Measuring impact is undeniably vital to draw investment.

With the rapid growth of results-based financing, impact measurement and management (IMM) among funders is emphasized more than ever.

According to a study by The Social Investment Consultancy,

88% of funders agree that impact measurement makes charities more effective.  

IMM includes identifying the effects one’s investment approaches have on people and the planet, and further understanding ways to mitigate the negative and maximize the positive in alignment with the organizations’ goals.


Nonetheless, there are still several common pitfalls in terms of measuring impact, ranging from:

  • Not being data-driven; It takes excellent leadership and commitment to consistently bring data to life. Data is the fuel of improvement, thus should always be included in monitoring, evaluation, and learning (MEL) of a good impact measurement.
  • Giving up too quickly; Some organizations are eager to start big but easily lose resilience. Either overwhelmed by data or easily backed down when the impact measured does not bear the desired investment.
  • One size fits all approaches; Funders could not expect to use a common approach in measuring impact as context varies. However, a flexible approach could also make it difficult to draw conclusions on a portfolio level to inform grants strategies.

The list goes on and it all comes down to the Non Governmental Organization (NGO) or Social Enterprise (SE)  struggling to measure the impact of their programs. The big question remains: How do funders overcome these pitfalls? To that end, here are a glimpse of tips in measuring and managing impact:

  • Stay focused on measuring what really matters;  It’s better to start small but clear on the core questions and the core metrics, therefore minimizing the chances of being overwhelmed by data. It would be wise to apply various methods like Theory of Change, Mission Alignment, etc, tailored by the context.
  • Embrace the complex social change which is not always positive; Funders need to learn to be okay with bad news from grantees and being open with the flaws at some parts that come out of impact measurement. To conclude, give space for failure and small wins.

At the end of the day, there will be many pitfalls as you learn to overcome them along the journey. A journey that requires a broad mix of skills from influencing others and data literacy, to analysis and reporting. Bearing all this in mind, G-incubation is designed to help their incubatees to implement impact measurement and management effectively and accurately in order to achieve the desired impact.



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