In Part 1 of our grants readiness series, we talked about how foundation funder expectations have shifted over time. Where they were once able to take a chance on ambitious language and strategic plans alone, they are now looking for clear evidence of impact. This is the focus of Part 2 in this series.
For funders, this evidence of impact often takes the form of data, typically a combination of outputs and outcomes. In addition to incorporating impact data into your grant narrative, they can also be showcased in an annual impact report. Whether it’s a one-page document or something more elaborate, this document can serve a variety of purposes, including:
As a “leave behind” after connecting with a foundation’s program officer, or as a way to keep existing relationships warm.
As an attachment to your grant application or report (and in fact, some funders allow an impact report to satisfy the reporting requirement!).
Beyond foundation funders, it can even be shared with individual donors, including as hard copies during fundraising events.
Many organizations link to this on their website as a public record, as a way to demonstrate transparency, increasing public awareness and trust.
So, exactly what kind of data goes into an impact report, and how do you know whether you’re communicating outputs or outcomes? Once we’ve got these definitions sorted, we’ll share tips to help your organization streamline the ways you capture your data, and ensure you’re using that data to tell the right story about your impact.
What’s the difference between outputs and outcomes?
No, although even funders have been known to interchange the two! Below, we’ll clarify the differences, and provide some fictionalized examples of each type.
What are Outputs?
Outputs measure the deliverables or actions produced by your organization’s program. Though typically a number, this can also be a percentage when talking about demographics, or a certain segment of the population you serve. Two or more outputs can be linked to tell a more complete narrative. Here are some examples of outputs:
We distributed over 2,000 pounds of fresh produce to local food banks, providing 1,667 meals to over 300 families in need.
100% of the youth we served last year came from low-income households.
We put on five public performances, showcasing the work of 10 Oregon artists to over 2,195 attendees (adults and youth).
Pro tip: Even when data collection isn’t always appropriate or feasible, there are ways you can get creative. For example, if you’re an arts organization that wants to lower barriers to access by providing free, open gallery spaces, requiring visitors to fill out surveys defeats the purpose. However, visitor log books can capture zip codes and estimate first time vs. repeat visitors, while counters can estimate foot traffic.
What are Outcomes?
Outcomes measure change or a transformation, and are typically represented as a percentage. Here are some examples:
After an average of 60 days in shelter, 76% of individuals exited to permanent housing.
Last year, 80% of the animals we rescued were adopted.
After participating in our 5-week arts summer camp, 90% of youth felt more confident to experiment without feelings of failure.
After participating in a 4-week advocacy training program, 85% of participants felt confident in their ability to advocate, compared to just 24% before the start of the program.
Pro tip: By tracking your organization’s data in a central location (this can be as simple as a spreadsheet), you can also demonstrate the value of your programs by tracking changes year-over-year. For example: “We provided field trips to over 140 K-12 students from Title I schools, a 23% increase year-over-year.”
Year-over-year metrics are especially helpful for programs where it’s not possible to track changes to a single participant or groups of participants over time. Increasing community demand becomes a proxy for the value of your program, and your ability to meet that increased need communicates the sustainability of your program—and by extension, your organization.
How do I know I’m collecting the right data?
Whether you’re building a pilot program or are taking a fresh look at an ongoing program, here are some guiding questions to consider with your program staff:
What long-term impact(s) do we want this program to have?
What short-term impact(s) do we want this program to have?
To achieve these impacts, what outcomes (changes) do we need to measure?
To achieve these outcomes, what outputs (activities, products) do we need to measure?
To achieve these outputs, what resources (funding, staff, etc.) do we need? What do we already have? Where can we collaborate?
By working backwards from the long- and short-term impacts you want to achieve, you can hone in on the metrics and resources you need. For a more structured tool, consider using a logic table.
How do testimonials strengthen your impact data?
With all the focus on data, numbers, and metrics, it’s easy for the human stories behind those numbers to become obscured. And with funders being more overwhelmed than ever— grounding those numbers in real stories of transformation will help your organization to stand out among the noise.
This is where testimonials come in.
Like your organization’s data, testimonials — whether they’re gathered formally through surveys, logs, or direct requests, or informally through your staff’s daily interactions — should be kept in a centralized place and refreshed on a regular basis. This helps not just your grant writing team be able to pick out the most relevant, they can also be strategically shared as part of your end-of-year fundraising communication strategy, or with major donors.
These stories help to bring your mission and goals to life. And, most importantly, bring in the person reading your application.
Next steps for grant readiness
Data is critical for communicating the impact your organization is actually having on the communities you serve. If your organization is only communicating outputs, take the time to reevaluate the data you collect and decide on one to three outcomes you could measure. Telling an accurate and compelling story to funders, like relationship building, will increase your organization’s odds of standing out among the noise.
If you need a partner to help you assess where your organization is and how a grants strategy can help you achieve it, schedule a free consultation.