A set of principles on good impact reporting that effectively show funders how charities make a difference has been published by a consortium of charities for sector comment. The consortium including New Philanthropy Capital (NPC), the Charity Finance Directors’ Group (CFDG) and the Institute of Fundraising wants feedback so that it can produce a document in February 2012, for endorsement by the Charity Commission and the Office for Civil Society.

The Charity Commission has welcomed the initiative: “It is a very valuable initiative led by the sector for the sector and the Commission is very supportive of it and keen to see it progressed.”

The six general principles of good impact reporting are:

·         Clarity – the reader can quickly and easily understand the organisation through a coherent narrative

·         Accessibility – relevant information can be found by anyone who looks for it

·         Transparency – reporting is clear, open and honest

·         Accountability – stakeholders have the means to hold the charity to account

·         Proportionality – the detail of reporting reflects the size and complexity of the organisation

·         Verifiability – claims can be verified externally

The paper also identifies six specific principles about what charities should communicate about their impact:

·         Clear purpose – what problems are we trying to address? What is our mission?

·         Defined objectives – what do we aim to achieve?

·         Coherent activities – what are we doing to achieve our objectives?

·         Demonstrated results – what are we achieving and how does this compare with our objectives?

·         Evidence – how do we know what we are achieving?

·         Lessons learned – what are we learning about our work?

NPC’s head of development Tris Lumley says: “Good impact reporting is difficult, and requires charities to think through and get to grips with exactly how their activities work together to achieve their final vision.”

The consortium wants to hear from philanthropists “to ensure that these principles are as constructive as possible in helping voluntary and community sector organisations to communicate their impact”.

Lumley adds: “We want charities to have more control over shaping how they are perceived by the public, shifting the focus away from the dreaded admin costs and towards what really matters: the difference they make in people’s lives.”

To help charities demonstrate their impact, the Media Trust recently partnered with Sainsbury’s to launch Untold Stories, a national initiative that offers 15 charities across the UK the chance to tell their story through a short film.

Media Trust chief executive Caroline Diehl says: “Impact reporting is a challenging area for many charities because it costs both money and time, but it is an essential area that must be invested in. At Media Trust we believe that evaluation and impact reporting should be fully integrated with communications. This allows charities to capture stories and communicate them successfully, and even more importantly, enables charity beneficiaries to have their own voice through creative use of digital media and story telling.”

To download the consultation report

To submit feedback on the report, email tlumley@philanthropycapital.org.

Sector must do more to attract philanthropists