An interesting new tool that shows cost of achieving specific outcomes compared to national averages, in terms of philanthropic giving, allows a company to benchmark their spending, improve budgeting, engage with non-profit partners, and increase impact.
The Price of Impact (POI) Index, developed by Impact Genome Project and part of a new set of benchmarking tools launched in collaboration with The Conference Board and with support from Moody’s, shows how much it costs to solve problems in 100 different areas of social impact, including education, economic development, and the environment. Using inputs from thousands of US-based nonprofits and social programs, the Index creates cost-per-outcome averages.
In the press release, Paul Washington, Executive Director of the ESG Center of The Conference Board, states why this new tool is worth noting for corporations: “In an era where corporations are on the front lines in addressing major societal issues, corporate philanthropy is one of the key tools at their disposal to have an impact. As businesses give generously, they must also give wisely…That is our purpose with this launch: to enable philanthropic dollars to do more. This is a transformative opportunity.”
The Conference Board’s flagship report, Data-Driven Corporate Philanthropy: The Revolutionary Potential to Change Lives, was based on data from the POI Index. Two overall highlights include:
- Higher costs-per-outcome (CPO) often address issues that disproportionately affect minorities.
- COVID-19’s fallout will likely raise the cost of economic development outcomes – which is already relatively high – as the pandemic continues to increase demand for areas like job training and personal finance education.
The Index is intended for governments and individuals, as well as corporations. The impact areas covered include: Arts, Critical Human Needs, Culture & Identity, Economic Development, Education, Global Development, Public Health, Science & Technology, Sustainability & Environment, and Youth.
The POI Prices shown in the Index “should be interpreted as the expected cost-per-outcome (CPO) for a nonprofit program to help one beneficiary achieve the desired outcome…For example, a CPO of $2,900 for the outcome of “Job Readiness” means it costs a typical nonprofit $2,900 to help one individual become job-ready.” Examples of other CPOs:
- Infectious Disease Prevention – (Global Health focus – Global Development Impact area) – $53
- Influential Research – (Innovation focus – Technology & Science Impact area) – $24,650
- Reduce National Carbon Footprint – (Climate Change Mitigation and Adaptation focus – Sustainability & Environment Impact area) – $5,346 ($38 for Individual Carbon Footprint)