Social Finance Fund resources for social finance intermediaries (SFIs)
Social finance intermediaries (SFIs) that receive investment through the Government of Canada’s Social Finance Fund (SFF) will be required to collect and report data about the social purpose organizations (SPOs) they invest in.
Some of this data will be collected and shared using Common Approach’s Common Impact Data Standard. The Common Framework will help SFIs and their wholesalers aggregate data from multiple investees without requiring the investees to use common indicators.
All Social Finance Fund participants (SFIs and SPOs) will need to use the Data Standard to report their impact. Organizations “use” the Data Standard by using an aligned software or data utility for data collection and reporting.
Common Approach is here to help! There are various ways to meet the data requirements of the SFF—Common Approach will provide guidance to SFIs throughout the process. We are here to help SFIs collect the required data from their investees, report it to their wholesalers, and make sense of it for their own impact measurement.
The first things you need to know (even if you have not yet signed with a wholesaler!)
SFI who receive investment through the Social Finance Fund will need to understand what will be required of them and the SPOs they support in terms of impact data collection and reporting.
If you have applied, are considering applying, or have already signed with a funder, these resources will get you started:
- READ “SOCIAL FINANCE FUND IMPACT DATA COLLECTION FOR SOCIAL FINANCE INTERMEDIARIES.” Social finance intermediaries (SFIs) that receive investment will be required to collect data about the social purpose organizations (SPOs) they invest in. This document outlines the data collection strategy, which aims to benefit both SFIs and the SPOs they support.
- WATCH “DATA COLLECTION AND THE COMMON IMPACT DATA STANDARD.” This recording of a Common Approach info session is a review of “SOCIAL FINANCE FUND IMPACT DATA COLLECTION FOR SOCIAL FINANCE INTERMEDIARIES” and an introduction to the Common Impact Data Standard for social finance intermediaries (SFIs).
- REVIEW “HOW DATA WILL FLOW FROM SPOs to SFIs TO WHOLESALERS.” This flowchart illustrates the recommended timeline for sharing required data of the SFF. Here, you’ll be able to see what data SFIs need to collect from the SPOs they invest in, and how that data will need to be reported back to wholesalers.
Once you have signed the agreement with your wholesaler, we suggest your next step be to:
- BOOK A MEETING with Laurentia Perrin, Lead, Impact Measurement for Portfolio Managers at Common Approach.
Make sure you have the right software or data utility for data collection and reporting
SFIs will be required to use the Common Impact Data Standard. All you need to do to “use” the Data Standard is to use a data utility or software that is aligned. Common Approach is here to help you ensure you have a tool or software that meets your needs and SFF requirements. These resources will help:
- For SFIs planning to obtain new software or data utility,
- READ “A GUIDE FOR SFIS WHO NEED NEW SOFTWARE.” The easiest way to use the Common Impact Data Standard is to use an aligned software. If you are planning to obtain new software to meet this requirement, this document will help you navigate this process.
- WATCH “SOFTWARE ACQUISITION FOR SOCIAL FINANCE INTERMEDIARIES”. This previously recorded info session reviews the software acquisition process for Social Finance Intermediaries (SFIs).
- REVIEW “SOFTWARE ALIGNED WITH THE COMMON IMPACT DATA STANDARD.” Learn more about the softwares that are already aligned or in the process of aligning, with the Data Standard, including features and approximate cost.
- For SFIs who are already using a software to collect data,
- READ “HOW TO ENSURE YOUR SOFTWARE MEETS SFF REQUIREMENTS. This document will walk you through how to work with your software provider or administrator to ensure the tool you are using meets SFF requirements.
WATCH “SOFTWARE ACQUISITION FOR SOCIAL FINANCE INTERMEDIARIES”. This previously recorded info session reviews the software acquisition process for Social Finance Intermediaries (SFIs), and also covers how to get a software solution you prefer or are already using to align.
The benefits of widespread use of the Common Impact Data Standard include…
…reducing reporting burdens. The SPOs you invest in can log data in one place rather than re-entering information into multiple forms or logging into multiple reporting platforms.
