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Published by costa.christ, 2017-02-24 09:51:52

2017 Epic Outlook

Epic Foundation's 2017 Outlook Report

Keywords: NGOs & Social Enterprises

Outlook 2017

Trends and Tips for NGOs, Social Enterprises,
and Strategic Donors

1



Outlook 2017

Trends and Tips for NGOs,
Social Enterprises,

and Strategic Donors

Nicola Crosta
Sam Giber

Elisa Sabbion

3

Copyright Acknowledgements Design team
Epic Foundation
This report was coordinated The report was designed
New York, by Nicola Crosta (Executive and prepared for publication
February Vice President, Epic Foundation) by Aleksander Dembinski,
2017. and drafted with Sam Giber Nuno Patricio and Caroline
(VP Strategy & Operations) Vezian.
and Elisa Sabbion (Director
Impact Monitoring & Research). ADDB.fr
Key analysis and inputs were
provided by Constantine
Christodoulou (Senior Associate,
Programs) and Kate Maleski
(Programs & Operations
Associate).

5

2,000+ NON-PROFITS REVIEWED
30,000 DATA POINTS ANALYZED

Methodology

Epic Outlook 2017 is a byproduct of Epic Founda- The data set for this project was created by consoli-
tion’s Global Selection Process. The process aims to dating aggregate data from the thousands of appli-
select a portfolio of high-impact organizations sup- cations that Epic Foundation received in its 2015 and
porting children and youth. Through this process Epic 2016 Selection Processes. Please take into considera-
has reviewed approximately 2,000 NGOs and social tion the context in which this data was collected, as
enterprises during 2015-2016. it has been derived from organizations’ applications
to Epic Foundation.
The analysis and research for this report was conduc-
ted by Epic Foundation team members. Initial data In addition to data collection and analysis, Epic’s
analysis and qualitative research was conducted Selection Process included in-depth social, financial
based on Epic’s impact assessment methodology, and operational due-diligence, interviews with ma-
analyzing 15 criteria across three key areas: Impact, nagement teams, and on-site field evaluations. Col-
Operations & Leadership. lectively, Epic’s due-diligence process takes place
over the course of seven months, from January to
July, each year.

7

We love
to share...

Since the launch of our global Selection Process in 2015, we have reviewed over 2,000 NGOs and
social enterprises. To date, our team has analyzed data from thousands of organizations, traveled
to meet fantastic teams in over 65 organizations across 5 continents, and collaborated with 100+
foundations, think-tanks, venture-philanthropy funds and others to identify top social innovations.

The primary purpose of these efforts was to select high-impact organizations supporting children
and youth globally. Our analysis has led us to select thirty organizations to join the Epic Portfolio
and we are proud to support them.
(See: www.epic.foundation/en/portfolio)

In service of these efforts we have developed a database with over 30,000 data points on organi-
zations in our sector, and – most importantly – collected qualitative notes from direct interactions
with hundreds of extraordinary social purpose organizations and philanthropists around the world.
In this Outlook, we share the practical insights and data that we have collected, both for organi-
zations looking to make an impact and the donors around the world looking to support them.

With this first Epic Outlook we would like to share facts, lessons learnt, and concrete tips for donors
and NGOs that wish to make a difference for children and youth around the world. We hope
you’ll find this useful and we look forward to continuing to learn and share.

Nicola Crosta Alexandre Mars
Executive Vice President Founder and CEO
Epic Foundation Epic Foundation

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11

Executive
Summary:
What have
we learnt?

Epic Foundation conducts an annual Selection together with qualitative analysis and observation
Process focused on identifying top NGOs and social derived from numerous field missions and discus-
enterprises working with children and youth around sions with donors, provides the basis for this report.
the world. During 2015 and 2016, Epic Foundation re- It is important to note that, although the reflections
viewed more than 2,000 NGOs and social enterprises and analysis in this report refer to NGOs and social
across over 100 countries. This analysis, which gener- enterprises of all kinds, the organizations assessed for
ated over 30,000 data points, was structured based this report are focused on working with children and
on Epic Foundation’s 15 organizational criteria to youth across the sectors of education, health, eco-
assess impact, operations, and leadership. This data, nomic empowerment, and rights and protection.

