“What’s Our Impact?” A Simple Framework for Answering This Question

When funders ask about impact, where do you start? This simple framework breaks down the concept into understandable components any charity can apply. Move from panic to clarity with practical structure.

“So, what’s your impact?”

A funder asks this question in a meeting. Your mind races. Where do you even start? Do they want numbers? Stories? A full evaluation report? Should you talk about the people you work with, the activities you deliver, or the changes you’re trying to create?

You stumble through an answer about how many people you’ve helped and what services you provide, knowing even as you speak that you’re not really answering the question. Afterwards, you feel frustrated. You know your work matters. You see it every day. But somehow, when someone asks directly about impact, the words don’t come easily.

If this sounds familiar, you’re not alone. “What’s our impact?” is simultaneously the most important question in the third sector and the one that causes the most confusion. Not because organisations don’t create impact, but because “impact” is an enormous concept and most of us haven’t been taught how to break it down into something manageable.

Let me give you a framework that makes this question answerable. Not just for funders, but for trustees, staff, and yourselves.

Why “Impact” Feels So Overwhelming

Before we get to the framework, let’s acknowledge why this question is so difficult to answer:

The word “impact” means different things to different people

To some, impact means long-term, transformational change. To others, it means any positive difference. Some use it interchangeably with “outcomes.” Others see it as the ultimate goal that sits beyond outcomes. This linguistic confusion makes the question feel slippery before you even start.

Impact unfolds over time

The difference your work makes doesn’t happen instantly or all at once. A person experiencing homelessness might first gain safe accommodation (immediate outcome), then rebuild family relationships (medium-term outcome), then sustain independent living (long-term outcome). Which bit is the “impact”? All of it? Just the end point?

Impact is influenced by many factors

You’re rarely the only influence on someone’s life. A young person who gains confidence through your mentoring programme is also influenced by their family, school, friends, and life circumstances. How do you describe your impact when it’s tangled up with everything else?

Impact happens at different levels

Are we talking about impact on individuals? On communities? On systems? On policy? A food bank creates impact at all these levels simultaneously, but they’re very different stories.

No wonder “What’s our impact?” feels impossibly broad. You’re being asked to summarise complex, multilayered change influenced by many factors, unfolding over time, using a term that means different things to different people.

But you can answer it. You just need a framework to structure your thinking.

The Simple Impact Framework

Here’s a way to think about impact that makes it manageable. Impact is the answer to four connected questions:

Who do we exist to help? (Your target group)
What problem are they facing? (The issue you’re addressing)
What changes do we help create? (Your outcomes and impact)
How do we know? (Your evidence)

That’s it. Four questions. When you can answer these clearly and specifically, you can articulate your impact to anyone.

Let me show you how it works.

Question 1: Who Do We Exist to Help?

This sounds simple, but many organisations answer it vaguely. “We support vulnerable people.” “We work with families in need.” “We serve the local community.”

These aren’t wrong, but they’re not specific enough to build an impact narrative around.

Get specific about:

Your target population’s characteristics:

Age, location, circumstances
Specific challenges or needs they face
What makes them “your” people rather than someone else’s

For example:

Vague: “We support people with mental health issues”

Specific: “We support adults in Glasgow who are experiencing anxiety or depression and are waiting for NHS treatment or have been discharged but need ongoing peer support”

Vague: “We work with disadvantaged young people”

Specific: “We work with care leavers aged 16-25 in Tower Hamlets who are at risk of homelessness or unemployment”

Notice how specificity doesn’t limit you, it clarifies. It helps people understand exactly who benefits from your work and why they need you.

A warning about “everyone”

If your answer is “we’re here for anyone who needs us,” you probably haven’t thought through your impact clearly enough. Organisations that try to help everyone often end up helping no one particularly well. Even if you genuinely serve a broad group, you can still be specific about the common characteristics or needs they share.

Question 2: What Problem Are They Facing?

This is about the issue you exist to address. Not your solutions (we’ll get there), but the problem itself.

Good problem statements:

Explain what’s difficult or harmful about the current situation
Are specific enough to be meaningful
Connect to your target group’s real experience

For example:

A debt advice charity: “Our clients are trapped in unmanageable debt, facing constant worry about money, bailiff action, and difficult choices between heating and eating. Without support, they don’t know where to turn or how to break the cycle.”

A community gardening project: “In our neighbourhood, residents have limited access to green space and fresh food. Many people feel isolated, lacking connection to neighbours or opportunities to learn new skills and contribute to their community.”

A young carers support group: “Young people caring for family members miss out on education and social opportunities, experience stress and exhaustion, and often feel invisible because their caring responsibilities aren’t recognised or understood.”

