2017 Epic Outlook

51

Good practices

DUO for a JOB Duo for a JOB has made use of an innovative
Belgium social impact bond to successfully grow their
program. The project aims for 35% of the cohort to
duoforajob.be find employment who otherwise wouldn’t have.

Duo for a JOB supports immigrant youth seeking employment through
intergenerational mentoring by experienced professionals in early
retirement.

Epic Impact Factors. Outlook 2017

Gastromotiva Gastromotiva created a network of more than 60
Brazil restaurants in Brazil that finance their students’ vo-
cational training expenses and employ them after
gastromotiva.org/en their graduation. Gastromotiva’s model leverages
the demand of restaurants for quality chefs and
cooks, generating a revenue stream that makes
their program sustainable.

Gastromotiva seeks to address social inequity and transform the lives of
Brazil’s youth by preparing them for a career in the culinary industry.

53

Spark Good practices
USA
Spark, through its Corporate Champions Program,
sparkprogram.org taps into valuable corporate resources while
offering companies an opportunity to engage
employees in a mentorship program that uses
the talent of experts as part of a meaningful CSR
contribution. This program creates an opportunity
for Spark’s students to improve their skills and get
exposure to interesting career paths.

Spark inspires 7th, 8th, and 9th graders in underserved communities to
succeed in high school and beyond by engaging them with mentors
and future careers.

Epic Impact Factors. Outlook 2017

55

5. Key Findings

Digital Digital transformation is increas- Furthermore, analysis shows that
transformation ingly common across the sector. the evolution of technology in
drives social Analysis highlighted that many the sector creates new risks as
innovation organizations’ top operational most organizations still lack for-
in NGOs priority is to “update our IT sys- mal management policies and
and social tems” or to “move our systems dedicated professionals needed
enterprises into the cloud”. Many organiza- to manage IT related risks.
tions are actively driving tech-
nological innovation by creating
new apps, websites, and net-
works to enhance their pro-
grams and to reach more ben-
eficiaries. While the trend overall
is positive, securing funding and
ensuring that systems are imple-
mented properly continues to
be a challenge for most organi-
zations. Organizations regularly
share with Epic that donors are
hesitant to provide funding for
technology because they would
“rather build a school than an IT
database”.

Epic Impact Factors. Outlook 2017

Tip For NGOs Tip For Donors

Utilize providers offering pro-bono Invest in overhead. Funding back-
services and products to enhance office systems is crucial to ensure
your operational capabilities such that organizations can grow finan-
as LinkedIn Volunteer, Taproot +, cially and increase impact in the
CiviCRM, Salesforce, TechSoup coming years.
Global, Microsoft, and Trustlaw.

The Data

83% of organizations reviewed report that
they are planning to pursue new technologies,
but lack the resources to implement them
56% of applicants do not have volunteer
management, mobile data, or project planning
software

What Do NGOs & Social Enterprises Use Software/IT Systems For?

90 % %
80 %
70 % 77
60 %
50 % 42 56
40 % 32 44
30 %
20 % 27 37
10 % 18 17
11
0% 2 3

VoluntSceCaloePupMrrlesmstooajmnonimeetcanMucmiCootnnolrneiloraFbsipgceiIllsgmnotcanfaeuettttaiiomnpOendooowmetrnlpricsnnaheaintncronreaalgtetaerl
DonorDamtaancaolgleecmtieoHnntR
1 2016 Data Submitted Applicants (n = 1328)

57



59

Good practices

Simplon.co Simplon.co puts underprivileged and underrep-
France resented talents at the center of the innovation
process by empowering these groups with intro-
simplon.co ductory courses to technology and programming
as well as to entrepreneurship skills.

Simplon’s model is demonstrating how social innovation, employment,
and projects are accelerated through technology empowerment.

Epic Impact Factors. Outlook 2017

Living Goods Living Goods empowers every Community Health
Uganda Promoter with an android phone and the Smart
Health™ app that automates diagnoses, sends
livinggoods.org drug adherence reminders, identifies high-risk
pregnancies, and enables managers to see the
performance of any agent in real time.

Living Goods supports and empowers individuals to improve the health
of their community and make a living for themselves.

61

ScriptEd Good practices
USA
ScriptEd courses are taught by software develo-
scripted.org pers on a volunteer basis, ensuring that students
not only have exposure to the most up-to-date
knowledge available, but also role models and
potential mentors in the field. Students are ex-
posed to the tech industry through field trips to
start-ups and technology companies, engaging
with guest speakers in-class, and in job sha-
dowing opportunities.

