play icon for videos
Shift in Storytelling | July 30th, 2024 9:00 AM PDT | Register Now

How to measure impact of a program

Discover how to measure impact of a project through effective data strategy in measuring social impact.
Best Practices
Written by
Unmesh Sheth
Published on
July 6, 2023

Measure the impact of a project through effective data strategy in measuring social impact. Learn effective measurement methodologies.

Data has emerged as a powerful tool for driving social impact and fostering meaningful change in today's fast-paced world. Measuring outcomes, maximizing the impact of portfolios, and promoting financial inclusion relies on an effective data strategy. This article delves into the importance of data strategy, IRIS impact measurement, lean data management, and the transformative potential of data-driven practices.

It is All About Stakeholders

A robust data strategy is a bedrock for impactful social initiatives, enabling organizations to align efforts, measure progress, and optimize operations. Why? By leveraging data, organizations gain valuable insights into their programs, identifying areas of improvement and making data-driven decisions that lead to better outcomes and saving resources.

An effective data strategy involves a lean logic model, data collection, integration, and reporting/insight. Each stage plays a role in ensuring the success of the data strategy, empowering organizations to make informed choices and drive maximum social impact.

Social impact centers around stakeholders. It does not matter if the organization type is a nonprofit, social enterprise, funder, or accelerator. That is why a  good data strategy considers the specific needs of these stakeholders, whether it's collecting impact data, aligning metrics with best practices, or addressing unique challenges each group faces.

Only Collect and Learn from Relevant Data 

The key step in a continuous learning loop starts with data source mapping. It helps organizations collect and organize relevant information for various purposes. 

1. Stakeholder feedback: This data often comes from surveys and allows organizations to systematically collect and analyze customer reviews and identify patterns to make targeted improvements in future programs. 

2. Operational needs: Information such as market research, customer demographics, and competitor analysis enable strategic decision-making for operational conditions and program resource planning. It often comes from CRM, applications, research tools, etc. 

If mapped properly, stakeholder and operations data help organizations collect and organize information related to stakeholder preferences, engagement levels, program timelines, and performance metrics. 

The data mapping involves:

  • Defining learning goals.
  • Identifying information sources.
  • Collecting targeted data.

Many businesses today rely on data to make informed decisions and achieve their objectives. An impact data strategy involves collecting and analyzing data to identify targets, streamline operations, and improve efficiency. By implementing such a strategy, businesses can stay competitive in a fast-paced, data-driven world.

Data Strategy Loop
Fig:Data Strategy Loop

Data strategy for nonprofits

An impact data strategy is a structured approach to data collection. 

Start with the organization's goals and objectives. Before collecting data, it is important to ask which organizational goal is key to focus the efforts.

To define a social impact goal, use the following format: 

Fig: Social Impact statement

For instance, children from low-income families (target audience) in rural communities lack access to quality education due to limited infrastructure and resources (cause). This results in a significant learning gap and hinders their academic and personal growth (impact), necessitating an innovative and sustainable education intervention (solution).

Another Example

Fig: Effective Social Impact Statement

Next, define relevant metrics to ensure it will tell us that the organization is meeting its goals. Metrics should be specific, measurable, relevant, achievable, and time-bound. Our goal is to gather data from stakeholders and program operations, analyze metrics, and use these insights to improve the effectiveness of our programs/activities.

The data collection should be structured, standardized, and clean, ensuring data quality. Identifying data sources for each metric is crucial, whether it already exists or needs to be collected from platforms like Salesforce, Excel, Google Sheets, or surveys. Identify calculations and formulas as data points for each metric to make the process easy to understand.

Data Strategy
Fig: Data Strategy

Impact Data Challenges And Solutions:

Aligning Organizational and Program Goals.

Nonprofits often need help in aligning their organizational goals with program goals. Ensuring that all activities move in the same direction can be difficult with multiple programs and initiatives. Additionally, identifying relevant metrics that are measurable, relevant, and realistic can be a complex task. Nonprofits must define indicators that accurately reflect their progress and impact while considering data collection and analysis feasibility.

Sopact can provide a structured planning framework that facilitates goal alignment and guides nonprofits in identifying appropriate metrics. The platform offers customizable templates and tools to define and track goals, ensuring that data collection efforts are focused and aligned with the organization's mission.

