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Impact InvestingIntegrating your organization in a philanthropic portfolio
DFW Philanthropy in Action Conference
Heather Himes
The Innovation House
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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
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DFW Philanthropy in Action Conference
Resources
• Stanford Social Innovation Review
• ImpactBase
• Global Impact Investing Network
• Acumen
• Root Capital
• McKnight Foundation
• McArthur Foundation
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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?
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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
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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)
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DFW Philanthropy in Action Conference
Financial Returns - EXAMPLE
1.5 Billion People Lack Electricity Globally…
• Mpowerd
• d.light
• General Electric
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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
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DFW Philanthropy in Action Conference
Social Returns
• Mission Alignment Method
– Current vs. Historical with monitoring
– Operational performance
– Effectiveness
• Financials
• Organizational Structure
• Service Delivery
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DFW Philanthropy in Action Conference
What does this measure?
What does this not measure?
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DFW Philanthropy in Action Conference
What does this measure?
• Directionality
• Intentionality
• Change over time
• Risk
• Responsiveness to community needs
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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
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DFW Philanthropy in Action Conference
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DFW Philanthropy in Action Conference
Level Playing Field
• Dosage/Duration of Impact programs
• Breadth of services
• Organizational Efficiency
• % of Budget on Charitable Purposes
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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
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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%
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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
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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
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DFW Philanthropy in Action Conference
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DFW Philanthropy in Action Conference
Practical Application of Impact
Investments in Fundraising
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DFW Philanthropy in Action Conference
What is the Future of
Fundraising?
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DFW Philanthropy in Action Conference
Questions and Discussion
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DFW Philanthropy in Action Conference
Heather Himes
Grants Manager
Girls Inc. of Tarrant County
817-259-1050