Sustainable Development Goal 3 of good health and well-being seeks to ensure healthy lives and promote well-being for all at all ages. Our team explored this goal to determine metrics that give social impact investors the greatest opportunity to invest in an organization that most closely addresses their social impact goals. A case study of five non-governmental organizations (NGOs) helped determine sixteen metrics that were the most important for organizations to report to increase their investments. The five NGOs; International Medical Corps, Mercy Ships, Partners in Health, Save the Children, and Project Hope were chosen because of their different impact methodologies.

After doing evaluations on metrics of each organization with reference to IRIS+ metrics, it’s clear that several impact investors expect a return on their investment, thus leading to the conclusion that many of the most important metrics would be financially based. For instance, metrics such as CEO salary versus the salary of the average employee help to visualize how money flows within these organizations.

The first metric is vulnerable populations reached. This metric shows exactly who the social enterprise is reaching out to, and who their work is aiming to assist. Investors can determine whether or not the population in need aligns with their own investment goals and passions for their social impact. The next metric is, how many lives are impacted? this metric gives investors a numerical look into how many lives have been impacted by the organization in question, basically the number of people receiving aid from the NGO. It’s important to look at the lives impacted per year, as a newer NGO may have impacted fewer people in their beginning stages but would ultimately be a very effective player in the social impact field as they mature.

One of the most important metrics to look at is the percentage of donations going to the cause. Presenting the percentage of donations going directly to the group’s cause up front removes any surprises with regards to operating costs versus the amount of money donated to the mission. The percentage of donations going to operating costs is also an important metric that shows the percentage of the organization’s funding that goes towards internal operating costs. This helps to create transparency and trust from impact investors.

The next metric would be how many professionals are trained? Training and teaching of individuals can lead to a greater impact throughout generations. This metric reflects a tangible impact that an NGO is providing concerning increasing human capital in a vulnerable population, beginning a ripple effect geared to opening an employment industry. The caregivers employed metric allows us to measure the scale of the NGOs’ operations. The more the caregivers employed, the more clarity of an NGOs significant contribution to its community. It shows that the organization is making available a better quality of care for those who may need it. 

The next metric is how far does a dollar go within each NGO? This metric is reflective of where the organization is working and inflation within that area. It is an important statistic to note for investors who may not have large amounts of money to donate but are still looking to make a larger impact. Some NGOs get their dollar multiplied by sponsors who match their donations. So if an investor gives a company $10 and it's multiplied by 30x, the organization receives an additional $290 from sponsors.

What is the salary of the CEO? This metric is important very important. It is necessary to note whether or not the founders are taking an enormous salary for themselves that is mostly, if not entirely, funded by donations. Investors deserve to know how much of their donation may go straight to an individual’s pocket. This opens room for transparency and more ethical financial

practices that can increase an organization’s social impact. 

The next metric is what is the salary of the average employee? This metric would need to be judged alongside the salary of the CEO as well as operating costs to fully understand the scope of financial practices within the organization. Many NGOs operate on fairly low salaries that are tax deductible and not meant to be an individual’s sole source of income. It’s also important to look at the number of employees metric, which shows the size of the NGO and the impact they are making. This metric should be compared with the number of volunteers an organization has to judge the distribution of paid work to volunteer work.

The other metric is the number of volunteers. An extremely large volunteer base could signal the fact that the organization is putting most of its money into the cause and can recruit volunteers to make a larger impact without the incentive of a salary. It's also important to have social media presence metrics. While social media presence is not the most vital judge of an organization’s character or credibility, it gives us good insight into the way the organization may interact with individuals in real life and how they curate their image. Are they recognized or respected internationally? The impact that many of these NGOs have is largely based on countries abroad, and their international recognition is a large signal of whether their impact is effective or not.

Are they first responders to global events? This metric is a significant sign of an NGO’s efficacy and ability to give aid to especially vulnerable populations when they need it most. Organizations that are certified as first responders display special effectiveness and responsibility to work under extreme pressure, with little room for error. Who/what are their corporate sponsors? This metric is important because corporations are often self-serving and donate large amounts of their money to organizations that may ultimately serve their interests. It is vital to vet not only the organization itself but those who support them.

The final metric is any unique services performed? This metric should not be seen as a deal breaker in whether or not an investor decides to donate, for NGOs can make a very large impact without a unique service. Rather, it should be seen as an enrichment to those organizations that have received special recognition or are acting within a niche sector that has not yet been explored. NGOs need to be as transparent as possible for impact investors to choose the right organization for their personal impact goals.