Proving your impact: what funders want from charities

We’re busy at this time of year with social return on investment work for councils and charities keen to demonstrate their impact.  Rural environments bring special challenges to delivering outcomes and our approach which links a spatial and a predictive component to SROI is really helpful in giving a rounded rural view of impact. I’m happy to share our thinking with Hinterland readers to give them some “do it yourself support” in this context. It works for both commissioners in local authorities and for rural organisations which are being commissioned. In the meantime this article demonstrates why tools like SROI are increasingly important. It tells us:

Among government commissioners and grant-makers, the expectation for proof is high. The Cabinet Office’s Centre for Social Action, set up in 2013, has invested £36m in projects tackling health, social mobility and rehabilitation, among others. Charities applying for grants must demonstrate the quality of their existing evidence base against new common Standards of Evidence, designed to give confidence to the funder that an intervention is having a positive impact.

Meanwhile, continuous pressure on councils to deliver more effective services on tighter budgets is driving changes in the way they work with the sector. Andrew Donaldson, head of strategic policy and partnerships for Staffordshire county council, says they have undergone a big shift toward commissioning services from charities, rather than making grants.

“We are commissioning for outcomes, so if we buy a service from the market then we treat a charity the same as anyone else,” Donaldson explains. “The onus is on the provider to convince us they have the capacity and track record to deliver against the outcomes we want.”