Australia's social impact sector is evolving at a rapid pace, with businesses increasingly looking to harness their purchasing power for societal good. Social enterprises are moving into the mainstream, philanthropy is trending, and there's a strong call for more transparency and accountability within the not-for-profit sector.
The Role of Intermediaries
Intermediaries are key organisations that provide vital support to entities aiming to boost their social impact. They offer critical services such as skill and knowledge transfer, marketing channels, and access to networks and finance, thus enhancing the social impact ecosystem. These intermediaries range from educational institutions and foundations to corporates and consultancies.
As the sector becomes more competitive, the emergence of new intermediaries is a welcome development. This competition can improve service standards and foster innovation, giving organisations more choices as they pursue their impact goals.
Attribution vs Contribution: An Ongoing Debate
With the rise of intermediaries, it's crucial to accurately assess and communicate the true impact of their work. Not-for-profits often grapple with measuring direct impact, and this challenge is even more pronounced in attributing outcomes to intermediaries, particularly advisory organisations. Simply attributing outcomes directly to intermediary efforts oversimplifies the cause-and-effect relationship and can attract criticism.
Intermediaries should adopt thorough impact assessment methods to genuinely attribute social outcomes to their efforts. However, these methods can be costly and time-consuming, leading many to opt for claiming 'contribution' rather than direct attribution.
Measuring Contribution: A Complex Task
Claiming contribution requires understanding the extent of an intermediary's influence on an outcome. This can be complex—how do you quantify an intermediary's role in reducing homelessness or improving social conditions? For example, if an intermediary facilitates a co-design session that leads to a successful new housing initiative, how do you measure their specific impact?
Exploring Innovative Evaluation Approaches
While comprehensive impact assessments may not be feasible for every intermediary, alternative evaluation methods are available. These range from qualitative approaches like interviews and focus groups to quantitative techniques such as surveys and meta-analyses. Utilising these methods can help intermediaries better communicate their value.
Advice for Intermediaries
Assigning impact to intermediaries is challenging because social change rarely results from the efforts of a single entity. Success often arises from collective action. It's essential for intermediaries to recognise the attribution gap present in both their clients' work and their own. By questioning, debating, and challenging the roles of all involved, intermediaries can contribute to more informed and impactful social outcomes.
To effectively demonstrate social impact, intermediaries should consider the following:
- What is the purpose of defining and demonstrating our impact?
- What is our theory of change?
- What impacts can we report?
- What information and data do we need?
- How much are we willing to invest in evaluation?
- How and when should evaluation fit into our projects?
As Australia's social impact sector continues to flourish, the role of intermediaries becomes increasingly significant. Accurate impact assessment remains a challenging yet essential task, requiring a careful balance between attributing outcomes and recognising contributions. By embracing innovative evaluation methods and acknowledging their collective efforts, intermediaries can enhance their influence and better serve the sector's goals. Ultimately, navigating the complexities of attribution and contribution will help drive meaningful social change.
