Impact InvestingIntegrating your organization in a philanthropic portfolio

DFW Philanthropy in Action Conference

Heather Himes

The Innovation House

DFW Philanthropy in Action Conference

What I Found

• Changing Language to focus on outcomes and

procedural impact instead of “warm fuzzies”

• Need to compare organizations across the

charitable sector

• Need to measure the entire impact in a

particular geographical area as a snapshot and

over time

DFW Philanthropy in Action Conference

Resources

• Stanford Social Innovation Review

• ImpactBase

• Global Impact Investing Network

• Acumen

• Root Capital

• McKnight Foundation

• McArthur Foundation

DFW Philanthropy in Action Conference

Today’s Questions

• What is Impact Investing?

• What does this mean for development?

• Can this help me raise money?

• What does this mean for the future of

fundraising?

DFW Philanthropy in Action Conference

High Impact/Social ReturnsLow Impact/Social Returns

Hig

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Fin

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rnPHILANTHROPY

TRADITIONAL

INVESTMENTS

IMPACT

INVESTMENTS

Financial First

Impact First

DFW Philanthropy in Action Conference

SOCIALLY RESPONSIBLE INVESTING

avoiding investments that are not ethically compromised

SUSTAINABLE INVESTING

Investing in companies who incorporates good works into

for-profit company’s governance, environmental impacts,

etc.

SOCIAL ENTERPRISE

A company that generate positive social impacts through

a traditionally for-profit business model

“An adventurous approach to funding unpopular social causes.”

-John D. Rockefeller III (1969)

DFW Philanthropy in Action Conference

Financial Returns - EXAMPLE

1.5 Billion People Lack Electricity Globally…

• Mpowerd

• d.light

• General Electric

DFW Philanthropy in Action Conference

Social Returns

• Expected Returns Method

– Cost Benefit Ratio

– Anticipated Benefits vs. Cost

• Theory of Change Method

– Logic Models to identify gaps

– Risk Management planning

DFW Philanthropy in Action Conference

Social Returns

• Mission Alignment Method

– Current vs. Historical with monitoring

– Operational performance

– Effectiveness

• Financials

• Organizational Structure

• Service Delivery

DFW Philanthropy in Action Conference

What does this measure?

What does this not measure?

DFW Philanthropy in Action Conference

What does this measure?

• Directionality

• Intentionality

• Change over time

• Risk

• Responsiveness to community needs

DFW Philanthropy in Action Conference

What does this not measure?

• Breadth of the organization and its

footprint

• Depth of impact on the audience

• Leadership and Financial baseline

• Community work vs. profit-driven work

• Comparison across sector

DFW Philanthropy in Action Conference

DFW Philanthropy in Action Conference

Level Playing Field

• Dosage/Duration of Impact programs

• Breadth of services

• Organizational Efficiency

• % of Budget on Charitable Purposes

DFW Philanthropy in Action Conference

Finding a Baseline Social Value

% Target

Population

Served

XEfficiency

Rating

Duration

X% Budget Spent

Toward Charitable

Cause

= IMPACT SCORE

Efficiency Rating:

• Board Contributions

• Replicated Programs

• No Issues in Audit

• Data Management/Outcomes Protocol

• Leadership in Place for 12 + months

Duration:

• (5) One Time Annually

• (4) Series Annually

• (3) Intermittent Throughout Year

• (2) Almost Every Day

• (1) Continuous

DFW Philanthropy in Action Conference

IMPACT SCORE - EXAMPLE

EDUCATION ORG #5Serving: All kids living in poverty from 5 to 8 years old

in three zipcodes

Calculate % Target Population…

1,500 kids in this footprint with 80% poverty rate

1,500 x 80% = 1,200

Clients = 900 students So… 75%

DFW Philanthropy in Action Conference

Education Org #5

% Target Population: 75%

Efficiency Rating: 4 (ED is new)

Duration: 2 (3 days per week during school

year and 2 on-site summer camps)

% Budget: 100%

((75% x 4)/2) x 100% = 1.50

DFW Philanthropy in Action Conference

How Does This Impact Current

Fundraising Efforts?

• Another tool in the toolbox

• Show comparatively where you are in

comparison to the other organizations

• Identify other partners in the community

• Engage with Impact Investment

foundations with more knowledge

DFW Philanthropy in Action Conference

DFW Philanthropy in Action Conference

Practical Application of Impact

Investments in Fundraising

DFW Philanthropy in Action Conference

What is the Future of

Fundraising?

DFW Philanthropy in Action Conference

Questions and Discussion

DFW Philanthropy in Action Conference

Heather Himes

Grants Manager

Girls Inc. of Tarrant County

hhimes@girlsinctarrant.org

817-259-1050