Notice how these problem statements aren’t just listing facts. They’re painting a picture of difficulty, harm, or unmet need that explains why your organisation matters.

The “so what?” test applies here too

If someone could read your problem statement and think “that doesn’t sound too bad,” you haven’t captured the real issue. The problem should make people think “yes, that needs addressing.”

Question 3: What Changes Do We Help Create?

This is where we move from problem to solution, but not by describing your activities. By describing the change that happens as a result of your activities.

Think about change at different levels:

Individual level

What’s different for the person?

New knowledge, skills, or awareness
Changed attitudes or increased confidence
Different behaviours or choices
Improved circumstances or wellbeing

Relationship level

What’s different in how people relate to others?

Stronger family relationships
New friendships or peer support
Better engagement with services
Reduced isolation

Community level

What’s different in the wider community?

Improved spaces or facilities
Stronger community connections
Changed attitudes or reduced stigma
Increased local capacity

Systems level

What’s different in how systems operate?

Policy changes
Service improvements
Shifted practices in other organisations
Changed public discourse

You don’t need impact at every level. But being clear about which levels you’re working at helps articulate your impact precisely.

Practical example: A parenting programme

Individual level: Parents understand child development better, feel more confident, and use positive discipline strategies

Relationship level: Parent-child relationships improve, with less conflict and more positive interaction

Community level: Less stigma about asking for parenting support; peer support networks form

Systems level: (This programme probably isn’t working at systems level, and that’s fine)

Being clear about your levels of change means you can target your measurement appropriately. If you’re primarily creating individual-level change, you don’t need to prove community-level impact.

Question 4: How Do We Know?

This is where evidence comes in. Not just data you’ve collected, but the full range of ways you know your work is creating change.

Different types of “knowing”:

Direct participant feedback

“Young people tell us they feel more confident after the programme”

What data backs this up: Before-and-after surveys, exit interviews, case studies

Observed change

“We see participants progress from withdrawn and quiet to actively contributing in group settings”

What data backs this up: Staff observation notes, attendance patterns, photos/videos showing engagement

Measured outcomes

“73% of clients successfully reduced their debt within six months”

What data backs this up: Case file data tracking debt levels over time

Third-party validation

“Schools report improved attendance and behaviour for children whose parents completed our programme”

What data backs this up: School data, teacher feedback, external evaluation

Sustained engagement

“82% of people who complete our programme stay connected through our alumni network”

What data backs this up: Database records of ongoing contact and participation

Notice how “how we know” isn’t just about formal evaluation. It’s about the full evidence base including what you observe, what people tell you, what other services report, and what data shows.

Be honest about your evidence base. If you have strong qualitative evidence but limited quantitative data, say so. If you have promising short-term evidence but don’t yet know about long-term impact, acknowledge it.

Credibility comes from transparency, not from claiming to know more than you do.

Putting It All Together

Let’s see how this framework works in practice with three different organisations:

Example 1: A mental health peer support group

Who? Adults in our local area living with anxiety or depression who need ongoing support beyond clinical treatment

What problem? They experience isolation, feel their struggles aren’t understood by others, and lack practical coping strategies for daily life. NHS services are overstretched, with long waits and limited session numbers.

What changes? Participants feel less alone, develop practical techniques for managing symptoms, build supportive friendships, and experience improved wellbeing. Some go on to become peer volunteers themselves.

How do we know? 85% of regular attendees report reduced feelings of isolation (wellbeing survey). We observe people progressing from quiet attendance to actively supporting others. GP surgeries report that patients engaged with our group require fewer crisis appointments. Ten former participants now volunteer as facilitators.

Example 2: A homework club

Who? Primary school children aged 7-11 in our estate whose families lack space, resources, or confidence to support homework at home

What problem? These children fall behind academically because they don’t have a quiet place to study, access to books and internet, or adult support with learning. This compounds existing disadvantage and affects their confidence and future opportunities.

What changes? Children complete homework regularly, improve their reading and maths skills, gain confidence in their abilities, and develop positive attitudes toward learning. Parents feel less stressed about supporting homework.

How do we know? School data shows 78% of regular attendees improved their reading age by at least 6 months in one term. Teachers report better homework completion and increased classroom confidence. Children tell us they enjoy coming and feel “clever.” Parents say homework time at home is now calmer.

Example 3: A community garden

Who? Residents in a deprived urban neighbourhood with limited green space, particularly people experiencing isolation, unemployment, or poor mental health

What problem? The neighbourhood has lost community facilities and local people rarely interact. Residents feel disconnected from nature and neighbours, lack opportunities to learn new skills or contribute, and have limited access to fresh food or outdoor activity.

What changes? Neglected land is transformed into productive, beautiful green space. Residents develop gardening and teamwork skills. People form friendships and feel more connected to their neighbourhood. Regular volunteers report improved mental wellbeing. The community has fresh, affordable produce.

