you meet with your prospective donor

or submit your application, be clear about what

their gift will mean to your charity and how it will

advance your cause. indicate what kind of reporting

you will be able to provide and how often. Most

donors are very flexible as long as they understand

what to expect.

3. look for more than JuSt numBerS

numbers are important, but discovering impact

takes deeper examination. With the breakfast

program above, the charity can begin by asking

participants what the program means to them, and

asking teachers and principals if they have noticed

any changes in the children. are they more alert in

class? are their grades improving? is there a change

in their social skills? if the charity has access to

parents, the charity can ask these parents what the

program means to them and to their children. their

testimonials will help the charity and its supporters

understand what donors’ gifts and grants have

accomplished.

4. invite the donor to the Program

nothing expands a donor’s understanding more

than visiting your facility or program. they see for

themselves that the breakfast program is being

well used, the kids are enjoying the food, and the

facility is clean and adequate. they may hear from

teachers about the effects of the program and how

the charity is viewed by the school, the students and

the community.

some donors may even want to help prepare

or distribute the food just to see how the whole

operation works. that will help them to understand

your report more fully when you send it in.

86%


18

5. viSualS tell the Story

Many donors will not be able to visit your program, but you can send the

program to them in the form of a short video or some photos with your

report. in the case of the breakfast program, letters from participants, a

parent or teacher also help donors understand what their support means.

6. regular uPdateS and rePortS

all donors deserve to know what difference their funding makes, but

not all donors need individual reports. an annual report or a regular blog

posted on your website or sent to all your donors will keep them up to

speed on your organization’s activities and progress.

For those donors with whom you may have specific agreements, or who

have given you designated funds, ensure you report back as expected.

if you have received substantial support, make sure your report reflects

the level of support.

donors like to hear how their funds are helping others, so if you have

had a breakthrough or something you think the donor would like to know,

keep in touch with short email updates along with your regularly scheduled

reports. keeping donors informed will motivate them to engage further

in your organization and help them understand that you are indeed making

an impact.

these simple steps will get you started on reporting on your impact. once you

try a few of these tips, you will find other things within your organization that

will help you tell your story and keep your donors engaged.

Source: “What Canadian Donors Want”, 2013 survey by the Association of Fundraising Professionals and Ipsos-Reid

86% of donors consider themselves knowledgeable about the causes they support, a nine-point jump from the 2011 survey.*


19

Finally, a word about reporting on your impact, once you know what it is. you may be able to arrange site visits, open houses and other kinds of front-line experiences for your key funders. For those individuals, personal experiences are always the most intimate and powerful.

But most charities will not find it feasible to create such experiences for all their supporters. that’s why we’re closing this issue of mackenzie Strategic Philanthropy with three examples of impact reporting to inspire your own communications.

HElPFul examples

Janet gadeSki


20

By 2009, icR was able to report some longer-lasting

change:

employees have indicated that they feel they

are getting along better with others as a result

of their employment with icR

target employees continue to enjoy their work

at icR and most view icR as a good career

opportunity

Long-term employees noted an improvement

in their technical skills

define, demand, deScriBe

Finally, the ashoka canada impact study addresses

the challenge directly, asking, “how do you know when

you’ve revolutionized an industry?” their answer is found

in a careful description of the five kinds of impact they

want their Fellows to make over five to ten years, as well

as clear criteria for what that impact looks like.

Fellows seeking to change “market dynamics and value

chains,” for instance, are expected to:

increase access to goods and services

create new markets

create value where a value didn’t exist

generate income for the poor

change the flow of market information

Both charities and funders still have much to learn

about the tools and timeline of impact measurement,

and especially about the patience required for impact

to become discernible. But through innovative (though

limited) funding, collaboration, information sharing

and commitment, canada’s best charities, donors and

grantmakers are definitely engaging the new expectation

of impact.

effective video

unity charity teaches youth to express and transcend

their stress through arts-based leadership programs

(breakdance, spoken word performance, beatbox and

graffiti art). a rotating slide show on their home page

leads to a video called “how Unity impacts communities

across canada”.

the video succeeds through showing more than telling.

it includes a testimonial from a school board trustee

and community leader, and personal testimony from

participants. But the real power lies in scenes of

excited, engaged youth working with and performing

for their peers.

near the end, we see a Unity vocalist and beatboxer

improvising joyously with ... his middle-aged high school

principal playing an accordion. the mutual respect,

acceptance and creativity between these two individuals

speaks vividly of Unity charity’s impact.

multi-year comPariSon

Inner city renovation (Icr) is a Winnipeg general

contractor and social enterprise with a mission to provide

quality employment for inner-city low-income residents

and quality general contracting services in Winnipeg.

icR published a social return on Investment (srOI) report card. including seven years’ worth of reviews

in the same document (2003 through 2009) allows

an analytical reader to see both short-term outcomes

and long-term impact, since the organization was

founded in 2002.

Unfortunately though, the report describes both short-

and long-term accomplishments as “outcomes,” which

masks the difference between outcomes and impact.

the 2003 report contains outcomes like these:

Most employees use bank accounts rather than

cheque cashing services

only 5% of staff continue to use food banks and

frequency has dropped

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