EXECUTIVE SUMMARY

Our analysis confirms 1. a clear mission found across very different geo-
that NGOs, social enter- graphic contexts and stages of
prises, and philanthro- what they aim to achieve is artic- development. In the second sec-
pists play a significant ulated in a well-defined theory of tion of this report, we are proud to
role in driving social change and linked to a coherent highlight some of these efforts by
innovation and impact set of programs and activities showcasing how Epic’s Portfolio
across both developing organizations are driving social
and more advanced 2. innovative processes innovation around the world.
countries.
that enable efficiency across hu-
Looking at the many organiza- man resources, M&E, finance, IT,
tions we have engaged with and digital strategy
in the last two years, we have
witnessed how philanthropic 3. results-based
endeavors and the work of NGOs leadership
and social enterprises are playing
a crucial role in fostering devel- that motivates skilled professionals
opment and social innovation at all levels of the organizations.
around the world. Our analysis Interestingly, data shows that
reveals the following common the top performing organizations
strengths amongst high-impact emerging from our analyses were
NGOs and social enterprises: not necessarily the largest (scale
doesn’t equal impact) or those
located in more advanced coun-
tries. Impactful organizations were

13

However, the potential On the one hand, NGOs
development and and social enterprises
impact of philanthropy remain limited by their
is hampered by a clear inability to articulate
market failure. their impact or to meet
basic programmatic
Philanthropy as a sector is ex- and operational
panding. We have observed, in requirements.
every country covered by this re-
search, that the supply of philan- Our analysis and experience
thropic capital is increasing. More revealed that many NGOs and
and more individuals, corpora- social enterprises, at least among
tions, foundations and new types the +2000 analyzed, struggle to
of social investors (for example satisfy basic operational and pro-
impact investors) are willing to grammatic requirements needed
provide capital to address social to be effective.
problems. We have also observed
that the number of NGOs and, —“30% of NGOs could
more recently, social enterprises is not clearly articulate
increasing and thus generating a the impact they aim
greater demand for philanthropic to achieve”
capital. Epic analysis puts into
stark relief that the supply and de-
mand don’t meet easily and that,
as a result, philanthropic capital is
generally not efficiently allocated
to support the most impactful
organizations.

Surprisingly, the most significant 40% of NGOs could not share au-
common gap we identified was dited financials, and less than 60%
an inability to clearly articulate had formal systems for managing
the impact that the organiza- donors. This data highlights some
tion aims to achieve and how of the key structural weaknesses
it is translated into a cogent set within the sector and shines a
of programs and activities. In a light on the practical challenges
review of the stated impact and donors face in their attempt to
objectives of randomly selected ensure funding is allocated to
applicants, 30% could not clearly robust, high-impact organizations.
articulate the impact that they
aimed to achieve. Surprisingly, a
large portion of the NGOs that
participated in the process were
found to lack basic operational
systems and capacity in key areas
such as finance, human resourc-
es, IT or monitoring. In addition,

What have we learnt? Outlook 2017

—“82 % of NGOs can see this focus in the emphasis
identify the lack placed on controlling overheads,
of unrestricted funding which often leads to a starvation
as a key barrier” cycle whereby funders underesti-
mate the cost of running an NGO
On the other hand, Interviews with management or social enterprise. This leads non-
donors are often failing teams globally and analysis of profits to misrepresent their costs
to provide the quantity applicant data has revealed while skimping on vital systems,
and quality of funding underinvestment to be a main which in turn reinforces funders’
that NGOs and social factor hindering the capacity of skewed beliefs about NGOs ef-
enterprises need to NGOs to achieve operational ficiency and thus their real need
achieve impact. and programmatic requirements. for resources. Amongst applicants
While the quantity of funds avail- to Epic Foundation in 2016, 35%
able is an important factor to of organizations stated that their
determine an NGOs capacity to donors make funding decisions
act efficiently and effectively, the based on the ratio of overhead
type of funding provided is also expenses to programs. Of those
key. In our 2016 Selection Process, organizations, 54% stated that this
87% of NGOs and social enter- focus causes a reallocation of
prises highlighted that the lack of expenses or underinvestment.
multi-year funding from donors
was a barrier to reaching their po- As this data shows, NGOs are in
tential impact. In addition, 82% of need of funding that gives them
organizations highlighted that the the flexibility to implement multi-
lack of unrestricted funding from year strategies and invest in their
donors was a barrier to develop- programs, operations, and staff. In
ment. As a result, many organiza- contrast with such needs, donor’s
tions are under pressure to design exhibit a preference for short-
and deliver an ever-increasing term, restricted project funding.
number of projects, without the
necessary operational resources.
Epic’s analysis shows how this can
lead to significant mission drifts,
in which organizations effectively
lose their purpose and focus.

These trends are exacerbated
by donors’ focus on short-term
efficiency instead of understand-
ing the cost of delivering quality
long-term social outcomes. We

15

A more deliberate 2. the increasing
focus, from both donors use of RCTs
and social purpose
organizations, on (Randomized Control Trials) to
achieving impact provide external validation to the
can help solve these effectiveness of programs
challenges and enhance
effectiveness across the 3. the way in which
sector. impact is communicated

On the positive side – this is per- for instance using social media,
haps one of the most convincing apps, or Virtual Reality (VR) tools.
lessons learnt from the analysis
and field visits – it is clear that There is an increasing awareness
organizations and donors that among NGOs and social enter-
are impact-focused can achieve prises globally of the importance
great results. of providing compelling data-
driven evidence on the impact
— “What high-impact of their work. Yet, most admit that
organizations have in they lack the systems and skills
common is a ‘culture they need to design and imple-
of results’” ment robust monitoring internally
and do not have the resources
to conduct external evaluations.
40% of participating NGOs de-
clared they never undertook an
external evaluation and 44% did
not have IT or software to collect
data from their programs.

Such organizations are defined The growing awareness of the
by their emphasis on measuring, importance of a strategic focus
refining, improving, and communi- on measuring and refining impact
cating their social impact. Today, amongst NGOs must now be
we see a new generation of met with the proper financial
NGOs and social enterprises who resources and capacity support
are able to collect information, from donors. Amongst donors, an
often in real-time, on their benefi- increased focus on impact and
ciaries, activities, and outcomes effectiveness would enable a
to drive actionable insights that smarter allocation of funding and
enable consistent improvements create healthy pressure on NGOs
to their operations. This commit- to provide convincing evidence
ment to measuring impact drives of impact. This implies that donors
results-based management inter- must adopt more sophisticated
nally and communications and tools to select and monitor the
fundraising externally. Particularly organizations they support. These
interesting areas of innovation in tools are available today and,
this field are: thanks to significant methodo-
logical and technological innova-
1. the use of technology tions, they are now less expensive
and more powerful than ever.
(ex. smartphones, CRMs and
cloud computing) to foster the
organization’s capacity to man-
age, analyze, and visualize large
amounts of data.

What have we learnt? Outlook 2017

Governments and they operate. To achieve impact
new intermediaries at scale or enact system-wide
also have a key role change, organizations must
to play in fostering the recognize the need to partner
professionalization with government, international
of philanthropy agencies, and philanthropic
and ecosystems intermediaries. Yet, most organi-
that support social zations identify securing strong
innovation. partnerships with such actors to
be a key challenge. For example,
The quantity and quality of in- 43% stated that a lack of partner-
novation brought about by NGOs ship with government is a moder-
and social enterprises is extraor- ate to extreme barrier to scaling
dinary. But NGOs alone are very or enhancing impact, and only
seldom capable of achieving 28% had a formal partnership or
systemic impact in the thematic Memorandum of Understanding
and geographic areas in which with international agencies.

17

Epic’s process has highlighted the There is an important and unique Summing up
importance of not only support- role for each of these actors to
ing individual NGOs, but also of play in supporting the capacity Increasing communication and
creating national ecosystems and of social purpose organizations collaboration across our sector is
regulatory frameworks in which and the development of the a critical component of our mis-
they can thrive. Although this philanthropic sector. Analysis and sion at Epic Foundation. We hope
should be a key objective for all field visits have shown clearly the reflections and findings in this
actors, governments and inter- that, when the local ecosystem report drive useful discussions
national agencies are perhaps offers NGOs access to technical between NGOs, social enter-
best positioned to focus on the assistance and is conducive to prises, and donors, and help to
regulatory dimensions of support networking, social innovations evidence how philanthropy and
to the sector. can be supported and brought to social purpose organizations are
scale. It is in this context that gov- at a strategic inflection point.
At the same time, a new breed of ernments, international agencies, The global rise of philanthropic
philanthropic intermediaries and and philanthropic intermediaries capital can help turn NGOs and
capacity developers are play- can play a key role by proactively social enterprises into key drivers
ing a key role in supporting social engaging with donors, NGOs, and of social development and inno-
purpose organizations in the field, social enterprises to support, iden- vation. But this will happen only if
and could be further supported tify, and scale social innovations both social purpose organizations
by donors and governments. for systemic impact. and donors adopt a more deliber-
Examples of outstanding philan- ate focus on impact, supported
thropic intermediaries we have by adequate instruments and
encountered include Dasra in stronger ecosystems.
India, Impetus PEF in the UK, Robin
Hood in the USA, and Change
Fusion in Thailand. Finally, global
networks of donors are emerg-
ing – such as the OECD network
of Foundations or the European
and Asian networks for venture
philanthropists (EVPA and AVPN)
– to provide powerful platforms
to identify and disseminate good
practices across borders.

