impact measurement

At this past year’s SoCap, I led an Open Space conversation around the language that we are using in the social business/enterprise/venture space. I have observed over the past few years, as this sector evolves and pushes boundaries, there is much inconsistency in how we communicate what we are doing.  These organizations are generating revenue by tackling some of the world’s biggest problems, yet there seems to be much confusion in the marketplace from those who are building the businesses and those who are investing in them.

I was at an event for the launch of an endowment for a foundation that a client donates to and the Executive Director made the comment that she does what she does because people, like those in attendance understand the difference between serving people and changing lives.

What does this mean? People ask me how I source the organizations that I recommend - I usually answer it boils down the client's core values and from there we look into the organization. By getting to know the Executive Director, board members, sometimes clients, other donors as well as the financials we see which organizations are reporting on, "number of people served" versus "numbers of lives changed."

Strategic philanthropy, at the end of the day, is about changing lives. It is about looking at your long-term wealth management goals and integrating effective community investment and engagement strategies into you portfolio.

A year ago (April 1, 2008) I posted a piece on questions to ask before making your charitable donation - The Big Decision; now more than ever, your dollar needs to stretch further. The same thing can be said about your charitable dollar, because at the end of the day you count the number of people you serve, or you can count the number of lives that you have changed.