How do we know? Before-and-after photos show dramatic environmental change. Volunteer registration data shows 40 regular participants (up from 3 at launch). Wellbeing surveys show 82% of regular volunteers report reduced stress and increased happiness. The garden now produces 200kg of vegetables annually, distributed through community cafes. Local councillors cite it as an exemplar of community-led regeneration.

See how the framework gives structure? Each organisation is very different, but the four questions make their impact clear and compelling.

Common Mistakes to Avoid

As you apply this framework, watch out for these traps:

Mistake 1: Describing your activities instead of change

“Our impact is that we deliver weekly support groups” – No, that’s what you do. The impact is what changes for people because of those groups.

Mistake 2: Being too vague

“We improve lives” – Everyone says this. What specifically improves? For whom? How much?

Mistake 3: Overstating what you can claim

“We end homelessness in our city” – Really? All of it? Just you? Be honest about your contribution to wider change rather than claiming sole responsibility for solving complex problems.

Mistake 4: Ignoring the evidence question

Communicating beautiful impact statements is worthless if you can’t back them up. Always connect claims to evidence, even if that evidence is imperfect.

Mistake 5: Making it too complicated

If you can’t explain your impact in a few clear sentences, you’ve overcomplicated it. The framework should simplify, not add layers of jargon.

Using This Framework Practically

Once you’ve worked through the four questions, you have the foundation for:

Funding applications

The framework gives you the structure for most application forms. “Who we work with” = beneficiary description. “What problem” = needs analysis. “What changes” = intended outcomes. “How we know” = evaluation approach.

Trustee reports

Use the framework to structure impact updates: “This quarter we worked with [who], addressing [problem]. We created [changes], and we know this because [evidence].”

Website content

Your About Us and Impact pages can follow this structure, making your work immediately clear to visitors.

Conversations with funders, partners, or donors

When someone asks “what’s your impact?”, use the framework to give a structured, compelling answer without rambling.

Strategic planning

The framework helps you check whether you’re clear about purpose (who and what problem) and realistic about change you can create (what changes and how you’ll know).

Developing Your Impact Statement

Want to turn this framework into a concise impact statement? Try this format:

“We work with [who] who face [problem]. Through our work, [changes they experience]. We know this because [key evidence].”

For example:

“We work with young people leaving care who face homelessness and unemployment. Through our mentoring and practical support, they secure stable housing, develop independent living skills, and move into education or work. We know this because 78% of young people we support are still in stable accommodation one year later, and 64% are in education, training or employment (compared to 41% nationally for care leavers).”

That’s 70 words. It answers “what’s your impact?” clearly and compellingly.

Try writing your own. Your first draft will probably be too long or too vague. That’s fine. Refine it until it’s specific, honest, and grounded in evidence.

When You Don’t Know the Answer Yet

What if you work through this framework and realise you don’t have good answers to some questions?

That’s valuable information. It tells you where to focus your thinking and evaluation efforts.

If you can’t clearly answer “who?” – You may be trying to serve too broad a group, or you haven’t properly understood your target population.

If you can’t clearly answer “what problem?” – You may be activity-led rather than needs-led. Go back to understanding the issue you exist to address.

If you can’t clearly answer “what changes?” – You need to develop a theory of change. What difference are you trying to make? For whom? In what timeframe?

If you can’t clearly answer “how do we know?” – You need to strengthen your evaluation. Start collecting evidence systematically.

The framework doesn’t just help you articulate existing impact. It shows you where your thinking needs development.

Making This a Team Exercise

Don’t answer these questions alone. This framework works brilliantly as a team workshop or trustee away-day activity.

Simple process:

Put each question on a flipchart sheet around the room
Give people sticky notes and 20 minutes to write their answers
Group similar responses and discuss differences
Work together to craft clear, agreed answers
Test your answers with the “would a 12-year-old understand this?” test
Revise until you have clarity everyone can articulate

The discussion is often more valuable than the end product. You’ll discover where people have different understandings of your work, what assumptions need examining, and where you need better evidence.

Reflection Questions

Before you move on, take a moment to consider:

Can you clearly answer all four questions for your organisation right now? If not, which question is hardest and why?

If someone asked you “what’s your impact?” while travelling up a lift together, could you give a 30-second answer using this framework? Try saying it out loud.

About This Series

This guide is part of a learning series on Measuring Social Impact for Charities and Social Enterprises. We’re here to make evaluation practical, accessible, and useful – not overwhelming.

Want to go deeper? Social Value Lab supports organisations to develop proportionate, practical approaches to measuring and communicating impact. We believe every organisation deserves to understand and communicate their value, regardless of size or budget.

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