Six Ways to Amplify Your Foundation’s ImpactMarkdale
To improve impact, it’s crucial that all charitable foundations continuously refine their approaches to increase their efficiency. Here, are six strategies to help your foundation amplify its impact:
1. Measure: Choose Metrics and Collect Data
Just as businesses gauge their success through Key Performance Indicators (KPIs), charitable foundations should select relevant metrics that capture their accomplishments. Maybe its the number of beneficiaries served, the quantum of funds disbursed, or the measurable change effected. Foundations must actively collect and track data on metrics that matter most to their definition of success. Doing so lays the groundwork for assessing the foundation’s true impact. Measuring impact also prevents things like “greenwashing” and promotes accountability.
2. Report: Chronicle Your Journey
Transparency in philanthropy builds trust & accountability. Consistent reporting enables foundations to compare progress over time, helping to identify areas of success and those requiring more attention. Moreover, by sharing these reports on platforms such as the foundation’s website, social media, and mailing lists, it not only keeps stakeholders informed but also inspires potential donors to contribute and other partners to support their cause. For family foundations, consistent reporting promotes harmony & inspires the next generation to support the family values.
3. Evaluate: Make Informed Decisions
With structured reporting in place, foundations are better equipped to evaluate their approaches. Comparing their impact to alternatives or previous strategies allows for an assessment of what’s working and what isn’t. Consequently, informed decisions can be made based on sound measurement & reporting. This ensures that resources are allocated to the most effective initiatives.
4. Compare Alternative Structures: Ensure Efficiency
The operational efficiency of a foundation often influences its overall impact. Periodically comparing the foundation’s administrative costs to alternatives, such as using donor-advised funds, is crucial. Moreover, regular reviews should be conducted to determine if certain functions performed internally could be outsourced more efficiently, or vice-versa.
5. Share Resources: Strengthen the Ecosystem
A single foundation, no matter how resource-rich, cannot address all challenges effectively by themselves. Partnering with like-minded investors/philanthropists and sharing resources with other grantors can significantly enhance the combined impact. This collaborative approach might pool financial resources to achieve greater economies of scale. But, could also include sharing knowledge and expertise. Doing so ensures that efforts are not duplicated, and the broader objectives are achieved more efficiently.
6. Raise More!: Collaborative Fundraising
Pooling resources isn’t restricted to sharing knowledge or expertise. Foundations can also join hands with other philanthropists, governmental bodies, or businesses that share similar goals. Such collaborative fundraising can lead to more substantial impacts. Especially when charitable purposes are broad and societal, such as climate change.
Our Family Office Can Help
If any of the strategies to increasing impact seem interesting to you. Please, get touch with us as our family office would like to help. We understand that each foundation is different. So, we can suggest and implement processes that will improve results for your foundation and its various stakeholders. Contact Us to receive a complementary review and receive our specific actionable recommendations.