Why evidence is important for achieving impact
To truly understand your impact, you need data to show that the particular programme or intervention you’re funding works the way it was supposed to, and makes a positive difference to beneficiaries. This can be obtained by finding the counterfactual – what would have happened were it not for the particular programme or intervention – as well as other methods detailed below. You also need to be able to tell whether any results have been sustained, bringing long-term benefits for the beneficiaries.
The only real way to know this? Hard evidence.
If a charity can provide robust evaluation data to show that their programme is working as designed, or that it’s following a well-evidenced approach, you know they’re likely to achieve a good impact. On the other side, a lack of evidence can lead to programmes that are ineffective or, at worst, even cause harm. There are some situations, however, where evidence is harder to come by or simply won’t warrant an evidence base – such as brand new interventions, systems change or campaigning work – which we explore in our Evidence vs impact: questioning the use of evidence article.
But solid evidence can help charities – and you – understand what works, for whom and why, so that they can realise their missions. Collecting evidence about their programmes helps charities make better decisions, become better equipped to deal with the complexities of social issues, improve efficiencies and resource management, and ultimately learn from experiences to improve in the future.
Evidence doesn’t have to accompany a specific programme, it could be that external data is used to inform the approach of a programme. For example, numerous studies have shown that cash grants are more effective for poverty reduction than in-kind payments, despite the popularity of in-kind payments among some donors. Charities can therefore use this external evidence to inform their programmes and use cash grants.
Looking at an organisation’s external evidence base is always important when deciding which organisation to support, particularly if they lack their own. When they don’t have in-house or external monitoring and evaluation processes in place, donors should find out more about how an organisation informs their work and how their programmes have been set up. If they don’t have the relevant data but you know that they are following an evidence-based approach, such as the cash grants example above, then you can be somewhat confident that the approach is one demonstrated to be impactful.