How do you measure and communicate your social value to funders and stakeholders?

To measure and communicate your social value to funders and stakeholders, start by defining what truly matters. our social value isn’t just numbers; it’s the impact you make. Track your progress through tangible results—think real-world outcomes, not just vanity metrics. Share stories that highlight your achievements and the lives you’ve touched. Show how your work aligns with broader goals and values that resonate with your audience. When you communicate this, focus on the narrative of transformation, not just data points. Make it personal, make it compelling, and make it clear why your impact matters.

The success of a business will have a positive social impact. This may come in the form of offering a product or service that addresses a social need, it may be in the form of creating new jobs, it may be the payment of taxes that pay for fire and police protection, it may be in stirring the local economy by purchasing products and services locally. These are normal outcomes before getting into addressing social causes, volunteering or other good acts. People who benefit from your success are stakeholders. Consider every dollar you spend and who receives it or benefits from it. This defines your business beyond the profits that you earn.

From my experience, to measure and communicate social value, focus on impactful metrics, track key outcomes, and share success stories alongside challenges. Be transparent and align your achievements with funders' interests to clearly demonstrate value.

What can be measured may be managed. In looking at how your business creates impact, consider how that impact can be measured. Measurements may be easy (creating a new job) or more difficult (raising the average median income for the community). Look to see how other people, charities, social causes, and governments measure problems and solutions. Some benefits will be subjective, hard to define, and harder to measure (less stress, more happiness). Pick those that are most important to you, your customers, and your community. Create a system to capture and calculate the extent of your impact.

I think of social value as the story behind the numbers. It's not just about data; it's about impact. Start by collecting metrics that matter—things like lives changed, communities uplifted, or barriers broken. But don’t stop there. Tie those numbers to real-world stories that resonate emotionally with your funders and stakeholders. Show them how their investment isn’t just a financial transaction; it’s a catalyst for positive change. When you communicate, blend the data with the human element. Because at the end of the day, people invest in outcomes that align with their values, not just in numbers on a spreadsheet.

Create your own social impact scorecard. This is a report that shows how things have changed directly or indirectly from the success of your business. Some information is simple to measure, some may require third-party observation, some may require expertise, and some may be naturally collected by others (charities, social organizations, and government agencies). Select those for your scorecard that best tell your story.

Dynamic Social Impact Evaluation. First, you need to establish your vision by defining your SOCIAL PURPOSE. Then a Social Impact strategy to steer and unite all your activities. Many companies have different departments doing different things under social impact. Finally evaluation - you need to adopt two aspects - the numeric, and the human aspect (this cannot be done in numbers but narrative reporting). Also, consider the 'Ripple Effect' - the long term impact. www.MySocialImpact.com

𝐒̲𝐡̲𝐨̲𝐰̲𝐜̲𝐚̲𝐬̲𝐞̲ ̲𝐭̲𝐡̲𝐞̲ ̲𝐡̲𝐮̲𝐦̲𝐚̲𝐧̲ ̲𝐢̲𝐦̲𝐩̲𝐚̲𝐜̲𝐭̲ of your work to connect with funders and stakeholders on an emotional level. • Align Metrics with Goals: Clearly define your social value aims (e.g., higher educational attainment) and choose precise metrics to track progress toward these goals. • Outcomes Over Outputs: Don't just tally workshops. Measure the increase in knowledge, skills, or behavior changes among participants. • Highlight Beneficiary Voices: Amplify quotes, testimonials, or case studies that depict personal transformations enabled by you. By weaving data into compelling narratives, you'll transform impact reports into powerful communication tools that resonate deeply.