What have we learnt? Outlook 2017

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21

Top 10
Findings
And Tips
for NGOs,
Social
Enterprises,
and
Donors

1. 4. 8.

Social purpose organizations The most entrepreneurial NGOs Beyond overhead: donors need
and donors need to more clearly are taking advantage of new to adopt smarter metrics to
define the impact that they want funding streams. measure the efficiency of NGOs
to achieve. and social enterprises.
5.
2. 9.
Digital transformation drives social
Social purpose organizations and innovation in NGOs and social NGOs and social enterprises’
donors need to recognize the enterprises. boards can provide key oversight,
equal importance of scaling and fundraising, and technical
deepening impact. 6. support.

3. Attractive communication is not 10.
synonymous with impact.
Monitoring and Evaluation is still NGOs and social enterprises
weak in most NGOs. 7. can foster systemic change but
require conducive local and
NGOs and social enterprises need national ecosystems.
reliable – unrestricted and multi-
year – support.

23

1. Key Findings

Social A significant percentage of the A clearly defined impact en-
purpose organizations reviewed showed ables organizations to consis-
organizations a lack of clarity in defining their tently test, measure, and refine
and donors impact, which in turn inhibited their programs and thus improve
need to more the organization’s ability to de- over time. Analysis highlights
clearly define sign a coherent set of programs how the ability of an organiza-
the impact and metrics. In a review of one tion to articulate a clear target
that they want hundred applicants randomly impact, and thus mission, en-
to achieve selected for this report, 30% hances the motivation of staff,
were unable to provide a mea- the engagement of donors, and
surable and specific desired im- ultimately the organization’s
pact. Interestingly, the majority capacity to achieve their target
of total organizations reviewed impact.
(64%) focus on multiple sectors.
We observed that, while focus-
ing on multiple sectors is often
the result of a conscious choice
to adopt a holistic approach,
it also reflects a reactive mul-
tiplication of programs, lack
of strategic focus, or – often
donor-driven – mission drifts. The
top performing organizations
identified by Epic are commonly
centered on testable, clearly
articulated hypotheses.

Epic Impact Factors. Outlook 2017

Tip For NGOs Tip For Donors

Design your programs around When assessing a social purpose
clear, measurable social impact organization check whether the
objectives. Precision in the formu- organization’s programs align
lation and articulation of impact clearly with both their overall mis-
enables enhanced results, com- sion and their measurable long-
munications, and fundraising. term objectives.

The Data

30% of stage 1 applicants sampled (100)
were unable to provide a measurable or specific
impact/goal
64% of organizations reviewed working with
children and youth focus on more than one sector

How many sectors do NGOs What sectors do NGOs
& social enterprises focus on? & social enterprises focus on?

45 % % 90 % 79 %
40 % 80 %
35 % 36 70 % 48 48
30 % 60 % 44
25 % 26 50 %
20 % 20 18 40 %
15 % 30 %
10 % 20 %
10 %
5%
0% 0%

1 Sector Education
2 Sectors EanmdprProvoterHeecmtialeotnnht
3 Sectors
4 Sectors

1 2016 Data (n = 1931) Economic 1 2016 Data (n = 1931)
Rights
25



27

Good practices

Apnalaya Apnalaya’s well-structured, integrated community
India development approach allows them to address
multiple basic needs. To strengthen and focus the
apnalaya.org impact of their programs, Apnalaya consolidated
its work, moving from five to three strategic areas
(Health and Disability, Gender and Livelihood,
and Responsible Citizenship).

Apnalaya works with people living in some of the poorest slum
communities in Mumbai to help them achieve a better quality of life.

Epic Impact Factors. Outlook 2017

REACH REACH has clearly defined and articulated their
Vietnam impact, offering a range of short vocational
training programs that are periodically reviewed
reach.org.vn/en-US to better respond to the job market needs and
demands. This focus on systematic refinement of
curriculum drives REACH’s impact.

REACH enables thousands of disadvantaged Vietnamese youth
to reach for their future via access to free vocational training and
employment opportunities.

