Measuring Impact for Continued Growth

Abstract

Here, the author asks the question that is always on the table for an impact investor: How do we know that the investment is bringing about the intended change in the community? There are different frameworks that can be used to measure impact of the fund: the Logical Framework (LF), Results Framework (RF) and Performance Framework (PF). He enumerates the different principles that guide the measurement of impact, noting that measurement should be based on quantifiable evidence, should be participatory in order to include all stakeholders, and should be both cost effective and clear. The author argues that measuring and reporting impact builds a case for future or additional investment.