Evaluating Philanthropic Impact for a Large Midwest Organization: Success, Impact and Opportunity
Like many other organizations and companies involved in charitable giving - whether funds, goods or services - a large Midwest organization believed "giving" was the right thing to do. But what they learned from a philanthropic impact study conducted by TPG Philanthropy Group, Inc. is that impact is not so much about what or how much is given. Instead, impact is about the difference those gifts make and the changes they ignite.
BACKGROUND
Philanthropic programs and charitable giving weren't new to this nationally recognized agriculture organization. Supporting worthy causes and outstanding organizations had always been a part of its culture.
Suddenly, within a short time period, the organization experienced a sudden infusion of significant financial resources.
The company immediately increased its level of charitable giving. It quickly became a "go-to" organization for cash-strapped community and agriculture entities. Furthermore, every business department within the organization had its own pool of funds to "give-away."
Eventually, a centralized department was created to consolidate the oversight of the now substantial charitable giving and community involvement programs. Through concentrated efforts, the organization's charitable giving programs became more focused, more organized and prioritized. With its processes streamlined and objectives in order, the organization next wanted to know the impact its giving was having.
TPG Philanthropic Group, Inc. was brought in to conduct a philanthropic impact study. Together TPG and the organization determined that there were two issues to look at in the process of mesuring impact of the philanthropic giving:
1. Did the organization meets its own stated objectives in terms of emphasis regarding its charitable giving, and,
2. Did the philanthropic programs further the company's other business objectives?
Situation
The intention of the evaluation was to provide the organization with a high-level, independent analysis of the social impacts its charitable giving programs were having, as well as provide recommendations for future enhancements. The study focused on the charitable giving aspects of the organization's overall philanthropic and community investment and volunteer activities. An in-depth economic-study was beyond the needs of the organization.
As part of the analysis, 50 stakeholders shared their opinions with TPG regarding the impact of the organization's charitable giving by each of the business' several philanthropic programming areas; as well as views regarding the business' overall giving program. Some stakeholder individuals were interviewed; others shared their perspectives through a qualitative online questionnaire.
Findings
The study found that indeed, the organization's charitable giving programs have significant impact on individuals, organizations, local communities, the state, and beyond. Charitable giving provided the organization with a new platform from which to talk and new things to talk about with stakeholders: grantees and others are beginning to recognize the priorities and impact of the organization.
Already a leader with considerable access and leverage, the organization learned that it had substantial opportunity to further enhance its impact by fine-tuning its focus; reframing the role of its Foundation; and exploring alternative funding and fund-raising avenues that compliment its ongoing business objectives.
Outcomes
From the onset of the philanthropic impact study, the organization received accolades from its peers and grantees for inviting scrutiny of its giving priorities, methods and impact. Leadership responded by simply saying, "We needed to know."
TPG helped the organization establish a baseline of impact for its charitable giving programs. While confirming some of the organization's assumptions, the study also brought forward new approaches, options and opportunities for the organization's charitable giving which could lead to greater impact and stronger strategic achievement.
Even before the study was finalized, the organization began incorporating key findings into its strategic plans. Although too early in the overall process to understand the full consequences of the changes adopted by the business as a result of the study, TPG revealed important lessons for the organization:
- Aligning charitable giving with strategic intents of the organization leads to greater impact, while separating it leads to missed opportunities.
- Self-scrutiny can achieve the corollary result of raising a business' stature and confirming its leadership role among peers.
- Even successful, well-funded and well administered charitable giving programs have opportunities to enhance impact and contribute in a more significant way to the enduring performance of the business and society.
- Communicating about charitable giving impact is different and more emotion-driven then communicating other news of the business. Like any discipline, philanthropic communications has nuances and best practices. Those communications laced with personal stories engage partners, potential funders and other stakeholders in a way that a page of statistics cannot. It's the emotional pull of changed lives that binds people to the organization. The impact of gift becomes real.
- As easy as it is to overstate the impact of an organization's charitable giving based simply on size of the gift, it is just as easy to overlook the significant economic impact a single gift can make on an individual and his or her community when the investment is closely aligned with core priorities of the granting organization and addresses a real need.
Conclusion
TPG confirmed that the organization's philanthropic program has a direct and significant impact on individuals, organization, local communities, the state and beyond. But like most others, the organization benefits from a better understanding of its philanthropic position, as well as the potential that strategic philanthropy has for helping the organization maximize the impact, sustainability and performance.