aes16

Natasha Doherty (Deloitte Access Economics)

The social programs funding landscape is changing with increasing interest in social impact investing, including current and/or planned trials in NSW, Queensland and South Australia.

This presentation will consider the design models identified in Bamberger, Rugh and Mabry (2012) to determine the role of experimental and quasi-experimental designs, program logic theory, and qualitative methods in impact investing evaluations. It then applies these to evaluation practice, to develop a practical framework for measuring social impact.

By linking funding to social outcomes achieved, the role of evaluation becomes increasingly important in impact investing. This raises the profile of the evaluator and directly connects the evaluation findings to funding provision. As such, the evaluator’s work may be placed under greater scrutiny than previously. The implication of this is greater focus on being able to quantify the social impact against a comparator, meaning evaluations based on the theory of change becomes central to impact investing.

It also has implications for methods, with more use of experimental and quasi-experimental evaluation designs rather than qualitative designs. To assist with this, the presenters have developed a four-stage framework for measuring social impact: (1) define the social issue; (2) identify and classify costs; (3) review data sources; and (4) undertake cost analysis.

The session will show that evaluations are key to impact investing and measuring social outcomes achieved, raising the evaluator’s profile and inextricably linking their findings to funding provision in a way not previously conducted.