In recent years, "social impact" has become a vital term across sectors - from nonprofits and social organisations to corporations, foundations and municipalities. But what exactly is social impact?
Broadly speaking, social impact refers to the effect on people and communities due to an intervention, activity, project, programme or policy. Often times, it also refers to a long-term effect, which differentiates it from an outcome. At Impactly, we take this further by focusing on both the social and economic value created by social initiatives, helping organisations document and amplify their positive social impact.
Social impact encompasses changes that improve the wellbeing of individuals or communities, particularly among vulnerable groups. But the term "vulnerable groups" entail a broad definition, as it can be employees at risk of long-term sickleave due to e.g. stress, while also entailing homeless people, youths with low mental health and elderly people feeling lonely.
Therefore, the positive changes can also range from increased access to education, improved health health, greater economic stability, or improved sense of security, and countering drug addiction. Importantly, social impact is intentional: it involves planned interventions designed to generate measurable improvements for specific groups or issues.
In the context of corporate and philanthropic sectors, social impact often aligns with goals related to environmental, social, and governance (ESG) initiatives, where companies actively work towards creating value beyond financial profit. The focus is on measurable changes in quality of life and community outcomes that benefit society at large.
At Impactly, social impact is not only about the positive outcomes of an initiative but also about providing a framework to quantify and communicate these effects.
We understand social impact, as a measurable and quantifiable documentation of the value created for people and society. So, we can measure how an organisation helps unemployed citizen into employment or education, but we only call it social impact once we have documented the social value - how the intervention has impacted participants overall life satisfaction - and/or the economic value for municipality, region and state.
Our platform empowers organisations to document their social impact and the socio-economic value through scientific measurement and reporting tools like Social Return on Investment (SROI) and Subjective Wellbeing Valuation (SWV). These methods allow for precise, data-driven assessments of how specific initiatives translate into improved wellbeing for individuals and measurable economic benefits for society at large.
Most organisations have a hard time showcasing that the effects of their interventions or initiatives lead to longterm impact. This is both due to it being resource heavy, expensive and difficult. Therefore, we provide a scientific method and approach that allows for better understanding, benchmarking and documenting of social impact straight after the initiatives ending.
It may be that organisations want to ensure after two years that the changes they created are still impacting the lives of the participants, which we help some with. But we need to also ensure that we don't over-complicate the social impact evaluation. By documenting both the social value and the economic value of social initiatives, we believe that organisation get a sound understanding of how they make a social impact, and by helping them understand the social value they create, they can also better assess whether or not their initiative will have long-term impact.
For example, if one intervention has helped 10 people into employment, but another organisation has done the same, while also increasing the life satisfaction significantly, it provides key insights for foundations, municipalities to prioritize which organisation deserves funding, as they can see both the social and economic benefits of the initiatives.
As global challenges grow more complex, social impact is more relevant than ever. Organisations that effectively measure and document their social contributions have a greater capacity to make data-driven decisions, secure funding, and drive systemic change. By highlighting both the human and economic value of their work, these organisations can foster trust and transparency with stakeholders and the communities they serve.
At Impactly, we see social impact as a driving force for positive transformation in society. Our tools and methodologies enable organisations to not only measure their influence but also to grow it—turning individual efforts into collective progress that benefits everyone.
Book a demo with our CEO, Johan, to start your impact journey with Impactly
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