We monitor our impact with our Interactive Impact Dashboard. The model used to measure this impact is explained below.
The GitLab Foundation conducts an estimated return on investment (ROI) analysis for each potential investment it makes. We call this our North Star ROI. The North Star ROI is an important step in our due diligence and a key input in the grant selection process. After an applicant submits a concept note (See General Grantmaking Process), the Impact Measurement team conducts an ROI impact estimation analysis.
Our North Star model estimates how much a grantee’s activities increase the lifetime earnings of its participants. The model helps the Foundation to understand how much additional lifetime earnings the grant may create for the grantee’s participants by generating two cost-effective ratios:
1) North Star Absolute Income ROI: A benefit/cost ratio that is the total estimated increased lifetime earnings divided by the full cost of the Foundation’s grant. We seek to make investments that generate at least $100 in additional lifetime earnings for every $1 spent by the Foundation.
2) Relative Income Change: total cost of the Foundation’s grant divided by the total percentage change in income of grantee’s participants. We seek to make investments that are able to increase the annual income of their participants 100% for $1,000 or less per person. We call this cost ratio, the cost to Double Income over Lifetime, DIL.
Applicants will need to propose grants that can surpass at least one of the two cost-effective thresholds to be eligible for funding.
As an organization that values iteration, we very much welcome feedback and comments on our impact model and impact approach - Please email us with any feedback, comments, questions at: [email protected]
The link below provides a more detailed description of our ROI methodology:
North Star Return on Investment Methodology and Process
GitLab Foundation is committed to acting in alignment with our core values of Collaboration, Results, Efficiency, Diversity & Inclusion, Iteration, and Transparency. To demonstrate our commitment to those values, we have published our grantee ROI models at the link below:
Publishing Grantee ROI Calculations
Here are three resources that anyone can use to calculate their program’s ROI:
Google Sheets Template of our current model for others to use.
Presentation walking through our Absolute Income ROI methodology and a real grantee example
Relative Income Change Presentation ****walking through our methodology.
We collaborate with and are influenced by many great thinkers in the impact measurement and impact estimation field. Some of our influences include: