Fighting Poverty With Big Data: A New Tool for Nonprofits and Their Funders

Exponent Philanthropy

2 weeks ago

By David Jeffrey, National Commander of The Salvation Army

Poverty is one of the trickiest social issues to define, understand, and alleviate because of its complexity: it affects many aspects of life in a uniquely vicious cycle. But only when it is properly defined and understood can effective action be considered. Nonprofits need to deeply understand the issues they are working to solve; just as important, their funders need reliable tools for smart decision-making and accountability.

The Human Needs Index (HNI) is such a tool. Created by The Salvation Army in partnership with the Indiana University Lilly Family School of Philanthropy, the HNI uses a wealth of service data to provide a new, in-depth look at need in the United States.

Active in every zip code, The Salvation Army is the largest nonprofit provider of social services, meeting basic human needs across the United States. Each year, approximately 30 million people are assisted through myriad local programs in more than 7,600 facilities nationwide.

As part of our donor stewardship, we have closely tracked and measured our services from the start, producing a treasure trove of data that the HNI now leverages.

According to Dr. Una Osili, Director of Research, Professor of Economics and Philanthropic Studies at the Lilly Family School of Philanthropy, “The Salvation Army has a presence in virtually every community, whether urban or rural, and has historically collected very timely information on the provision of housing, food and many other aspects of human need. Here is a nonprofit that is not only part of the conversation about providing services, but also in a unique position to provide data that has never before been available.”

Seven variables, one HNI value

Those of us who work day in and day out with families and individuals in need have a firsthand appreciation of the debilitating complexities of poverty. That is why the HNI looks at more than one service variable.

The Salvation Army tracks 230 distinct service variables, each tailored to the needs of a particular community. In developing the HNI, Salvation Army statisticians and the Lilly Family School of Philanthropy research team brought together seven variables that represent the very foundation of human needs:

Meals Provided
Groceries Provided
Housing Assistance (rent/mortgage assistance)
Clothing Provided
Furniture Provided
Medical Assistance (primarily prescription payment assistance)
Energy Assistance (help with energy bills)

The seven variables are combined to produce a single HNI score at both the national and individual state levels. In both cases, the scale of the HNI begins at 0 – indicating a minimum level of need. The model has been statistically tested and validated by Lilly Family School of Philanthropy researchers to ensure scientific rigor.

A complementary tool for funders

Private nonprofits make up a vital component of our country’s safety net of social services; The Salvation Army is the largest example, but not the only one. The HNI eliminates a gap of information that had heretofore been present in the decision-making process. It helps those on the front lines see more clearly where the need is. Even better, it can anticipate what kind of assistance may be needed.

Funders can also reference the HNI at the individual state level when determining where to get engaged, and over time to help measure changes in need levels. It is important to note that the HNI is reliable from the national level down to the state level (with the exception of Washington, D.C., the only non-state included); however, funders could even draw some comparisons between a local nonprofit’s evolution and the state’s HNI scores over time.

Ideally, the HNI can confirm positive change in a timely way that can strengthen a community’s hope and resolve to continue evolving in the right direction.

To address a complex issue such as poverty requires a sensitive measurement tool that is timely in detecting need, dynamic in the way different variables contribute to overall need, and reliable in informing decision-making. The HNI is an important new tool that presents an opportunity for not only The Salvation Army, but also for other nonprofit organizations, to enhance and magnify their work in alleviating suffering and mitigating poverty.

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