How To Know The Impact Of Philanthropy
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1 An Outcomes Toolbox Robert M. Penna, Ph.D. Author: The Nonprofit Outcomes Toolbox San Diego Grantmakers San Diego, California August 26, 2014 Workshop: Some key Outcomes tools
2 The Challenge: Assessing the impact of philanthropy in a way that is both easy to use and to understand! 2
3 The old-fashioned, traditional approach Counting Number of grants made Value of grants made/amount disbursed Number of grantees Number served in total 3
4 A more recent approach: The Philosophical Approach 1 Charitable Giving Philanthropic Investment Strategic Philanthropy Social Entrepreneurism 1. Stannard-Stockton, Sean. "The Four Core Philanthropy Approaches." Tactical Philanthropy. March 4,
5 Still other approaches: The Center for Effective Philanthropy 2 : analyzing social problems and implementing strategies to solve those problems. Philanthropic Investors: organizational analysis and the ability for new growth capital to be used to grow specific nonprofit enterprises. Effective Altruism: cost effectiveness of grantee level impact. How much bang for a buck? Serving the greatest number for every dollar donated. 2. As per Stannard-Stockton, Sean. "Are the Four Approaches to Philanthropy Valid?" Tactical Philanthropy. March 23,
6 Irrespective of approach however some sort of measure a yardstick, barometer, or whatever- is needed to assess performance! 6
7 Perhaps the best. The idea of measurable Outcomes 7
8 Today s topics: 1. What is an outcome? 2. What is/how to craft an Outcomes Statement? 3. The Outcomes Tree 8
9 4 important insights 1. You are not donors. You are investors; and are owed a return; 2. You are not investing in the availability of services. You are investing in change; 3. Those changes are best described by your targeted outcomes, and those of your grantees; 4. Both progress and results assessment should be based upon the degree to which you and your grantees hit your respective targeted outcomes 9
10 Why targeted? Outcomes are not something you identify after the fact. They are goals you set before you begin! 10
11 So what, exactly, is an outcome? Deceptively simple: An outcome is not what you/your grantees do; it is what happens because of what you/your grantees do! 11
12 The Outcomes Statement What is it? Why Use it? 12
13 What is it? The clear, precise, unambiguous statement of what will be achieved, the return on an investment 13
14 Why use it? Tells your grantees what you expect; Guide to staff; The yardstick against which you can track progress and against which success will be measured. 14
15 For the institutional investor: it takes a partnership to succeed Both progress and results assessment should be based upon the degree to which you and your grantees hit your respective targeted outcomes You cannot succeed unless your grantees hit their targets; which, in turn, contributes to you hitting your targets 15
16 So what does this imply? 1. You need an outcome system in place 2. You need to ensure as best you can that your grantees have an outcomes system in place as well and that they can, know how to, and do use it. 16
17 Go to the example 17
18 What do we see? 18
19 Practice Your turn.. 19
20 The Outcomes Tree 20
21 The Outcomes Tree A process chart leading from Milestones through Performance Targets to a well defined, targeted Outcome 21
22 Building YOUR Outcomes Tree: the pieces. 1. Your Outcome Statement: the promise of what you are going to achieve; 2. The Performance Targets: the 3-5 things you MUST accomplish to reach the outcome (failure of any 1 is a fatal flaw) 3. The Milestones: the steps you must take, the THINGS YOU MUST DO, to reach each Performance Target 22
23 It looks like this. Outcome Statement Performance Target 1 Performance Target 2 Performance Target 3 Performance Target 4 Performance Target 5 Milestone 1 Milestone 1 Milestone 1 Milestone 1 Milestone 1 Milestone 2 Milestone 2 Milestone 2 Milestone 2 Milestone 2 Milestone 3 Milestone 3 Milestone3 Milestone 3 Milestone 3 Milestone 4 Milestone 4 Milestone 4 Milestone 4 Milestone 4 23
24 In practice. Milestone 2 Milestone 2 Milestone 1 Milestone 3 Milestone 1 Milestone 1 Milestone 1 Milestone 2 Milestone 1 24
25 Practice Your turn.. 25
26 Wrap-up, feedback, and Questions 26
27 Thank you for your time and participation.. Contact: Dr. Robert Penna PO Box Magnolia Station Wilmington, NC
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