ScriptEd offers underprivileged students access to the computer
science courses and professional opportunities that open doors for
careers in technology.

Epic Impact Factors. Outlook 2017

63

6. Key Findings

Attractive In our digitally driven world,
communica- NGOs can connect easily with
tion is not the public and with donors via
synonymous their website and social media.
with impact In this context, communication
becomes a key driver of fund-
raising. Analysis has identified
great examples of organizations
using their websites and social
media to increase access to
their programs, engage pro-
gram alumni, recruit volunteers,
and – indeed – run fundraising
campaigns. Despite the positive
potential of digital strategies, Ep-
ic’s analysis has revealed many
organizations who effectively
utilize digital communications
to dominate online funding, but
who lack the programmatic
quality of less e-savvy organiza-
tions. This poses a challenge for
donors who, in the absence of
due diligence, can fall into a
communications trap and end
up supporting organizations who
communicate effectively but
don’t necessarily deliver impact.

Epic Impact Factors. Outlook 2017

Tip For NGOs Tip For Donors

Improving digital strategy can Be wary of organizations with
enhance your programs. Utilize great communications capa-
your website and social media as bilities online and little depth of
an access point for both current impact: quality of digital commu-
and potential volunteers and nications does not equal impact
beneficiaries. achieved.

The Data

94% of reviewed organizations have an active
Facebook page, 65% use Twitter

What Social Media Channels do you use?

100 % 94 %
80 %
60 % 64
40 %
20 % 43
0% 30

12 2
1000

Other 1 2016 Data Submitted
Weibo Applicants (n = 1328)
Orkut
RenRen
Ozone
Linkedin
Instagram
Snapchat
Twitter
Facebook

How do you use your website?

100 % %
80 %
60 % 79 70 64 65 76
40 %
20 % 40 49 60
0% 42

3 28 23
0
31

CustIIOonnneffliPmooCnrraeroretmmPSrPnmSiraauoettiigormpgsoonrde-prhinnuaUcopcrpmstet Videos Press Financials SVoolciuanltHeMoeterliidinnaeg
Sign-Up Research

Program DonatiOonlnisne

1 2016 Data Submitted Applicants (n = 1328)

65



67

Good practices

Street League Street League actively pursues clarity and trans-
UK parency in their communications on impact.
Street League’s visually engaging website pro-
streetleague.co.uk vides a platform for targeted youth to register and
engage. Street League is active on social media
and has a large network of followers.

Street League uses sport to engage with long term unemployed youth
living in disadvantaged areas in the UK and equips them with the skills,
knowledge, confidence and experience needed to gain sustained
employment.

Epic Impact Factors. Outlook 2017

First Graduate First Graduate is particularly effective in
USA measuring, explaining, and communicating their
impact. First Graduate has a great website to
firstgraduate.org display their programs and they constantly add
new features, videos, and data to provide more
information to donors and to the public.

First Graduate is a San Francisco-based college success program that
helps students finish high school and become the first in their families to
graduate from college ready to pursue meaningful careers.

69

Good practices

Sport dans Sport dans la Ville is a leader in Europe in terms of
la Ville effective and transparent communication. Sport
France dans la Ville recently launched a new website
providing visual data and substantial information
sportdanslaville.com on programs and impact while also facilitating
the engagement of users in order to boost the
communication with youth, the public, and
private donors.

SDLV aims to promote social and professional integration of young peo-
ple from disadvantaged neighborhoods, through sport.

Epic Impact Factors. Outlook 2017

71

7. Key Findings

NGOs Analysis and interaction with Donors today need to break
and social hundreds of NGOs and social from the traditional project-
enterprises enterprises shows that a key focused approach to funding
need factor hampering organizations social purpose organizations
reliable – to reach their full potential is the and provide the unrestricted
unrestricted lack of multi-year, unrestricted multi-year funding that organi-
and funding. This type of funding is zations need to reach their full
multi-year – the lifeblood of organizations. potential.
support Despite this, many donors prefer
providing restricted funds tied
to a visible project or a certain
number of beneficiaries, and
many opt for one-off donations
versus commitment to support
organizations for longer periods.
Unrestricted funding provides
the opportunity to strengthen
social purpose organizations
with investments in operations, IT,
fundraising, and human resourc-
es. Multi-year funding allows
organizations to plan strategi-
cally and to avoid disruptions in
program delivery that can hurt
beneficiaries.

