Measuring social impact is “essential” for sustainable not for profit organisations which want to stay ahead, according to the CEO of Lort Smith which is believed to be one of the first organisations which works with animals to formally assess its broader social impact.
The organisation, which operates as the busiest not-for-profit animal hospital in Australia, has worked with consultants Ernst & Young (EY) to quantify the value of the social benefit it delivered to the Melbourne community in 2016 as being worth $10.1 million.
EY analysed Lort Smith’s work in 2016 using its Total Value Framework (TVF) methodology, which allows organisations to explicitly identify the different outcomes created for different stakeholders and place a financial value on them.
The report found the services analysed by EY were almost entirely funded through donations, meaning for every $1 donated, Lort Smith was able to return more than $3 worth of social impact.
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