How to show impact in the cost-of-living crisis
6-minute read
A challenging environment
Over the past few years, the UK has faced substantial economic headwinds. The impact of COVID-19, Brexit, the Russia-Ukraine war and the resultant increase in prices of consumer goods and inflation in energy prices has impacted the charitable sector significantly yet made their presence all the more essential. There has been a decrease in donations and an increase in demand, which has resulted in many organisations being significantly squeezed, with many having to close their doors completely. In 2022, some 4,000 charities were forecast to be removed from the Charity Commission’s register. Although the number of charities closing has been falling since 2020, a significant reversal in trajectory is expected in the first few months of 2023. This is due to the double blow of a persistent reduction in donations and significantly increased costs compared to this time last year.
Research shows that more than 9 out of every 10 charities in the UK experienced some negative impact from COVID-19, resulting in frustration and uncertainty, with 6 in 10 seeing a loss of income. Nearly every charitable organisation asked in the research has said that they are worried about the effect of cost-of-living increases will have on those that depend on their services. Over one-third believe that their organisation will struggle to survive altogether. At the front-line, the experience of austerity policies unquestionably leads to insecurity, precarity and changes in how support is delivered.
Source: Charity Excellence
Amongst this uncertainty, how do organisations continue to create and show their impact?
Organisations have displayed amazing resilience, flexibility and adaptability as responses to restricted budgets and future economic uncertainty. Many have adopted creative and innovative approaches to evidencing impact and furthering their mission. Research has shown that alongside organisational adaptation, the pandemic has emboldened funders and non-profits to rethink traditional models and implement changes that have enormous potential to strengthen the charitable sector and to create sustainable cultural shifts.
Changes, now and in the future
There is still a great deal of debate around how organisations can best evidence their impact, whilst also acknowledging wider socio-economic challenges. Standard approaches to evaluation may not always capture the meaningful impact happening on the ground. Whilst many organisations are constrained by how funders determine success (KPI’s, imposed outcome indicators etc.), this should not be seen as a hard limitation. Organisations can, and should, also identify and include the impact that they have identified and know is valuable on the ground in their reporting. Defining impact remains challenging for many organisations. Nevertheless, it provides the opportunity for organisations to be reflective, contemplating what people need from their services and why, ensuring alignment with the organisation’s mission.
Using innovation to meet needs
The influence of the pandemic has stimulated innovations based on empathy, and organisations are applying concepts such as design and systems thinking to problem solve more widely. There can be a hidden opportunity to rethink how a programme works, or to catalyse a conversation with a funder as to what is really needed. That is not to ignore that unfortunately great programmes don’t always survive, but some of the best innovations and supports have been developed out of a need to think differently to survive.
Understanding what people need from services and addressing ‘real-world’ issues can shape how organisations design works programmes, but also help organisations to consider how best to measure impact. This might be through new metrics and outputs, or finding different ways of collecting impact data such as video case studies and blogs or narratives that focus on lived experiences.
Less is more
Organisations can generate greater social impact by offering a smaller set of services when funding is squeezed. Understanding the need of clients or service users can help organisations be more intentional in setting out their vision, mission and offers. In so doing, impact can be more significant and focused assessments with clearer outcomes can be made. This also allows organisations to home in on what they know works, evidencing and articulating the contributions they are making to challenging social issues.
Collaborate for change
It takes time, expertise and resources to develop the right impact measurements. By co-developing programmes, and outcome measures, service users and people with lived experience can lead organisations to better capture impact–however big or small. The effectiveness of collaboration at the community level has been spotlighted by the pandemic. As we move forward, this could be modelled for impact and to strengthen and share in times of limited resources.
Use technology
The last few years has seen a dramatic rise in the use of technology, primarily by using online communication platforms in organisations. Research has shown that nearly half of charities asked say their staff and/or volunteers have learnt to make better use of digital technology since 2021. A significant minority (18%), say communication between trustees has improved since the beginning of the pandemic. Using digital technology to facilitate collaborative working, or solve social problems is gaining real momentum. The embedding of digital technology in organisations could well provide cost effective, rapid and tailored approaches to mapping and measuring social impact.
“With creativity and perseverance, non-profit organisations can measure their success in achieving their mission—by defining the mission to make it quantifiable, by investing in research to show that specific methods work, or by developing concrete microlevel goals that imply success on a larger scale.”
Next steps
The cost-of-living crisis is a challenging environment in which to operate. Unfortunately, it appears as if it is going to remain for some time.
However, there are actions to take that make the best out of this difficult period. Namely:
Innovate – applying concepts such as design and systems thinking to better meet the challenges of your clients’/service users’ needs.
Condense – focusing on just a few, yet key areas/services, enables more of your tight resources to boost your impact.
Collaborate – a pooling of resources in a joint programme could lead to you and a partner organisation achieving far more than continuing exclusively.
Digitise – implementing remote support and using digital technologies to do so can expand your reach and make you more effective with your available resources.
At Habitus, we have developed and designed successful community programmes for various charities, health organisations and businesses both in the UK and internationally.
We are accomplished in peer research, co-production, action-based and anti-oppressive research and evaluation. We are experts in helping organisations to engage wider community participation in their projects so that their work is more inclusive and impactful. Through this approach we are dedicated to increasing lived experience leadership.
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