Impact data demystified
In recent years, you’ve likely heard the term “impact data” thrown around in the nonprofit space. It’s a buzzword that promises to transform how organisations measure success, attract funding, and tell powerful stories. But if you're unsure what it actually means or how to get started, you’re not alone.
In this post, we’ll break down what impact data is, why it matters, and how your organisation can begin collecting and using it to create meaningful change.
What is Impact Data?
At its core, impact data is the information that shows how your organisation’s efforts are making a difference. It goes beyond basic outputs—like how many meals were served or how many workshops were held—and delves into the actual outcomes and changes your services have on individuals, communities, or even systems.
For example:
Outputs: 500 children attended after-school programs.
Impact: Of those 500 children, 85% showed improvement in academic performance, and 90% reported feeling more confident.
Impact data tells the story of the difference your work is making, not just what you’re doing.
Why Is Impact Data Important?
Evidence for Funders: More than ever, funders want to see the tangible results of their investment. Good impact data shows them your work is driving real change, helping to secure continued or increased funding.
Internal Improvements: Impact data helps your organisation understand what’s working and what’s not, so you can make informed decisions and improve your programs.
Communicating Your Value: Whether you’re speaking to donors, stakeholders, or the community, impact data gives you a compelling way to communicate your achievements. It shifts the conversation from “how much you did” to “how much you achieved.”
How to Start Collecting Impact Data
If your organisation hasn’t started collecting impact data yet, or you’re unsure where to begin, don’t worry. Here are some steps to help you get started:
Identify Key Outcomes Start by asking: what change do you want to see as a result of your work? This could be increased well-being, improved skills, reduced homelessness—whatever aligns with your mission. The clearer you are about your desired outcomes, the easier it will be to measure them.
Select Indicators Once you’ve identified your outcomes, choose specific indicators that will help you measure progress. For instance, if you want to measure increased well-being, you might track self-reported happiness scores or reduced hospital visits among your clients.
Use Existing Data Sources You don’t have to start from scratch. Look at what data you’re already collecting and see if it can be repurposed. Surveys, interviews, attendance records, or even government data can provide useful insights into your impact.
Build Simple Data Collection Tools You don’t need fancy technology to get started. A simple survey or feedback form can be enough to gather the right data. The key is consistency—collect the same data across your programs to build a reliable picture of your impact.
Start Small and Scale Collecting impact data doesn’t have to be an overwhelming task. Start with one or two key programs or outcomes, and gradually build your capacity from there.
Common Challenges and How to Overcome Them
Time and Resources: Many nonprofits feel they don’t have the time or resources to collect impact data. Start small with simple tools and focus on just a few key metrics that matter most to your mission.
Defining Impact: It can be tricky to define what impact looks like for your organisation. Work with your team, stakeholders, and even clients to get clear on what change you’re trying to create.
Survey response rates: Getting people to engage with surveys can be tough, but more responses will lead to better insights. To improve survey response rates, consider sending timely reminders, offering small incentives, or making it clear how their feedback will directly contribute to improving the service.
Data Quality: Poor-quality data can lead to misleading conclusions. Make sure you have systems in place to collect data consistently, at the same time in the same way, and always cross-check for accuracy.
Final Thoughts
Impact data can seem intimidating, but at its heart, it’s about understanding and improving the difference your organisation is making in the world. Start small, be clear about what success looks like for you, and remember—it’s a journey, not a destination.
The more you invest in understanding your impact, the better equipped you’ll be to drive lasting change.