Epic Impact Factors. Outlook 2017

Tip For NGOs Tip For Donors

Utilize capital campaigns to raise To enable yourself to responsibly
the funds needed to make multi- provide unrestricted funding, and
year investments in the operation- thus resist the urge to provide
al and programmatic capacity project-based funding, ensure
required for your organization to that you can analyze organiza-
reach full potential. tion’s overall and not just specific
initiatives.

The Data

82% of reviewed organizations state
that the need for unrestricted funding is
a moderate to extreme barrier to their ability
to scale or enhance their impact

To what extent is the need for To what extent is the need for
multi-year funding a barrier for NGOs unrestricted funding a barrier to
and social enterprises’ ability NGOs and social enterprises’ ability
to scale or enhance their impact? to scale or enhance their impact?

50 % % 50 % %
40 %
30 % 36 40 % 32
20 % 28 30 % 26
10 % 20 %
23 24
0%
76 10 % 89

0%

MMoEoMxddtEorNeerxreodttaraNetmtreoeAeetamtBBBBeeAaaaarrrrBBBrriirriiaaaeerrreerrrrrrriiitteeerroro
MMoEoMxddtEorNeerxreodttaraNetmtreoeAeetamtBBBBeeAaaaarrrrBBBrriirriiaaaeerrreerrrrrrriiitteeeroror

1 2016 Data Submitted Applicants (n = 1315) 1 2016 Data Submitted Applicants (n = 1305)

73



75

Good practices

Bottom Line Bottom Line has been successful in securing an
USA important multi-year funding agreement. Last year,
Bottom Line was selected to be one of five high-
bottomline.org performing nonprofits focused on education and
workforce development, each receiving $4million
over four years as a part of the Boston Workforce
Investment Network (Boston WINs) to provide a
continuum of support for students from school to
job placement.

Bottom Line helps low income, first generation students get into col-
lege, graduate from college and go far in life.

Epic Impact Factors. Outlook 2017

Ali Forney The Ali Forney Center has been able to design
Center and successfully implement an ambitious fund-
USA raising campaign. In January 2016, AFC launched
the Harlem No Hate capital campaign to raise
aliforneycenter.org funds and buy the auctioned ATLAH church in
Harlem, three blocks from the AFC drop-in center,
with the goal of providing additional housing and
vocational services to the homeless LGBTQ youth
it supports.

AFC protects LGBTQ youth from the harms of homelessness and em-
powers them with the tools needed to live independently.

77

Good practices

Prerana Prerana intervenes to end intergenerational traf-
India ficking in the red light areas of Mumbai by sup-
porting education, offering shelter to mothers and
preranaantitrafficking.org children during the most dangerous hours of the
night, placing at-risk children in secure long term
institutions, and more.

Prerana seeks to end the cycle of intergenerational trafficking in Mum-
bai by empowering and enabling mothers to protect their children.

Epic Impact Factors. Outlook 2017

79

8. Key Findings

Beyond Efficiency, in terms of overhead Epic’s field assessments evi-
overhead: and cost-per-beneficiary, con- denced that organizations feel
donors need tinues to be a major factor driv- hesitant to make investments
to adopt ing donors’ funding decisions. that would not show an imme-
smarter Of the 35% of organizations who diate return because they are
metrics to stated that their donors make concerned that donors analyz-
measure funding decisions based on ing overhead ratios or cost-per-
the efficiency the ratio of overhead expenses beneficiary would not continue
of NGOs to programs, 53.9% stated the to support them, or that the
and social focus caused a reallocation of charity rating agencies would
enterprises expenses or underinvestment. downgrade them. We see the
Similarly, cost-per-beneficiary need to shift the discussion
is commonly used by donors towards a consideration of how
to compare organizations and investments can drive long-term
draw conclusions on their ef- revenue growth and increased
fectiveness. This simplistic focus impact.
on cost-per-beneficiary causes
organizations delivering services
with significantly different costs
(ex. the cost of vaccinating 1 kid
vs supporting 1 kid at school for
a year) and working in places
where costs are very different to
be erroneously compared.

