Principles of Good Impact

Principles of Good Impact Reporting
For charities and social enterprises
Introduction
Charities and social enterprises that hope to engage, inform and inspire their stakeholders try to communicate clearly the impact of their work. From local groups run by volunteers to national charities employing thousands of staff, all social organisations should tell their stakeholders how they are fulfilling their purpose and achieving the change that they seek. Good impact reporting helps beneficiaries, volunteers, donors, funders and other supporters understand and engage with an organisation. It also helps staff and trustees focus on results and work to achieve their vision. An organisation that is able to establish and explain its impact will have a strong foundation both for communicating its work, and also managing it to achieve the greatest possible impact.
This document sets out Principles of Good Impact Reporting, to help charities and social enterprises tell their own story about impact. administration costs or chief executives salaries, and towards what really matters: the difference they make in peoples lives. structure for communications. Funders may wish to use the principles within their application or reporting processes to structure the questions they ask about impact. The principles have been written to minimise the use of jargon, and explain technical terms when they are used in the attached Glossary. Ultimately, the Principles of Good Impact Reporting aim to help you to tell your story bettermore clearly, more openly, in a way that helps you to focus on whats most important, and helps you to achieve even more for those youre trying to help.
The principles can be used for whole organisations, but The principles cover two also may be applied on a themes: project or multiple-project how organisations should basis to explore how they communicate their impact; work at that level. and The principles are not what organisations should intended to be a compliance communicate. tool or a checklist. Rather, they can help guide an By using these principles to organisations exploration of demonstrate their impact, its own impact, and help charities and social shape its communications. enterprises can have a Charities and social strong influence on how enterprises may wish to they are perceived. They review their existing can help to shift the reporting against the prevailing focus away from principles to identify areas concerns about to strengthen or to create a
Applying the principles

The Principles of Good Impact Reporting aim to guide charities and social enterprises through communicating their impact, including: annual reports, annual reviews and impact reports; management information, board reports and organisational reviews; reports to funders, supporters, investors and commissioners; internal communications with staff and volunteers communications materials, such as websites, brochures and leaflets; fundraising materials; key messages about the organisation; and communications with, and feedback and responses from, its beneficiaries. If applied appropriately, the principles can help you to: be accountable to your stakeholders, engaging them in open and honest dialogue; engage and inspire supporters and potential supporters; review your activities and impact against your vision and purpose; challenge your assumptions and revise strategies and plans; motivate and involve staff and volunteers; and ensure that you are helping your beneficiaries in the best way possible.
How should charities, social enterprises and community organisations communicate their impact?
There are six general principles that define how organisations should communicate their impact:
Clarity: The reader can quickly and easily understand the organisation through a coherent narrative that connects charitable aims, plans, activities and results.
Accessibility: Relevant information can be found by anyone who looks for it, in a range of formats suitable for different stakeholders. Transparency: Reporting is full, open and honest.
Verifiability: Claims about impact are backed up appropriately, allowing others to review. This can range from informal stakeholder feedback to external audit. Proportionality: The level and detail of reporting reflects the size and complexity of the organisation, and the complexity of the changes theyre trying to bring about.
3 4
Accountability: Reporting connects with stakeholders, partners and beneficiaries to tell them what they need to know, and provide reassurance.
What should charities, social enterprises and community organisations communicate about impact?
There are six specific principles that define what organisations should communicate about their impact:
Clear purpose
Defined aims
Coherent activities
Demonstrated results
Evidence
Lessons learned
Why do we exist? What issue are we ultimately trying to tackle? What overall impact do we want to have? What change do we seek? What impact do our key stakeholders want us to have?
What are our specific short and long-term aims? How does achieving these aims help us achieve our overall purpose/impact?
What activities do we carry What outcomes/impact are How do we know what we out to achieve our aims? we achieving against our are achieving? aims? What resources do we use Do we have relevant, to make these activities What impact are we proportionate evidence of happen? achieving against the our outcomes and impact? overall change we seek? What are the outputs of Are we sharing evidence to these activities? back up the claims we make? How do our activities help us achieve our aims and Are we seeking feedback, create change? review and input where appropriate? Are our activities part of a coherent plan?
What are we learning about our work? How are we communicating what we learn? How are we improving and changing from what we learn? What has happened that we didnt expect (positive and negative)? Are we allocating resources to best effect?
Glossary
(see jargonbuster.org.uk for further more comprehensive definitions) Impact Aim the overall difference you the difference you want make to those youre to make to those youre trying to help trying to help the long-term, big picture, can be short-term and/or general change you make long-term Outcome the difference an activity makes to those youre trying to help the short-term, specific change you make Resources whats required to do the work, also known as inputs can include financial costs, in kind donations, volunteer time
Produced by ACEVO Charity Finance Group Institute of Fundraising NCVO New Philanthropy Capital Small Charities Coalition Social Enterprise UK SROI Network March 2012

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Principles of Good Impact Reporting

For charities and social enterprises

Applying the principles

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