Village Enterprise
Impact Rating

Village Enterprise

Top Poverty Nonprofit Impact Audited

Impact: $140 increases the consumption expenditure of a household living in poverty by $420.

Microenterprise Program meets the benchmark for high cost-effectiveness. The nonprofit increases income for a beneficiary by more than $1.50 for every $1 spent.

Note: The impact of this program may not be representative of the entire operation of Village Enterprise.

Methodology

Governance: Passes checks

Mission

Our mission is to end extreme poverty in rural Africa through entrepreneurship and innovation.

Cause

Poverty

Rated Program

Microenterprise Program

Location

Sub-Saharan Africa

Location

San Carlos, CA

Donations processed by the nonprofit.

Cause

Poverty

Rated Program

Microenterprise Program

Location

Sub-Saharan Africa

Location

San Carlos, CA

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Rated Program

Additional analysis available:  Download

Program

Microenterprise Program

Activities

A yearlong, four-part program to the extreme poor: cash to start a business, training, mentoring and a savings group.

Program Type

Livelihood Support

Beneficiaries Served

People living in poverty

Geography

Sub-Saharan Africa

Outcomes: Changes in people's lives. They can be caused by a nonprofit.

Costs: The money spent by nonprofits and their partners and beneficiaries.

Impact: The cost to achieve an outcome.

Cost-effectiveness: A judgment as to whether the cost was "worth" the outcome.

Outcomes

Outcome Metric

Increase in consumption expenditure for a household living in poverty.

To calculate impact, we estimate how many outcomes the nonprofit caused.

Data Source

Outcome data collected via consumption and expenditure surveys administered to randomly sampled participants before and after the program.

Time Period of Data

July 1, 2017, to June 30, 2018

Ratings are based on data the nonprofit itself collects on its work. We use the most recent year with sufficient data. Typically, this data allows us to calculate direct changes in participants' lives, such as increased income.

Method for Attributing Outcomes

Independent evaluator Innovations for Poverty Action conducted a randomized controlled trial of the Village Enterprise program implemented in Uganda in 2014–15. To estimate the counterfactual, researchers randomly assigned villages to a control group and tracked their outcomes over time.

To determine causation, we take the outcomes we observe and subtract an estimate of the outcomes that would have happened even without the program.

Cost

Data Source

Cost data reported by Village Enterprise and data and assumptions about partner and beneficiary costs.

All monetary costs are counted, whether they are borne by a nonprofit service deliverer or by the nonprofit’s public and private partners.

Impact

Impact Statement

$140 increases the consumption expenditure of a household living in poverty by $420.

Confidence in Impact Calculation

ImpactMatters assigned a rating of 5/5 for the audit team's confidence in its impact estimate for the Microenterprise Program.

We calculate impact, defined as the change in outcomes attributable to a program divided by the cost to achieve those outcomes.

Rating

Benchmark for Rating

Impact ratings of livelihood support programs are based on income generated relative to cost. Programs receive 5 stars if they increase income for a beneficiary by more than $1.50 for every $1 spent and 4 stars if income increases by more than $0.85 for every $1 spent. If a nonprofit reports impact but doesn't meet the benchmark for cost-effectiveness, it earns 3 stars.

Determination

The nonprofit increases income for a beneficiary by more than $1.50 for every $1 spent.

Why We Could Be Wrong

We welcome your suggestions for improving our methodology. Our methodology section includes explanations of how we mitigate these issues.

  • The outcome could oversimplify total impact. Using “increased consumption expenditure” as the metric of analysis may not intuitively convey the potential downstream benefits of participating in a livelihood support program, such as reduced financial stress.
  • There could be multiple important outcomes not captured in our analysis.
  • Village Enterprise may be spending additional money in order to serve harder-to-reach and/or particularly valuable populations.
  • In the absence of better data, we assume uniform counterfactual rates for programs, at the risk of masking variation across nonprofits.
  • Our estimates rely on data made public by Village Enterprise on its website, annual reports, financial statements and Form 990s.
  • We only analyze programs that meet our criteria. As a result, this report may not fully reflect the impact of Village Enterprise.
  • We do not assess what explains the nonprofit's cost-effectiveness.

We assign a rating to the nonprofit using the rubric:

  • There are indications of governance or financial health issues at the nonprofit.

  • After being given an opportunity, the nonprofit chose not to publish impact information.

    We are not yet issuing this level of star rating.

  • The rated program does not meet our benchmark for cost-effectiveness.

  • The rated program is cost-effective.

  • The rated program is highly cost-effective.

Read More

Nonprofit Comment

Not provided. This may be because we lacked contact information for Village Enterprise or it chose not to comment. If you are a representative of this nonprofit, contact us to review and comment on your rating.

Before publishing, we ask every nonprofit we can to review our work, offer corrections and provide a comment.


Analysis Details

Analysis conducted by ImpactMatters and published on November 22, 2019.

This rating is based on an independent audit by ImpactMatters. Using data from the audit, ImpactMatters analysts calculated impact and assigned a rating.

We welcome corrections. If you are interested in exploring applications of ImpactMatters data, contact us at partnerships@impactmatters.org.

Governance Check

Village Enterprise passes our governance check.

Overhead spending is reasonable (<35% of total spending)

Charity Navigator has not issued a fraud or mismanagement advisory

Village Enterprise itself has not reported any material diversions of assets

Village Enterprise itself has not reported any excess benefit transactions

Source: Village Enterprise Form 990 and Charity Navigator

How We Calculate Impact

This rating is based on ImpactMatters analysis of the impact of Microenterprise Program relative to costs. Impact is the change in the social outcomes of people served by the program, net of the change that would have happened even without the program (the “counterfactual”); divided by cost. Learn more.

For Donors

A guide to our process for analyzing nonprofits and assigning ratings.

For Nonprofits

Learn about best practices for reporting impact for different program types.

For Researchers

Our collected guidelines on how we analyze impact of nonprofit programs.

Rating is a complex exercise and we urge you to read our frequently asked questions for details of how and why we issue these ratings.