Impact Investing Integrating your organization in a philanthropic portfolio DFW Philanthropy in Action Conference Heather Himes The Innovation House
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
h F
inan
cia
l Retu
rnL
ow
Fin
an
cia
l R
etu
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
817-259-1050