What is impact?
With over two-thirds of Australians saying they would give more to charity if they knew more about the results and impact that a charity has[i], next, can the charity clearly show its progress to achieve its purpose?
In amongst the inspiring stories and smiling recipients, pie charts and infographics, the annual reports of charities look impressive but rarely outline the outcomes or impact that demonstrate the longitudinal progress they are making towards achieving their purpose (or their purpose at all).
The most generally accepted methodology for connecting processes to purpose and to be able to articulate and measure each stage is a theory of change or program logic, which can be carried out on an organisational, program or project level.
In this model:
· Inputs are the resources needed for the activities to occur, including people, money, assets, say the trainers, room hire, and course materials for a charity that educates children and young people who have dropped out of school
· Activities are the specific interventions that will take place, for instance, the number of classes by subject
· Outputs are the results of the activities, such as the number of participants trained
· Outcomes can be divided into short, medium and long term. They represent the result of the outputs and their effect, such as the measured educational attainment or skills acquired, as well as, getting into work or tertiary education. Then there is the evidence gathered to demonstrate to governments a change in education policy, system and resources that would prevent the cohort from dropping out of school or intervene earlier to get them back to school
· Impact is the holy grail as the closest measure to fulfilling the charity’s purpose as the social or environmental change envisioned, such as the financial and wellbeing benefits of the trainees, their families and communities, together with a change in the mainstream education system to intervene in non-attendance early, for instance, a policy that places the responsibility of truancy with the school
This model needs to be developed from right to left, starting with the impact desired to further or achieve the charity’s belief and purpose, respectively. In this example, the charity’s belief in the right to education for all can only be achieved in the long term by an inclusive, skilled and resourced government education system (impact). The short-term ‘band-aid’ teaching intervention by the charity (outputs) must be accompanied by evidence of the longer-term economic and social benefits of the outcomes it achieves, alongside the government policy, service system and resource changes needed.
Two excellent free Starting Guides from UK’s National Philanthropy Centre - Theory of Change in Ten Steps[ii] and Understanding Impact[iii].
[i] Charities Aid Foundation & Workplace Giving Australia (2025) Giving in Australia 2025, p.19
[ii] https://www.thinknpc.org/resource-hub/ten-steps/
[iii] https://www.thinknpc.org/resource-hub/understanding-impact/
