Small charities “failing to measure the impact of their services”
Howard Lake | 9 November 2017 | News
Many small charities still fail to record and communicate the impact of their services, according to research by the Foundation for Social Improvement (FSI).
Its latest Small Charity Index reports that only 52% of small charities whose staff responded said that they consistently measure the impact of nearly all of their services.
However, the need to convey impact and demonstrate value is arguably as high as ever. Certainly, many small charities continue to experience rising demand for their services (up 112% since June 2013 according to the FSI) despite their income stagnating.
SEE ALSO: FSI awarded £199,580 to finance new small charity training programme (11 April 2017)
The report covered the quarter from June to August 2017.
The data gathering and analysis of trends is carried out by the FSI through its membership of over 5,600 distinct small charities, each with an annual turnover of under £1.5 million.
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Benefits of measuring impact
Small charities know the benefit of being able to measure and show impact. The respondents to the survey gave at least three reasons:
- to know the difference their services are making to beneficiaries (25% of respondents)
- meeting funders’ requirements (24%)
- being able to improve their services (23%)
However, this awareness is not being put into practice. The FSI’s Small Charity Index reports that:
- 24% of respondents only measured the impact of half of their services
- 19% measured only a small proportion
- 5% don’t measure impact of their services at all.
Pauline Broomhead, CEO of the FSI said: “The Small Charity Index Trends data has shown income to small charities has only seen a 1% growth in four years, so now is a time for small charities to take control of the things we can influence.
“By measuring and demonstrating our impact, small charities will be able to prove to funders and donors the difference they are making, helping to increase the share of funding available that they currently receive.”
The FSI supports small charities across the UK by offering heavily subsidised and free training and webinars on impact measurement, fundraising and other topics.
For example, it has received funding as part of the Department for Digital, Culture, Media & Sport’s (DCMS) Small Charity Training Programme to run training events across the country. The programme is open to small charities and community groups with an annual income of up to £1 million, which have a local focus within England.
Trends in small charities
The Small Charity Index has been published for four years. Trends that it has detected between June 2013 and May 2017 include:
- Total increase for demand for services was 103%
- Voluntary income increased by 1%
- Statutory income decreased by 11%
- Earned income increased by 11%
- Use of reserves increased by 63%
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About Howard Lake
Howard Lake is consultant editor of UK Fundraising. He founded the site in 1994 and successfully sold it in 2022. As director of Giving X Ltd he is exploring growing giving on a massive scale.
He is the founder of Fundraising Camp and co-founder of GoodJobs.