The Funder Perspective: Impact Reporting with John Ellerman

In 2025, the Charity Commission announced new accounting regulations, requiring charities above a certain size to report on their impact in their annual reports. Many charity leaders have expressed scepticism. Our wonderful CEO Debra Allcock Tyler argued that it is harder for some organisations to measure impact. Many charities have a “massively over-stretched budget” and the push for metrics risks “overlooking the real intangible, unmeasurable magic”.

To discuss all things impact reporting, Senior Researcher Kallista spoke with Sufina Ahmad, Director of John Ellerman Foundation to discuss their new Impact Framework, which it recently launched alongside its new five-year strategy. This interview provides some key insights into why measuring impact matters and how you can do it too.

How does John Ellerman define impact?

“This is a great question. We base our definition of ‘impact’ on the Association of Charitable Foundation’s definition of impact, which is: the positive and negative effects of a foundation’s resources, activities and behaviours, and the extent to which these effects contribute to its charitable mission.”

Sufina also adds that the foundation recognises that impact is nonlinear, that it can be positive, negative or neutral, and that change can take a long time to become obvious.

Why is it important for grant-makers to report on their impact? 

There is often pressure on charities to produce impact reports to increase engagement and success with funders, given increased demand and competition for funding. So, it is a breath of fresh air to see a funder take on this responsibility.

“We need to be accountable to those we work with externally, by sharing what is and is not working. Impact reporting is part of our commitment to transparency, accountability and effectiveness.

Impact reporting also allows us to go some way towards addressing the power imbalance involved between grant-maker and funded organisations.”

How did John Ellerman develop its Impact Framework? 

Sufina looks back over the past few years, describing the process. The current impact framework, launched in October 2025, is the foundation’s second. Its first impact framework ran between 2023 and 2025, under the foundation’s previous strategy.

The first framework was “a new endeavour. It took several years to develop. We had collected data before, but it was the first time we were intentionally measuring our impact in a holistic way across everything we do, effectively our investing, our grantmaking and our wider operations. It felt a bit like we were starting from scratch in some ways.”

When developing the second framework, the team built upon their knowledge and experience, which meant that it took less time to develop. Of course, there were still many elements that required reflection, including what to measure and how to measure it. The second framework, like the first, uses a combination of quantitative and qualitative data to construct a dashboard. Indicators such as application numbers and success rates are easy to collect in comparison with qualitative indicators like satisfaction rates and diversity. The foundation also considers external measures and analysis, like the Foundation Practice Rating.

“Collecting this data helps us identify where we need to make operational changes. The purpose of our impact framework is to assess if the work we are doing in relation to our grant making and our investing are effective in helping us to achieve the Foundation’s aims.”

What are the benefits of investing in impact reporting? 

“Firstly, speed. Having the framework in place for the five-year period will mean that it can be adapted accordingly and with more ease.

Secondly, we will create a feedback loop with the organisations we fund and stakeholders by sharing our findings (via progress reports, blogs, panels etc.)

Thirdly, we will feel more confident in processing and sharing impact over time.

Lastly, there are changes, such as the general election in 2029, that John Ellerman Foundation can expect. Our framework will seek to be responsive to these changing circumstances.”

As grant makers achieve their impact largely through their grant holders, to what extent does John Ellerman need grant holders to feedback their impact?

“Our Impact Framework recognises that our impact is reliant on the work of others, like our grant-holders and our fund managers. That’s why the Impact Framework describes the kind of impact we can have as an organisation directly and indirectly. In terms of what we ask from our grant-holders, we do ask them about their track record and the way in which they plan to approach the coming years and why. We also ask them to come up with three outcomes for the lifetime of their grant, which they then provide updates on annually as part of our reporting requirements. We are always interested in the reflections on what is and isn’t working and the reasons for that.”

What advice would you give to others looking to develop an impact framework?  

“It is important to understand the motivations and/or purpose of impact reporting. Ask yourself why your charity wants to create a report? Who is it for (internal and/or external use)? Once you have figured out these fundamental questions, you can navigate how to do it and what to measure.

There are various methods that can be used to produce an impact report. Your charity should find one that suits it best. Factors like organisation size, resources, organisational aims and needs will determine the framework you adopt.”

She goes on to say that charity staff should be open to learning things that they didn’t know and/or didn’t want to hear.

Most importantly, “Impact reporting should be joyful and interesting. It is a way to celebrate progress and learn about how to adjust your strategy and operations to achieve your mission. It is a way to generate new ideas, to add to your organisation.”

More about John Ellerman

John Ellerman Foundation awards multi-year grants towards core costs of charitable organisations that at their core are changemaking organisations committed to advancing justice through the active involvement of individuals and communities with personal or direct experience of the issues. You can find more information about it here, where you will also find the foundation’s impact frameworks. Alternatively, check out their page on our funding database Funds Online!

Need help with impact reporting?

In response to the Charity Commission’s announcement in October 2025, DSC launched a new training course to help charity staff navigate the latest reporting requirements as announced by the Charity Commission. Our Research Team can also support your charity’s evaluation work, see for example our work with Benefact. Contact us at [email protected] to find out how we can help.