In the field of philanthropy, there is currently a great deal of enthusiasm for applying “business principles” and “investment analyses” to decisions about funding nonprofit organizations and programs. These approaches all integrate measures of cost in their calculations of the relative benefits of funding a particular program or organization.
Our report, Measuring and/or Estimating Social Value Creation, describes and analyzes eight approaches to integrating cost in measuring and/or estimating social value creation. These include two classical methodologies (cost-effectiveness analysis and cost-benefit analysis) and six promising approaches that have been developed by philanthropic and nonprofit organizations in the last decade.
The accompanying cover letter from Alex Friedman, the foundation’s chief financial officer, and Fay Twersky, director of Impact Planning and Improvement for the foundation, describes how social value calculations inform the foundation’s approach and thinking.
The included appendices provide profiles of eight integrated cost approaches to measuring and/or estimating social value creation.
About the Report:
Title: Measuring and/or Estimating Social Value Creation: Insights into Eight Integrated Cost Approaches (45 pages, 424KB, PDF)
Prepared by: Melinda T. Tuan for the Bill & Melinda Gates Foundation
Date Published: December 2008
Related Documentation:
Title: Cover Letter Regarding the Report on Measuring and/or Estimating Social Value Creation (1 page, 48KB, PDF)
Written by: Alex Friedman and Fay Twersky
Date Published: December 2008
Title: Profiles of Eight Integrated Cost Approaches to Measuring and/or Estimating Social Value Creation (44 pages, 837KB, PDF)
Prepared by: Melinda T. Tuan for the Bill & Melinda Gates Foundation
Date Published: December 2008