Measuring Impact to Improve Your Grantmaking Process

Results, impact, and return on investment (ROI) aren’t simply buzzwords; they provide a solid understanding of grantee performance to ensure grantees reach program goals that drive change. 

With over 10 million nonprofits and non-governmental organizations worldwide, grantmakers maintain expenditure responsibility over funds granted to ensure the purposes of the grant are fulfilled. Alignment of impact measurement within the grantmaking process is a crucial component of good stewardship and governance. 

Measuring impact also enables grantmakers to measure the value of their investments and be clear about the difference they’re making with the organizations they support. Evaluation helps grantmakers learn where they can have the most significant impact and how they can demonstrate progress and better define, assess, and improve their effectiveness as grantmakers. 

Grantmakers and their stakeholders receive many substantial advantages by implementing a measurement strategy. The goal of measurement leads to the overall question: what do we need to know to make good decisions?

How Impact Is Measured

Simply put, measuring impact makes a comparison between what would have happened differently in the absence of specific output and estimating a cause-effect relationship. In other words, the impact is the extent to which an action has a particular effect. 

Data Drives Effective Measurement

Creating and growing a successful grantmaking program requires collecting the data to ensure the intended impact. What data do you need to confirm your measurement process provides accurate, meaningful results? 

Collecting meaningful data involves moving beyond simply reporting grant numbers to capture the impact of grants. Committing more brainpower, time, and money to gather data is necessary to become stronger stewards of their missions and resources.

With the right data, grantmakers have the knowledge they need to direct their resources, matching them to make progress toward their mission.

 There is a difference between having data and using data. As many as 75 percent of foundation professionals surveyed did not believe that evaluations provided any meaningful insights.

Data Collection

The first step before collecting any data is to clarify the information you want the data to provide and how you intend to use that data. Using your organization’s strategic plan or program logic model is an excellent way to identify specific questions to guide you through the data collection process. 

Many templates for logic models are available online. While they all use very similar language, minor differences may exist regarding how terms are defined and which components to include. Choose the template that best fits your needs and how you think about your work.

Another crucial decision is how your organization will collect data. Do you have the capacity and expertise to collect and analyze it internally? Another option is to work with external resources to ensure the best results.

While the data collection process may sound cut and dry, it’s not always straightforward. For example, some grants yield immediate, tangible results, like funding the construction of a hospital. However, other grants may support complex projects that make the markers of success a moving target, such as situations that require adjusting your measurements. 

In addition, cross-border projects can present regulatory, legal, and taxation structures that require another level of due diligence, potentially further complicating data collection and measurement. 

 Most grantmakers do not have the necessary resources, capacity, language skills, or in-house expertise to pursue documentation from grant candidates in various countries to conduct needed due diligence. The invaluable resources and expertise TrustBridge Global provides can help navigate regulatory nuances affecting global and complicated grantmaking. 

Measuring Is Not Only Proof; It’s Also About Improvement.

Grantmakers need to show how they advance their missions and make a difference. However, evaluation is not only about tracking the impact of grants made. It is also about gathering data to learn how to work even more effectively.

The appropriate strategy can help you better understand your impact and make necessary changes to improve that impact. Comprehensive measurement practices also give you the ability to influence the behavior of your grantees and help them do even more good with the funding you provide. Three out of four grantmakers report that they evaluate their work with an eye on improvement.

Whether you’re experienced in global grantmaking or just beginning the journey, TrustBridge Global offers an extensive range of knowledge to enhance your grantmaking capabilities.