Cover image of the article, Philanthropy by the Numbers: Measurable Impact and Its Civic Discontents, published in The Hedgehog Review

Deciding how to prioritize investments remains a key challenge in philanthropy. Should funding decisions be based on strategic alignment, data and evidence, values, or a combination of all three? In his piece, Philanthropy by the Numbers: Measurable Impact and Its Civic Discontents, Aaron Horvath examines the shift toward quantification in philanthropy, analyzing how the growing focus on measurable results is changing how charitable giving works and prompting discussions about the implications of data-driven approaches on community relationships and civic engagement.

Horvath begins by discussing the rise of data-driven philanthropy, highlighting tools like MyGoodness, an online game that introduces players to the concept of “effective altruism.” Effective altruism is a philosophy that encourages using evidence and reasoning to determine how to help others most effectively with the resources available. The game quantifies charitable giving into calculations where each dollar spent aims to save the greatest number of lives. While this approach prioritizes While this approach prioritizes data considered objective—such as quantifiable metrics like lives saved or cost-effectiveness ratios—in decision-making, Horvath highlights that it may not fully account for the complexity of social challenges or the diverse needs of communities. Furthermore, while a data-driven approach can offer insight into allocating resources, it may overlook the importance of fostering relationships and collaboration in addressing broader social issues.

Over the past three decades, philanthropy’s emphasis on measurable impact has grown, driven by the influence of prominent philanthropists, advancements in evaluation methods such as Social Return on Investment (SROI) and Quality-Adjusted Life Years (QALYs), and a cultural shift toward data-focused decision-making. These methods provide structured frameworks to assess specific outcomes of philanthropic initiatives, such as improvements in health or reductions in poverty. However, Horvath notes that while these metrics help quantify certain aspects of impact, they may unintentionally deprioritize broader objectives that are harder to measure, such as fostering meaningful community relationships or supporting advocacy for systemic change.

Horvath contextualizes this trend within broader societal shifts, including declining civic engagement, growing distrust in nonprofit organizations, and the professionalization of the philanthropic sector. He notes that while data-driven approaches can provide a sense of accountability, they may also reduce philanthropy to a series of transactions, focusing on measurable outcomes rather than fostering deeper community relationships or addressing underlying societal issues.

Below we provide three takeaways from the piece relevant for the DATA4Philanthropy Network:

• Balancing Metrics and Humanity: While metrics can enhance accountability, they should complement rather than replace the human elements of philanthropy. This ensures a balance between quantifiable outcomes and the human connections essential to fostering trust, collaboration, and shared responsibility in civic engagement.

• Rethinking Impact Assessments: The focus on measurable impact can sideline critical, less tangible outcomes. Adopting broader evaluation frameworks can help capture the complexity of societal change.

• Promoting Inclusive Civic Participation: Creating spaces for inclusive, participatory approaches that value lived experiences alongside data can empower grassroots efforts and community voices.

The full article can be found here.

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