Bringing charities, not-for-profits and social enterprises into your supply chain as suppliers creates different Social Value from donating to them. Four new Measures in the Social Value TOM System™ now capture both, and treat not-for-profits (including charities) and social enterprises separately, because each creates value in a different way.
Charities and other not-for-profits, and social enterprises, often provide vital services to people that public services miss, including mental health support, debt advice, befriending and emergency housing.
Rooted in their communities, they often know local people and their needs in ways larger services can’t.
Not-for-profits put everything they earn back into their mission, and social enterprises reinvest at least half of their profit in theirs. Supporting them maintains the civic infrastructure that communities, and businesses depend on.
For years the Social Value TOM System has helped organisations measure spend with Voluntary, Community and Social Enterprises (VCSEs) in the supply chain and donations to them.
We’re pleased to announce four new Measures that go further. They split that activity two ways: by what you do (buy or give) and by who you support (a not-for-profit or a social enterprise). Each combination has its own Measure and its own proxy, so the value reflects what that kind of support achieves.
Buying and donating create very different value
When you buy from a VCSE, you get the product or service you paid for. You’d get that from any supplier, so it isn’t counted as Social Value. What counts is the extra value the organisation creates while delivering it.
When you donate, your money funds activity that wouldn’t happen otherwise. More of what the organisation creates is additional, so more of it counts.
We’re pleased to announce four new Measures that go further. They split that activity two ways:
- What you do: buy from the organisation as a supplier, or donate to it
- Who you support: a not-for-profit (including charities) or a social enterprise
Each combination has its own Measure and its own proxy, so the value reflects what that kind of support achieves.
Meet the new Measures
.png?width=728&height=364&name=NT148%20(1).png)
NT148: Spending with not-for-profit suppliers in the UK
This Measure captures buying goods and services from charities and other not-for-profit organisations in your supply chain. Bringing them in as suppliers gives them a stable income and gives you a partner rooted in the communities your contract serves.
What does the TOM System proxy for this Measure capture?
The proxy value for this measure recognises the value the organisation creates on top of the service you buy: the time its volunteers give, the wellbeing its staff and volunteers gain, and the extra economic activity your money sets off when it reaches a small organisation.
NT149: Spending with Social Enterprise suppliers in the UK
This Measure captures buying goods and services from social enterprises in your supply chain: businesses with primarily social objectives that reinvest at least half of their surpluses in their mission or community.
What does the TOM System proxy for this Measure capture?
The proxy recognises the wellbeing staff gain from working for a purpose-driven organisation, beyond their pay, and the extra economic activity your money creates when it reaches a small organisation.
NT150: Support for Social Enterprises through donations
This Measure captures financial donations your organisation makes to social enterprises in the UK. Staff donations and money raised from third parties at fundraising events aren’t included.
What does the TOM System proxy for this Measure capture?
Because your donation funds activity that wouldn’t otherwise happen, the proxy counts more of what the organisation creates. It includes half of the economic value its staff deliver (reflecting that social enterprises can distribute up to half their profit), the wellbeing staff gain, and the wider spending effect.
NT151: Support for not-for-profit organisations through donations
This Measure captures financial donations your organisation makes to charities and other not-for-profits in the UK. Staff donations and money raised from third parties at fundraising events aren’t included.
What does the TOM System proxy for this Measure capture?
This proxy counts the full value a not-for-profit creates with your donation: the economic value of what its staff and volunteers deliver, the wellbeing they gain from the work, and the extra economic activity your money sets off in the community.
Using the new Measures in practice
If you’re a contracting authority, adding these Measures to your procurements encourages your suppliers to bring charities, social enterprises and not-for-profits into their value chains as suppliers.
It also means the donations suppliers commit to are valued more accurately, reflecting the kind of organisation they support. Every Measure asks suppliers to name the organisations involved, so you can see exactly who your contracts are supporting and check that the support reached them.
If you’re a supplier or business, the new Measures let you capture the Social Value of buying from purpose-driven organisations and of your charitable donations. If you already work with social enterprises or charities, that activity can now count in your bids and your reporting, with values that reflect what each kind of support achieves.
Available now
All four Measures are available in the Social Value TOM System and included with Social Value Portal membership at no additional cost to use now.
Not yet a Social Value Portal member?
These new Measures are one example of how the Social Value TOM System continues to evolve with the sectors it measures. Social Value Portal membership gives you full access to every TOM System Measure, including all new Measures, as well as the Social Value Portal Platform for procurement and evaluations, bidding, measurement, contract management and reporting.
Book a discovery call with our team to explore how membership can help you measure, manage and maximise your Social Value.
.svg){kind=small}
