Optimizing Cost-Effectiveness for Impact-Driven Charities

Optimizing Cost-Effectiveness for Impact-Driven Charities

Sub Editor

IPA's Right-Fit Evidence Unit partnered with Charity Entrepreneurship to develop a methodology for estimating the cost-effectiveness of their incubated charities to inform their strategic decision-making. Considering the diversity of their charity models, IPA built a flexible yet standardized estimation approach, developed through three case study applications, and suggested options for use in their decision-making goals. 

Charity Entrepreneurship incubates impact-driven organizations across diverse sectors, from animal welfare to global health and development. Given the complexity of evaluating organizations with varying stakeholders, approaches, and impact models, they needed to develop a cost-effectiveness estimation methodology to help them assess the overall cost-effectiveness of their incubation program and provide data-driven recommendations to guide charities in making strategic program decisions. 

IPA's Right-Fit Evidence Unit designed and tested an impact estimation methodology for Charity Entrepreneurship, focusing on cost-effectiveness and strategic insights. IPA developed and refined an impact estimation methodology tailored to Charity Entrepreneurship’s decision-making needs. The approach included sensitivity analysis tools, cross-sector comparison options, and iterative improvements based on testing with three charities. IPA also estimated future implementation costs and facilitated a workshop with leadership to discuss findings and best-use scenarios, particularly in low-evidence contexts. 

IPA's contributions enabled Charity Entrepreneurship to better understand resource needs, refine its approach to cost-effectiveness estimation, and inform strategic decisions. The methodology also has the potential to highlight key drivers of impact, providing actionable insights into optimizing cost-effectiveness.


Funding Partner

 

Charity Entrepreneurship