Epic Impact Factors. Outlook 2017

Tip For NGOs Tip For Donors

Develop your budgets in consid- Move beyond a simplistic focus
eration of your 3-5 year strategy, on efficiency. Consider how in-
not your goal for next year. Com- vesting today in an organization’s
municate this vision to your donors operations, management, and
to explain why investments today staff will help the organization to
are needed to achieve the long grow in the future.
term mission.

The Data

54% of organizations reviewed stated that
a donor’s focus on low overhead expense
ratio causes a reallocation of expenses
or underinvestment
66% of organizations reviewed have more
than ten full-time employees

What is the number of staff working for NGOs and social enterprises?

50 % %
40 %
30 % 44.0
20 %
10 % 23.9
12.6
0% 1.5 1.5 2.8 5.5 8.2

1000+ 1 2016 Data (n = 1931)
500-1000
250-500
100-250

50-100
25-50
10-25
1-10

81



83

Good practices

TeenForce In 2016, TeenForce introduced a new manage-
USA ment and measurement tool called Net Promoter
Score, a proxy to measure the quality and effec-
teenforce.org tiveness of the services provided to youth that is
designed for rapid feedback and iteration.

TeenForce is a social enterprise helping to solve the youth employment
crisis by offering businesses a convenient and cost-effective platform to
employ enthusiastic and well-prepared young workers.

Epic Impact Factors. Outlook 2017

Haven House Haven House relies on a number of rigorous
UK tools and metrics to assess the efficiency and
effectiveness of their work. They have been
havenhouse.org.uk annually producing Quality Accounts, an
important way for organizations delivering
National Health System (NHS) services to report
on quality and show improvements in the services
they deliver.

Haven House supports families and cares for children and young peo-
ple with life-limiting and life-threatening conditions across in the UK.

85

Nyaka Good practices
Uganda
Nyaka’s innovative program provides a holistic
nyakaschool.org approach to the community development, educa-
tion, and healthcare of AIDS orphans by empower-
ing both grandmothers and their grandchildren.

Nyaka is working in rural Uganda to end systemic deprivation, poverty,
and hunger through community development, education, and health-
care.

Epic Impact Factors. Outlook 2017

87

9. Key Findings

NGOs and Epic’s analysis shows that organ- Organizations with boards
social izations that focus on increasing consisting exclusively of “pay-
enterprises’ board engagement consist- to-play” donors commonly lack
boards can ently demonstrate enhanced the diversity and engagement
provide key governance, improved access needed to ensure proper gov-
oversight, to technical expertise, and ernance of the organizations.
fundraising, greater fundraising results. Still, Organizations with weaker or
and technical our experience has revealed less active boards tend to have
support that many organizations strug- less rigorous policies and proc-
gle to maintain an engaged esses, or lack them altogether, in
group of board members who key areas such as child protec-
can deliver this essential sup- tion and finance (see figures
port regardless of the size of the below).
organization or board. Board
composition and structure varies
dramatically among reviewed
organizations. Overall, however,
the average board consisted of
8.4 board members. The major
indicator of board quality we
identified was not a specific
number of board members, but
rather the implementation of
specific policies to track and
increase board members en-
gagement, as well as to remove
them from the board if needed.

Epic Impact Factors. Outlook 2017

Tip For NGOs Tip For Donors

Develop processes that strength- Only commit to joining the board
en board engagement in order to if the organization can articulate
better leverage directors’ diverse why your specific background
backgrounds, experiences, and and experience are needed and
networks. what are the targets for your con-
tribution to the organization.

The Data

47% of organizations working with children
and youth do not have a child protection policy
91.72% of organizations reviewed have a Board
of Directors. Average size: 8 board members.

How many board members do NGOs What percent of NGOs have audited
and social enterprises have? financial statements in different budget
categories?

200 % % 100 % %
180 % 90 %
160 % 1 4 7 10 13 16 19 22 25 30 35 44 65 80 % 88 89
140 % Number of Board Members 70 % 78
120 % 60 %
100 % 50 % 54
40 %
80 % 30 % 36
60 % 20 %
40 % 10 % 19
20 % 0%

0%

$2,$550$001$,0,1000000,,0000+-000$-$001$1--200<,$,$,$51500100000000000,,,,,,000000000000000000

1 2016 Data Submitted Applicants (n = 1328) 2 2016 Data Submitted Applications (NGOs; n = 1223)

89



91

Good practices

Turma do Bem TdB created the largest volunteer network of spe-
(TdB) cialized dental professionals in the world consist-
Brazil ing of 16,000 volunteers offering free dental and
oral treatment to almost 58,000 beneficiaries. TdB
turmadobem.org.br leverages the professionalism of their volunteers
to influence public policy and to mobilize public
opinion.