29

Good practices

Nurse-Family NFP’s strategy was initially defined in the ‘70s
Partnership based on scientific research. Since then, their
USA approach has been regularly reassessed in multi-
ple randomized control trials (RCTs) to make sure
nursefamilypartnership.org that the validity of the approach is constantly and
rigorously verified.

NFP, a maternal and early childhood health program, provides critical
support to low-income first-time moms, and their babies.

Epic Impact Factors. Outlook 2017

31

2. Key Findings

Social Across all sectors, stages of It seems critical that both donors
purpose development, and geographic and social purpose organiza-
organizations regions, the key strategic objec- tions place at least an equal
and donors tive indicated by a majority of emphasis on deepening and
need to organizations is to grow and refining impact alongside their
recognize to scale their programs, which focus on promoting growth as
the equal often happens at the expense an objective in itself.
importance of deeper impact. This appears
of scaling and to be largely driven by donors,
deepening as many organizations describe
impact themselves as being caught in
the “tyranny of growth” in which
they must sell a story of growth
to access the funding needed
to work. The negative effects
of this dynamic are particularly
clear in both new organiza-
tions that grow faster than their
capacity allows, and in older,
larger organizations that are left
unable to articulate how a mul-
titude of programs initiated over
time contribute to a cohesive
programmatic strategy.

Epic Impact Factors. Outlook 2017

Tip For NGOs Tip For Donors

Avoid creating a narrative Evaluate the depth of the impact
centered around constant by considering both how difficult
growth in order to enable your it is to achieve a given outcome
organization to prioritize other and whether that change is long-
strategic goals, such as refining lasting.
the impact of your current
programs.

The Data

2% of reviewed NGOs state that their
organization is already at scale

Over the next 1-3 years what What best describes
best describes your organization’s the primary focus of your
current vision in terms of scaling organization today?
or enhancing your impact?

65 % 61.86 %
55 %
50 % 50 % 44.67 %
45 % 45 %
40 % 17.89 40 % 18.47 20.10
35 % 35 %
30 % 6.83 30 % 16.76
25 % 1.99 25 %
20 % 11.43 20 %
15 % 15 %
10 % 10%

5% 5%
0% 0%

ESnchalaAleDnrriceaivnenaoeftnddsiiihyoeSgvemmnacnatipphqtfaiilsaauaocecccnaltntaiaucltneytpe
SuDsRSteecfaviiaenlnliiipppprrrronnnoooopgggiggggrrrrncccaaaaguuurrrrrrnmmmmsssseeeennntttw

1 2015 Data (n = 805) 1 2016 Data Submitted Applications (NGOs; n = 1229)

33



35

Good practices

ThinkForward ThinkForward reviewed their Theory of Change
UK and programs for greater impact. To do so,
they reduced coach caseloads and tightened
thinkforward.org.uk enrollment criteria. Meanwhile, the first student
cohort completed the 5-year program, showing
substantial outcomes and proving that the
organization is now ready to scale without
compromising the depth of their impact.

ThinkForward provides long-term, personalized coaching to young
people most at risk of unemployment to enable then to transition into
sustainable work.

Epic Impact Factors. Outlook 2017

Angkor Angkor Hospital for Children has recently re-
Hospital focused their vision, mission, and values, which
for Children redefined their strategic priorities for the next
Cambodia five years. This has led to increased transparency
and specificity in their interventions for quality
angkorhospital.org pediatric care in Cambodia.

AHC provides quality medical treatment to all children in need, while
also working to spread expertise on proper health practices across
Cambodia.

37

Good practices

PathFinders While the provision of services by PathFinders
Hong Kong keeps growing as more migrant workers enter
Hong Kong, PathFinders continues to deliver pro-
pathfinders.org grams that are highly targeted to individual cases
and maintains a strong focus on deepening their
impact.

PathFinders ensures that the most vulnerable children born in Hong
Kong, and their migrant mothers, are respected and protected.

Epic Impact Factors. Outlook 2017

39

3. Key Findings

Monitoring The rigor with which organiza- This creates a unique oppor-
and Evaluation tions monitor their programs and tunity for donors today to help
is still weak in evaluate their own impact is programmatically strong organi-
most NGOs perhaps the clearest common zations modernize their outdat-
denominator of top performing ed monitoring and evaluation
organizations in any geogra- processes, and thus increase
phy examined. Still, only 58% of their sustainability overall.
organizations reviewed have
completed an external evalu-
ation, and 68% of organizations
lacked robust monitoring soft-
ware. At the same time, major
donors are increasingly focused
on supporting organizations
with advanced monitoring and
evaluation systems. As a result,
organizations who are program-
matically strong may miss out on
an increasing share of philan-
thropic contributions due to a
lack of satisfactory monitoring
and evaluation processes.

