The simple wheel

1. The simple wheel Jackie Hanberg, Laus Mwakalebela, Marisa Treadway, Jie Yan The Simple Wheel is a way to align your philanthropy investments with your values and measure your impact in a tangible way. Portland State University

2. Agenda • Problem/Opportunity Statement • Industry Overview • Research Methodology & Key Findings • Business Model Analysis • Measurement Framework • Conclusion

3. Problem/Opportunity Statement Problem • Methods for evaluating nonprofit impact are out-dated and inadequate Status quo • Industry:Recognizes the need, but is unsure how to get there • Approach: Top down (nonprofit focused), overlook beneficiaries and “download” service to stakeholders Opportunity • The Simple Wheel can provide a platform for all stakeholders, allowing a revolution in impact measurement

4. Industry Overview Nationwide • 2008: Individuals gave 75% of all nonprofit donations* • 2008: $307.65 billion • 2013: Over 1 million public charities • 5.4% of national GDP Oregon • Individual donors contributed 52% of revenue • Total revenue $13 billion (10,429 active NPs) • 22,000+ registered nonprofits • 8% of Oregon GDP *ONSR, The state of the nonprofit sector in Oregon 2011.Print • Only 1% of nonprofits surveyed in Oregon social impact on users/beneficiaries • None (0%) of them used indicators that allow for social return calculations *Bond, Sharon, “U.S. charitable giving estimated to be 307.65 billion in 2008,” Technical Report, Giving. USA Foundation 2009. Print

5. Industry Overview – Competitive Analysis • POTENTIAL NEW COMPETITORS • Low barriers to entry • Lack of differentiation • Lack of standards • Medium/low capital CUSTOMERS/ INDIVIDUAL DONORS • High bargaining power • Need reliable information • Low switching costs • Information from friends • Discredit self-assessment • COMPETITORS • Medium/High Competition • Narrow financials • Lacks qualitative • No differentiation • Lacks standards • Low exit barriers • SUPPLIERS/NONPROFITS • High bargaining power • Lack measurements • Protect information • Overlook beneficiaries • Focus on provisions • SUBSTITUTES • Low influence • Focused & technical *Porter’s Five Forces

6. Research Methodology & Key Findings • Industry experts • Competitors • Financial Advisors • Foundations • Nonprofit organizations • Donor interviews • Donor survey

7. Testing:Top 4 Resources Donors Use • Survey respondents were asked which of the following resources they used when researching a nonprofit: • Friend • Family • Colleague • Self-interest • Social media • Internet • Media/News • Telemarketing • Word of mouth • Financial advisor

8. Testing:Donor Ranking for the Top 5 KPIs • Survey respondents were asked to rank the importance of each KPI in influencing their decision on which nonprofit to donate to: • Using a scale of 1-5 (1 being not important at all and 5 being the most important) • 35% of respondents indicated that self‐assessment reporting has limited value in their decision‐making process

9. Business Model Analysis - Concept Why? Share & Collaborate Impact measurements Test bed for ideas Evaluation & rating Demonstrate impact Connect with donors

10. Business Model Analysis – Community of Practice How it works • Collaborative platform to facilitate engagement between: • Donors, Beneficiaries, Nonprofits, Practitioners, and Employees (Nonprofits & Government) • Upload AND Download model • Social impact - Ratings & Evaluations of • Simple Wheel Rating • Community Rating • Donation references: social media, interaction & critiques • Engagement at will: volunteer signup, “like,” follow • Reporting: Quick, simple, and understandable • Self-assessment avoidance

11. Business Model Analysis - Revenue $ $ $ Revenue Model • Web advertisements • Social impact audits • Construction of social metric standards • Expert research • The Simple Wheel certifications • The Simple Wheel certification training workshops

12. Agenda • Problem/Opportunity Statement • Industry Overview • Research Methodology & Key Findings • Business Model Analysis • Measurement Framework • Conclusion

13. Measurement Framework Overview Total Score Individual KPI Score

14. Nonprofit Info Brief • Sector and Mission Statement • Where We Work and Who We Serve? • Why Us? • Social Challenges/Issues • Project Highlights • How You Can Help • The SW’s Evaluation • Contact Information

15. Donor Dashboard –Mockup Example • High-level overview of nonprofit • The Simple Wheel rating score • User rating score • Statistical graphs

16. Nonprofit Scorecard Summary • The Simple Wheel score breakdown for each self-assessed KPI • The Simple Wheel score for each third-party assessed KPI

17. Scorecard Details – Social Impact

18. Scorecard Details – Financial Sustainability

19. Scorecard Details – Leadership, Strategy, and Accountability & Transparency

20. Scorecard Details – Contingent Valuation, Brand Equity, and Employee Feel Good Index

21. In Conclusion Nonprofit impact measurement is currently inadequate. The Simple Wheel can be the solution to this need- The first nonprofit measurement platform used by donors and the community to select, evaluate, and influence nonprofit performance… The Simple Wheel’s Next Steps: • Start in Oregon first • Establish a platform and methodology • Prove viability to get funding • Scale platform