Tools and Resources for Assessing Social Impact


Movement Above the U.S. $1 a Day Threshold

This method attempts to determine whether and where clients of microfinance institutions are leaving poverty, defined as moving from below US$1/day to above that threshold. There are three prongs to this methodology: 1) analyzing existing data about a microcredit client's movement across U.S. $1/day; 2) administering new surveys to establish baseline data for entering clients so their progress can be tracked over time; and 3) commissioning expert panels of top poverty researchers in various countries with high concentration of microfinance activities to ensure that accurate estimates of client's net exit from below U.S. $1/day is captured. The second item is a poverty scorecard of 10 questions that loan officers administer during loan applications and maintenance interviews with clients to measure the poverty level of their clients at entry and periodically over time.

Tags: indicators, scorecard/rating

Key Elements
© Foundation Center
All Rights Reserved.
Privacy Policy