Sustainability reports and social impact evaluation for NPOs: the case of Fondazione Patavium Anffas

An increasing attention is posed on the role of nonprofits' social accountability. NPOs do face a higher accountability demand, which is partially met through the implementation of sustainability reports as tools of disclosure. Concurrently, NPOs are subject to a growing pressure to demonstrate their social performance also in quantitative terms. This has conferred a particular relevance to the practice of Social Impact Evaluation (SIE), as a measurement process grasping the value generated by these organizations. In the Italian context, these instruments have gained a primary significance, through the issue of specific guidelines for the drafting of third sector entities' social reports and social impact assessment. However, there is still a lot of uncertainty on how SIE should be performed, due to the absence of a unique definition of social impact and the existence of many different methods for its measurement. Little empirical research has been conducted to explore approaches to social impact specifically for foundations. Moreover, In Italy SIE constitutes a new field which still needs to be explored. In an attempt to contribute to reducing the existing gap in knowledge and practice, the purpose of the paper is to conduct the SIE of Fondazione Patavium Anffas Onlus, and Italian foundation operating in support of people with disabilities. On the basis of the theoretical concepts of stakeholders' salience, impact and materiality, the study elaborates a specific approach for assessing the foundation's impact. Three distinct objectives are addressed, each corresponding to a research question. First, to map the foundation stakeholders' salience according to their power, urgency and legitimacy. Second, to explore the social impact generated by the foundation on its internal stakeholders and users. Third, to investigate the material topics for the foundation and the efficacy of the latter in these areas of activity. The objectives are achieved through the conduction of a survey on the foundation's stakeholders, structured in three sections each tackling one research objective. Three section-specific levels of analysis are performed. The first enables the construction of three indicators (of importance, urgency and legitimacy) and of a synthetic index of relevance. The second is based on frequency analysis, ANOVA and t-testing, and correlation and regression analysis. The third leads to the elaboration of a materiality matrix and an "efficacy matrix", proposed as a tool for assessing social impact. The study is relevant both in literature and practice. It helps addressing the current lack of empirical research regarding foundation's SIE. It brings new evidence on impact assessment in the Italian nonprofit context, setting an example for third sector entities with similar size and nature operating under the same legislation. Moreover, it might guide other organizations working in support of people with disabilities, in selecting proper indicators. The value of the methodology lies also in the proposal of new instruments to be used for social impact assessment, such as the relevance indicators and the efficacy matrix, and in the stakeholders' engagement during the various steps of the process.