Disparate Stakeholder & Operations Data.

Nonprofits often struggle with disparate data sources that do not communicate with each other. They may have data stored in different systems, such as spreadsheets, databases, or online platforms, making it challenging to integrate and analyze data comprehensively. Poor data practices, including inconsistent data formatting, lack of structure, and cleanliness, further complicate data management efforts.

Disparate Data sources
Fig: Challenges

Advanced data platforms like Sopact's Impact Cloud address these challenges by providing a centralized data storage and integration repository. It allows nonprofits to connect various data sources, standardize data formats, and clean and validate data through automated processes. By establishing data governance protocols and offering data cleansing features, Sopact ensures nonprofits have reliable, standardized data to drive their decision-making processes.

Data Analysis Skills:

The technical infrastructure set-up often required advanced data analytics skills that resource-crunched nonprofits need to gain. Integrating data from multiple sources can be daunting, especially without the right tools and expertise. Additionally, transforming, cleaning, calculating, and aggregating data to derive meaningful insights require skilled data pundits. 

It operationalizes carefully mapped data strategy with platforms like Sopact's Impact Cloud. It offers a user-friendly interface and built-in analytics capabilities that require minimal technical knowledge. Nonprofits can easily connect and integrate data sources, perform transformations and calculations, and generate visualizations and reports without relying heavily on technical resources. 

Sopact resources and support build the capacity to enhance nonprofits' data analysis skills, enabling them to uncover valuable insights and make informed decisions.

Manual vs. Auto Analytics

Nonprofits often need help updating their dashboards manually, leading to inefficiencies and potential errors. With limited time and resources, constantly updating dashboards becomes a burdensome task. 

Privacy and security concerns surrounding sensitive data add an extra layer of complexity. Additionally, traditional dashboards may provide limited insight and learning capabilities, restricting nonprofits' ability to gain deeper insights from their data.

Sopact's Impact Cloud platform addresses these challenges by offering automated data feeds and real-time updates to dashboards. Nonprofits can integrate their data sources with the platform, allowing seamless and automated updates. 

The platform also prioritizes data security, implementing stringent measures to protect sensitive information. Advanced visualization features enable nonprofits to gain comprehensive insights from their data, fostering a culture of learning and continuous improvement.

Behind an impact dashboard
Fig: Behind an Impact Dashboard

To overcome the challenges mentioned above, organizations need to invest in hiring skilled professionals, providing training on data collection, developing infrastructure and apps, integrating APIs, and maintaining technical infrastructure. Hiring data scientists, software engineers, and solutions architects can greatly contribute to data management and analysis. Engaging an impact consultant or officer can provide strategic guidance. Allocating resources to IT and recruiting personnel ensures proper support for technical infrastructure. Building a skilled team and providing training enhance staff capabilities. Allocating time and resources for data-related activities and investing in software licenses, databases, hosting services, and training materials are crucial. These efforts require significant financial investment, time, and resources to overcome the challenges and optimize data management and analysis effectively.


Data Analytics
Fig: An All-in-One Solution


Data strategy plays a pivotal role in maximizing social impact. By designing an effective strategy, organizations unlock the potential of their data, make informed decisions, and drive positive change. Overcoming challenges in data collection, leveraging impact dashboards, and implementing a comprehensive data strategy are key steps toward achieving maximum social impact. Embracing data-driven practices and fostering a culture of continuous improvement will pave the way for measuring, optimizing, and scaling social impact effectively.

Sopact's Impact Cloud platform provides comprehensive solutions to the challenges faced by nonprofits in planning, managing stakeholder and program operations data, conducting data analysis, and utilizing dashboards effectively. By offering streamlined processes, data integration capabilities, data cleansing features, and user-friendly analytics tools, Sopact empowers nonprofits to optimize their data management practices, make data-driven decisions, and maximize their impact in their communities.

Learn More: Impact Measurement

AI for Social Impact

Current state of AI for Social Impact Measurement
email newsletter image

Get useful, spam-free insight direct to your inbox every month.

Spam-free and secure!
Thank you! Your submission has been received!
Something went wrong while submitting the form.
Please try again.