The Key Fund Impact Tool

Introducing Key FIT The Key Fund Impact Tool

Integrating Social Finance with Social Value Reporting

Key Fund aims to deliver public benefit by providing investment capital to help its mission driven customers realise their business plans whilst achieving a commercial return for the fund

It’s all about Impact

Outputs: Our funders ask us to report outputs:“measurable unit of a product or defined service delivery”

…but impact is the real goal

The Case for EvaluationInvestor perspective

• Financial risk - established standards and best practices for monitoring/evaluation

• No consensus for how to evaluate the social impact of an investment

• In many instances there is little real evaluation at all

The Challenge

Impact Risk: Indication of certainty that output will lead to stated impactWill the money we invest result in public benefit?

The Case for EvaluationInvestor perspective

As an Investor we are committed to the evaluation of our Impact and each year we publish a report…

…more a celebration of the achievements of our amazing customers…

…publishing this report serves to reassure our funders that their faith in Key Fund is justified.

It is a powerful marketing tool…

…so we asked ourselves what if we could give our customers the ability to report on their own impact?

What if we could help organisations embed impact evaluation into their day to day routines?

We set about creating an impact measurement tool that…

• Makes complex simple (no consultants / low cost)

• Is easy to use – no need for training

• Is Concise – couple of hours work

• Is Visual

• Enables Comparison – common to all

• Is Relevant – fit local area strategies

• Is Aspirational – an introduction/ inspiration to explore further

Key FIT…the solution

Above all we wanted our customers to access it …

FREE…and offer it unbelievably cheaply to non-customers

• Provides the means for customers to report their outputs for monitoring purposes

• Links to an integrated impact measurement tool

• Online process links the customer application to the due diligence, award and defrayment process

Step One: create an Online Application - simplified customer process

Accessed via button on web site

www.thekeyfund.co.uk

Next: integrate back-office processes into customer application

Better tracking of applications through due diligence stages

Once the investment is delivered customer has access to online system for reporting their outputs – need to appoint responsible person (important)

The monitoring & reporting links to Key FIT – also available as stand alone product

The Benefits of Impact Reporting are fully explored

Explainer Video

The Key Fund Impact Tool

Simply press the button

Once logged in Customers can begin creating their impact reports

Customers can create their own bespoke reports by selecting the most relevant modules

Give the report a title & detail the period to be covered

Select Organisation or Beneficiary to input data under chosen module

…& push the button

Data Input Screen

Start building report

Input data into all chosen modules

Each module encourages the uploading of a story; a case study or testimonial

Any certificates, accreditations or awards can be uploaded

Standards can be reported

Simple Results

Example from the Employment module

Visual Results

Customers can create their own infographic

Create as many reports as you like –create reports for specific stakeholders

Feedback if problems experienced

Key FIT - a cost effective Impact Measurement Tool for organisations seeking to begin Impact Evaluation…

…for many however it will provide everything they will ever need…

…built in values & weightings - a credible compromise solution…

www.nesta.org.uk

Key FIT is not SROI

Recommended Reading

Key FIT Social Impact Value takes into account following factors:

Quantity: All customers to be encouraged to input data

Value: Values taken from The Global Value Exchange: based on research and independently verified

London/Non London: Phase one takes into account the difference in costs and values achieved of services based in London or not. Phase two will have more regional variations

…working out the values

Deadweight: not everyone using the service will fully benefit in the social value generated by the indicator. Each indicator is allocated a theme and a deadweight value assigned:

e.g. Training & Education 15%Access to training 15%Community & Social 19%Health 27%

Attrition: We know that people have other services and influences in their lives and that things might well have changed because of them rather than your service. We apply a value of 20% for this.

Working out the values

Standards of Evidence(NESTA Impact Investments)

For most of our customers the starting point is Level 1, this involves a clear articulation of why a product or service could have a positive impact.

Key FIT solutionIntroduction to Impact Evaluation

Level 5You have Manuals systems & procedures to ensure consistent replication & positive impact

Level 4You have one + independent replication evaluations that confirm these conclusions

Level 3You can demonstrate causality using a control or comparison group

Level 2You capture data that shows positive change but you cannot confirm you caused this

Level 1You can describe what you do and why it matters, logically, coherently & convincingly

High Impact Risk Low

Impact Risk & Standards of Evidence for Impact Investment

Target for end ofInvestment

Point of Investment

EvidenceStandards

5

4

3

2

1

Promotes the importance of Impact Evaluation & facilitates growth to level 3 & beyondReduces Impact Risk – management tool - prevent mission drift

Key FIT is an introduction to Impact Evaluation……it provides background information…designed to stimulate further exploration and growth

Designed for growth

• free to all customers (potentially 150+ per annum)

• provide a data base of common measures for Impact across our customer base

• support the growth of our customers• embed the principals of impact evaluation• retail at £999 per annum to Non-

customers with significant discounts to smaller organisations

Mitigates Impact Risk

The Key Fund Impact Tool

Integrating Social Finance with Social Value Reporting