TdB offers free dental services to low-income youth and promotes soci-
ety’s understanding about oral health issues.

Epic Impact Factors. Outlook 2017

Schistoso- SCI is a global leader in the provision of deworm-
miasis Control ing treatments for parasitic diseases and they are
Initiative recognized across the world for their high levels
(SCI) of expertise. SCI’s Advisory Board works closely
Uganda with their Management Board to provide strategic
advice to ensure that deworming treatments are
imperial.ac.uk/schistosomiasis- cost-effective and that they target the populations
control-initiative most at risk of infections.

SCI works to improve the health and development of the world’s poor-
est populations by helping governments treat schistosomiasis, one of
the most common neglected tropical diseases.

93

Good practices

M’Lop Tapang M’Lop Tapang recently decided to seek the
Cambodia NGO Governance & Professional Practice (GPP)
certification from the Cooperation Committee
mloptapang.org for Cambodia for standards of good practice,
accountability, and transparency.

M’Lop Tapang strives to provide a safe haven for the street children of
Sihanoukville, offering care and support to any child at risk.

Epic Impact Factors. Outlook 2017

95

10. Key Findings

NGOs and The fluency with which civic These intermediaries play a key
social leaders can collaborate with role as catalytic partners and
enterprises international agencies, gov- capacity development agents
can foster ernment, and multilateral from which top performing
systemic institutions is key to determine organizations take root. Interme-
change whether they can truly effect diary organizations have been
but require change at scale. Still, Epic’s key in fostering the dynamism
conducive analysis shows that many NGOs of social purpose organizations
local and operate in a vacuum, discon- in cities like London (Impetus),
national nected from government and Mumbai (Dasra), Bangkok
ecosystems institutions. What is required is a (Change Fusion) and New York
context in which governments (Robin Hood Foundation).
deliberately foster philanthropic
ecosystems that are conducive
to social innovation by support-
ing multi-sector partnerships,
enhancing relevant regulations,
and developing new sources of
public and private funding. A re-
markable driver of such ecosys-
tems is the emergence of social
intermediaries such as venture
philanthropy funds, capacity
development agencies, and
government innovation funds.

Epic Impact Factors. Outlook 2017

Tip For NGOs Tip For Donors

Identify opportunities to partner Provide funding to outcomes-
with social intermediaries and focused social intermediaries that
NGO networks to amplify the can advance ecosystems and
impact of your work and build a build capacity to help you foster
coalition of partners around your innovation across sectors and
organization. geographies.

The Data

41% of NGOs have a partnership agreement/
Memorandum of Understanding with Government
28% of NGOs have a partnership agreement/
Memorandum of Understanding with International
Agencies

What is the strength of the relationship NGOs and social enterprises have with each
of the types of partnerships, from “None Existent” to a “Partnership Agreement/MOU”?

100 % 28 35 19 197 %
90 %
80 % 41 50 28 31
70 %
60 % 22 None Existent
50 % 26 Infrenquent Meetings/Interaction
40 %
30 % 23 30 37 29 30 Frequent Meetings/Interaction
20 % 25 Partnership Agreement/M.O.U
10 %
0% 18
26
15 11 9 24 22
4

IntAegrennatciioesnal 1 2016 Data Submitted Applicants (n = 1276; 1252; 1302; 1294; 1258; 1259)
NRoesneSNPraoorLocfnicioCGthaPcloroINavloEnfmCse/ienttsropitNrtwaeaamuprtntoiiineroprrokeoindstssa/nntseoasrl/e
97



99

Good practices

The Brilliant In just five years, The Brilliant Club has taken
Club significant steps to mobilise the PhD community
UK to support university access for disadvantaged
pupils. It was only able to build partnerships
thebrilliantclub.org with 20 leading universities and 300 schools
because of the education sector’s openness to
social enterprise. This openness was a key factor
in the organization winning multi-million pound
Government contracts for programme delivery.

The Brilliant Club expands access to highly selective universities for stu-
dents from underrepresented groups, by mobilizing researchers to bring
academic expertise into state schools.

Epic Impact Factors. Outlook 2017