CauseLabs: Impact Measurement
Written by Megan Murday
CauseLabs builds websites and digital platforms for nonprofit organizations. Their mission is growing positive impact, using technology as a force for good. Sheryle Gillihan is the CEO of CauseLabs, joining the team in 2010 after serving in the U.S. military and working in the nonprofit and fintech sectors.
Companies always measure revenue but rarely measure impact. CauseLabs has created a business model that ties revenue and impact - as the team creates more web applications for nonprofits, their revenue and impact grow in tandem. CEO Sheryle Gillihan has challenged her team to bring investment-grade rigor to impact measurement. The analysis scope includes the impact of both internal operating decisions and external outcomes generated by their nonprofit customers.
The impact dataset is used for operational management and stakeholder engagement. Baselines and trend lines show current trajectory, and benchmark comparisons highlight performance gaps and inform goal setting. Constant impact iteration and improvement drive environmental efficiency and quantifiable impact to share with customers, employees, and third party partners.
How to Measure Impact
CauseLabs is a B Corporation, which requires annual impact measurement and verification. Their B Champion maintains an internal database of impact metrics and performance data, and CauseLabs has a twice annual “State of the Lab” reporting cadence to understand their trajectory and course correct as needed to meet targets.
In order to avoid inertia or deadlock, Sheryle recommends starting small and expanding the measurement scope over time. CauseLabs adds KPIs each year to create a fuller picture of organizational impact and understand where they can improve.
CauseLabs began measuring their own environmental performance in 2017. The team started by measuring Scope 1 and 2 carbon emissions associated with their internal consumption of fuel, refrigerant, electricity, heat, and steam. Over time, Scope 3 measurement expanded to include more upstream and downstream activities in the corporate value chain. For example, CauseLabs began including the carbon footprint of email use in 2020 and Zoom use in 2021.
The team also collects data on impact created by their nonprofit customers. The majority of clients have annual reports that share impact KPIs, which CauseLabs reviews. By aggregating comparable metrics like beneficiaries served and jobs created, CauseLabs can communicate the impact enabled by their technical solutions.
How to Use the Data
Their robust dataset enables CauseLabs to understand and grow their impact. Environmental impact efforts have focused on reducing and then offsetting carbon emissions. They have chosen Google Cloud for storage because Google offers customers the ability to select data centers based on their renewable energy use. CauseLabs has also partnered with groups like Climate Neutral to source high quality carbon offsets and ensure additionality.
Sheryle points out that impact measurement allows her team to understand where they could do more good. Her team asked the question last year, “How many women-owned businesses do we support?” and began collecting data on the gender diversity of their vendors. As a result of this effort, CauseLabs found that they could send more business to women-owned companies.
There is no finish line for impact. CauseLabs continually expands how it conceptualizes, measures, and grows its impact. The dataset allows their small team to serve as a model and testing ground for environmental and social practices that other organizations can adopt, extending their impact even further.