Common Approach is supporting the development of flexible, shareable impact measurement that is focused on social purpose organizations (SPOs). Centering the needs and priorities of SPOs, and empowering them to develop indicators that align best with their work (no standard indicators here!) will result in better impact measurement data for those funding and investing in this work. This work will be achieved through the implementation of the Common Impact Data Standard and Common Framework.
Common Approach’s Standards are among several SFF initiatives that support impact measurement and management practices within the social finance market. Learn more here.
The Common Impact Data Standard
For the first ten years of the Social Finance Fund, Common Approach will support all participants in implementing the Common Impact Data Standard so it’s easier to measure and share the impact of their work in this program.
The Data Standard does not contain fixed indicators, and it does not tell organizations or individuals what data to collect. Instead, it provides a standardized way to structure and represent impact data, enabling the exchange of impact information between aligned tools across the ecosystem.
The Data Standard is accessible through the use of aligned tools that have data structures that follow the Data Standard. This enables them to import and export impact information in a consistent way. We are working to align software used in the finance ecosystem with the Data Standard. We also support SPOs and SFIs in aligning their exports from their current tools so their data can be easily shared with their SFI or wholesaler.
It’s important to note that the Common Approach standards provide guidance on how organizations can gather and share their own stored data. At no point in the usage of any of our Standards does Common Approach collect or hold this data.
The Common Framework
The Common Impact Data Standard allows users to build their flexible framework using the principles of the Common Framework. Upon request, Common Approach can assist SFIs with aggregating the diverse indicators and impact metrics they receive from their portfolios into themes that matter most to them. The Common Framework can then display the total impact of the investor’s portfolio in tables and visualizations. This ensures that each fund manager can represent their impact in a way that aligns with their strategy—without requiring portfolio companies to standardize indicators.
