Impactful philanthropy

Increasing effectiveness through innovative, evidenced based funding at scale

Model for driving evidence based results, identifying an issue produces solutions whose results serve as evidence of scale.

All philanthropists want their giving to have maximum impact. And not just in the short term. Through our work at UBS Optimus Foundation, we’ve learned that a focus on evidence, scale, and innovative funding is central to impactful philanthropy.

We know that current philanthropic funding isn’t enough to solve the world’s social and environmental problems. We need more funding, yes. But critically, we need funding to be driven by evidence of impact.

How should philanthropists choose programs to fund? Evidence of results.

We employ a wide range of methodologies for evidence gathering, from Randomized Controlled Trials (RCTs) to quasi-experimental studies, to participatory approaches to evaluations.

Not all interventions can be tested by the most robust methodologies like RCTs.

Evidence available varies and part of our work involves building evidence through various fit-for-purpose methodologies.

Evidence in action

In India, various versions of TaRL (Teaching at the Right Level) have been shown to produce large gains in numeracy and literacy. Before a 50-day supplemental school program was implemented, 39% of children could not recognize letters and 85 percent could not read a paragraph or story. Children who did not receive TaRL instruction made little improvement. But for children who participated in the program, assessment evidence showed 92 percent could recognize letters and 49 percent could read a paragraph or story.

UBS Optimus Foundation co-funded a study by Freedom Fund to understand child sexual exploitation in the adult entertainment industry in the Kathmandu Valley, Nepal. Using rigorous techniques, the survey estimated that 1,650 children were working in this sector – 60 percent of whom were working in sexually exploitative environments. Investigation led to several research-based recommendations about alleviating the problems, including building the evidence base on viable alternative livelihoods for entertainment workers as well as working to change societal norms and attitudes that may enable harmful behaviors in the industry.

What is scale? Investing in solutions that result in systemic change.

animated graphic showing evidence use

We pursue scaling through a variety of strategic approaches:

  • First, effective solutions to social and environmental challenges can be scaled by deployment in different contexts.
  • Second, proven solutions undertaken by grassroots NGOs can be adopted and even eventually funded by governments, creating sustainable progress.
  • Third, changing policy and social norms is also frequently critical to the successful scaling of impactful interventions.

Scale in action

At the invitation of the Liberian government, Last Mile Health (LMH) developed an innovative model to deliver primary healthcare to Liberia’s most remote communities. Over a quarter of the population lives at least five kilometers from the nearest healthcare facility. LMH worked in one district (Konobo) to develop a model for supporting community health workers (CHWs) with training, supplies, supervision and pay to reach remote communities.
In areas where LMH was present, treatment rates for malaria, diarrhea and upper respiratory infections in children more than doubled from 29 to 69 percent. In Rivercess County communities without the LMH intervention, treatment rates fell.

UBS Optimus Foundation is supporting Hope and Homes for Children (HHC) to work with the government in five South African provinces to show that all children in institutions can be returned to family-based care and that alternative legal options can be pursued for any child in danger. In close collaboration with governments, HHC is reintegrating children from orphanages into families, preventing family separation in the first place and putting in place alternative family-based care (like foster care) for children who need it.

How do we fund? Using innovative social finance vehicles, we maximize impact, making funding go farther.

UBS Optimus Foundation is active in developing and piloting social finance instruments. Results-based funding often provides greater value for philanthropists and public funders, as impact is financially incentivized. Social finance can also engage private sector capital by paying a financial return alongside achieving social or environmental goals. Social finance is not suitable for all social or environmental programs, but with the right interventions can multiply the impact of philanthropic giving.
 

Curious how this exactly works?

See our Social Finance white paper
See our DIB Fund white paper

Innovative funding in action

Educate Girls DIB (2015-2018)

  • World’s first education impact contract
  • Enrolled 768 girls in school
  • Improved learning at 166 schools, benefitting 7,300 children
  • Achieved 15% internal rate of return (IRR) on USD 270k investment

Utkrisht DIB (2018-2021)

  • World’s largest impact contract to date in maternal and child health
  • Aims to improve quality standards for 360 small healthcare organizations
  • Already benefitted 200,000 pregnant woman and their newborns, with a program target of 600,000
  • Target IRR 5-8% on USD 2.9m investment

Quality Education (QEI) DIB (2018-2022)

  • World’s largest impact contract in education to date, building on the Educate Girls DIB proof-of-concept
  • Aims to improve literacy and numeracy skills by scaling proven interventions, transforming education delivery
  • Already benefitted 100,000 children, with a program target of 200,000
  • Target IRR 8% on USD 3m investment