…allowing for flexibility. SPOs will have the flexibility to choose the measurement approach (collection method, tools, indicator selection) most tailored to their needs. This will improve the quality of data reported back to funders and investors.
…helping with capacity-building. Many aligned softwares guide the user through data collection, and some support the development of a theory of change and choosing indicators. Rather than a one-off reporting tool, using aligned software will help refine and improve the impact measurement practices of those you invest in, meaning better data for everyone.
…creating opportunities for better impact. With all their data in one place—their own software rather than an investors’ portal—SPOs will be able to analyze their impact more easily and accurately, learn more from their data, and make informed decisions for improving their impact and the impact of your investments.
Working with the SPOs you support to collect and share data efficiently
It will be important to work closely with the SPOs you invest in, to ensure they understand the data collection and reporting requirements of the Social Finance Fund. Common Approach has tools to help you communicate these requirements. We also recommend using the Common Foundations as a tool during your selection process. It ensures that the SPO has the capability to submit the needed data, or can help identify gaps in the impact measurement process that can be address through capacity-building and other support.
- SHARE “AN INTRODUCTORY GUIDE TO SOCIAL FINANCE FUND IMPACT REPORTING FOR SOCIAL PURPOSE ORGANIZATION (SPO) INVESTEES” with the SPOs you are investing in. This document will provide the SPO with an overview of the data collection requirements, and what they need to do to ensure they meet them.
- REQUEST YOUR SPO COMPLETES “THE COMMON FOUNDATIONS SELF-ASSESSMENT”. This tool will help confirm the SPO meets the minimum standard for “good enough” impact measurement. You can ask the SPO to complete it and share their results, or you can walk through it together as an exercise. More on this can be found in the AN INTRODUCTORY GUIDE TO SOCIAL FINANCE FUND IMPACT REPORTING FOR SPO INVESTEES.
- IMPLEMENT THIS LANGUAGE INTO YOUR SIDE LETTERS AND OTHER AGREEMENTS: “A GUIDE FOR WRITTEN AGREEMENTS WITH SOCIAL PURPOSE ORGANIZATIONS.” Here you will find a checklist and sample language to facilitate collecting the data required by the SFF from SPOs. We recommend including reporting requirements in your written agreements to ensure transparency and effective communication.
- ENCOURAGE YOUR SPOS TO BOOK A MEETING with Mikayla Loyer, Manager, Business Integration at Common Approach.
Organizing your data for your own impact management
- WATCH “AGGREGATING PORTFOLIO INDICATORS USING A FLEXIBLE FRAMEWORK.” In this previously recorded info session, we review how the principles of the Common Framework will allow you to roll up dissimilar impact metrics from across their portfolios into an aggregated view.
ONCE YOU HAVE SOME DATA, BOOK A MEETING with Laurentia Perrin, Lead, Impact Measurement for Portfolio Managers at Common Approach. If you already have data from two or three SPOs you have invested in and would like support from Common Approach in aggregating and analyzing your portfolio, we are here to help!
Additional background materials and resources
- Common Impact Data Standard (v.21) Basic Tier Definitions: A mini-glossary of the terms used in the Data Standard, to help funders and investees better understand what data an aligned software can store and report at the Basic Tier.
- The Social Finance Fund high-level process map: An overview of how the data collection requirements are being developed and rolled out across participants in the Social Finance Fund.
- What Common Approach adds to the IMM ecosystem: Learn more about what Common Approach is and is not, related to the impact measurement and management (IMM) ecosystem.
- Introduction to the Common Impact Data Standard: This is a non-technical overview of the Data Standard, its benefits, and what you need to know to “use” it as a social purpose organization.
- Coursera course—Impact measurement and management for the SDGs: Developed with UNDP SDG Impact and CASE at Duke University, this free course covers how to improve your organization’s practice of impact measurement and management and align your ESG or impact activities and reporting with emerging global standards.
