PROFITS AND PERFORMANCE
by Professor Filmore Buckets
Social Return on Investment. High-Performance Philanthropy. This is not your grandfather's charity, and for the most part that's a good thing.
The last decade has seen a remarkable convergence of business and social mission. A generation of "social entrepreneurs" are as interested in purpose and meaning as they are in the bottom line.
Increase in farmer income in the first year after adopting an IDE technology 2007-2008 (all figures in US$)
That sense of purpose and higher calling has always driven charities to do what they do. However, more and more charities are realizing the need to adopt a more business-like approach if they are to accomplish their social goals.
Business-minded charities recognize the need for much clearer tracking of results. Whereas transparency used to mean disclosing the amount you spend on overhead, there is an increasing focus on value for money, or return on investment: how much social good can a charity achieve with a given amount of money?
Agreeing on a common set of indicators for the social value charities create is a huge challenge. Any social change is complex and not exactly linear.
IDE has an advantage in that it is quite tightly focused on a specific measurable goal: increasing the incomes of poor rural households. IDE conducts regular surveys to track changes in household food production and cash income. Staff also monitor key indicators like technology sales and services provided on a monthly basis.
IDE is working to provide some of these data to donors in a user-friendly and clear format. In the coming months, look for an online, interactive dashboard that will allow you to track progress and results on a monthly basis, The goal is to put the information in your hands, helping you to see the real, measurable difference your investment is making.
Of course, numbers are not the whole story. As always, the Rising Tide seeks to bring you closer to the farmers themselves. They are the reason we take our performance seriously.