Epic Impact Factors. Outlook 2017

Tip For NGOs Tip For Donors

Evaluations enable your long- Alongside understanding better quality
term success. If you don’t have organizations’ programs, 150 %
the resources to implement one ask about their processes for
today, look to partnerships with monitoring and evaluating their
university researchers for help. impact in order to identify who
could benefit from your support
by upgrading these systems.

The Data

58% of applicants have never completed
an external evaluation of the impact of their work

How does your organizations monitor
and/or evaluate their programs?

100 % 92 %
90 % 83
80 %
70 % 71
60 %
50 % 58
40 %
30 %
20 %
10 %
0%

ShoMrtonTiterorimng
IExntteerrnnaallL EEovvnMaagollnTuuiteaarttoiirimoonnnssg

1 2016 Data Submitted Applicants (n = 1328)

41



43

Aangan Good practices
India
Aangan is bringing a systemic change in child
aanganindia.org protection across India at both the local and
national levels. Through the Parents & Children
Against Trafficking/Harm mobile app, Aangan
is collecting real-time child protection data and
training community volunteers on how to use it.
This information is shared with different states and
local organizations to establish collaborations on
urgent actions for child protection.

Aangan works to strengthen India’s child protection system so that
even the most vulnerable child can have a safe childhood.

Epic Impact Factors. Outlook 2017

Educate! Educate! is continually improving and expanding
Uganda their M&E capabilities through innovative systems.
Educate!’s SMS and smartphone-based reporting
experienceeducate.org system allows them to track the progress of ben-
eficiaries in over 400 schools across Uganda and
to share this information in real time.

Educate! supports educational systems in Africa in order to empower
and train the next generation of leaders and entrepreneurs.

45

Good practices

Society SNEHA leverages data to constantly refine their
for Nutrition, programs and to advocate for evidence-based
Education policy changes. SNEHA’s little sister mobile appli-
& Health cation integrates real-time field reports of gender-
Action based violence and community-based interven-
(SNEHA) tions with program services. This mobile platform
India helps to compile and interpret data on gender-
based violence and crowd-source incident reports
snehamumbai.org from the informal settlement of Dharavi, Mumbai.

SNEHA works in partnership with communities and health systems to
empower women and their children in urban slums to improve their
health.

Epic Impact Factors. Outlook 2017

47

4. Key Findings

The most Despite continuous innovation At the same time, there is an
entrepre- in the financing of nonprofits increasing focus among or-
neurial NGOs and social enterprises among ganizations on fostering financial
are taking strategic philanthropists and sustainability via the imple-
advantage foundations, there continues to mentation of social enterprises,
of new be considerable inefficiencies within or alongside their existing
funding between the supply and de- social programs. Interestingly,
streams mand of philanthropic capital. these social enterprise initiatives
Multi-year and unrestricted often reinforce or enhance the
funding remains elusive for impact of an organization’s
many organizations, hampering programs.
innovation and impact across
the sector. However, there are
encouraging trends among
both donors and social purpose
organizations who are working
to break down long-standing
barriers to impact. Donors have
increasing interest in providing
funding through new finan-
cial instruments such as Social
Impact Bonds and Recoverable
Grants, which introduce ele-
ments of performance-based
agreements into grant-making
and social investment.

Epic Impact Factors. Outlook 2017

Tip For NGOs Tip For Donors

Look for opportunities to estab- To learn how to fund social en-
lish a social enterprise that can terprises, consider directing your
create new sources of funding giving towards NGOs with social
while also serving to enhance the enterprise operations.
impact of your existing programs.

The Data

43% of organizations in Epic Foundation’s
portfolio have initiated social enterprise
operations

How are social enterprises financed?

50 % 49 %
45 %
40 % 33
35 % 27
30 %
25 % 18
20 %
15 % 13 8
10 % 8 8
4
5%
0% 1

OtherCionevqmPeuFrpisttooerytgiGmigrDrtiineeaavovnbnatnmttebs(rltaccPeelaaRwmlIasppaetoii)rttneatdaaslnlsd Series B Series A
Series C investment

seed

Angel

1 2016 Data Submitted Applicants (n = 1328)
1 2016 Social Enterprise Applicants (95)

49


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