7 Tips to improve the social measure of your grantmaking

As a grantmaker, measuring your social impact is important. 

Why? You’ll want to see the actual impact your funding and organisation has made. Calculating the social impact of your efforts displays the relevance of the work to staff, clients, investors, government agencies and the entire community.

It demonstrates the value of the investments. And, it aids the assessment of the organisation’s programs to ascertain whether or not the desired objectives are being achieved.

But, you might not see the social impact you want. Let’s go over ways you can improve the social impact of your grantmaking.  

1. Define your expectations

To improve the social impact of your grantmaking, it’s important to first outline your expectations. What do you want to achieve through grantmaking? By clearly stating your mission, goals and any targets, you present a clear and understandable roadmap that will ensure you take the necessary steps to make the most impact. 

2. Do your research and adopt a strategic approach 

The next step is to conduct thorough research into the issues you are trying to address. To amplify the social impact of your philanthropic endeavours, you need a profound understanding of the challenges you hope to rectify. Dig in to identify the root causes, previous steps taken to salvage the situation as well as why the previous solutions didn’t yield the desired results.

At this stage, it’s helpful to recognise that many social issues are intertwined. Consider any intersectionality that might need to be addressed. 

The insight gained from these will inform your grantmaking strategy. Of course, if you plan to increase the social impact of your grantmaking, a grantmaking strategy is imperative. You don’t want to take uncalculated spontaneous steps; it would be a waste of resources.

Lay out a detailed course of action that aligns with your original expectations and goals.        

3. Prioritise data and impact measurement

Measuring and improving social impact go hand-in-hand; what gets measured gets improved. With data, you can identify the strengths and weaknesses of various projects. Armed with this relevant information, you can make data-driven decisions that will yield better results in your philanthropy. 

To be sure that there’s improvement in social impact, collect data on the current state of the target community before funding the charitable project. This information will serve as the basis for comparison to gauge how much the social impact has increased after your grant has been used. 

When gathering data, it’s vital to use both quantitative and qualitative data sources such as surveys, interviews and participant observations. They’ll give a well-rounded understanding of the situation, past and present. It’s also helpful to break down data by demographic factors such as age, gender and socioeconomic status to ensure that the social impact of your grants isn’t lopsided.

Your social impact measurement framework should concentrate on the right metrics. Consider key performance indicators that are in sync with your original target. Instead of focusing on vain metrics, focus on quantifiable metrics directly related to the social impact you want to measure.

4. Support the grant recipients

For your grants to achieve their maximum impact, you might have to do more than just fund nonprofits. Sometimes, these recipients need greater operational abilities to make the most impact with the resources provided to them. Attaining such competencies on their own might prove challenging.

It’s important to help them build their capacity. To provide capacity-building support to your grantees, consider offering mentorship and staff-training programs. Such learning opportunities will sharpen their skills. You can also provide technical assistance to help with any accounting, management and compliance needs.

The reality is that, as a grantmaker, your goals are birthed by your grantees. By helping them operate optimally, you’ll improve the social impact of your grantmaking.       

5. Collaborate with third parties

For greater social impact, it’s important to team up with knowledgeable external entities. These third parties could be professionals in the field or other stakeholders such as community representatives. 

Engaging them is crucial for two reasons. One is that they can provide uncommon insight that will help polish your grantmaking strategy. Their hints will ensure that your resources are channelled to the right causes and recipients. 

The other is that they can effectively gauge the social impact of your charitable donations over time to determine if there’s truly any improvement. To detect improvement in the social impact of your grants, a trained unbiased eye is necessary. 

6. Give precedence to impactful programs and sustainable solutions

Focus on grant applications and projects that align the most with your goals. Projects that promise to have the most positive impact on the lives of people should be at the forefront of your grantmaking. Likewise, give greater attention to proposals that present lasting solutions instead of quick fixes. 

Channelling your resources to such charitable projects will ensure the enhancement of the social impact of your grantmaking.   

7. Implement technology

Crucial in the conversation of amplifying the social impact of your grantmaking is technology. Technology in the form of grant management software such as Good Grants can tremendously boost the effect of your charitable donations to nonprofits for a number of reasons. Firstly, the online application process saves time, reduces paperwork as well as the administrative burden that follows it and makes for a more efficient review process.

Also, a grants management software can help with seamless data collection and analysis as you can easily gather information about your grant recipients and their projects. Similarly, it makes real-time monitoring and automated reporting possible, guaranteeing accurate and instant reporting. And, software can help improve your communications across your team, grantees and community to improve the experience and expectations across your grant or funding lifecycle. 

Measuring social impact is essential to running a successful grant or funding program—and getting the results you desire. These tips above can enhance the social impact of your grantmaking and improve how you measure your success.