Considered a prominent matter in quest of improved actions and social investments, the Economic Evaluation of Social Projects is recognized as an important tool to support the management and improvement of social initiatives. It promotes an optimized allocation of funds and accountability not only to donors, but also to those who benefit from the social interventions and to the society at large. This methodology also helps Fundação Itaú Social to bridge the gap between economic competences and the social arena.
An Economic Evaluation is composed of two parts: the impact evaluation and calculation of the economic return. The impact evaluation quantifies the results of an intervention and establishes causal relationships between the project actions and the indicators of interest. This allows one to state if the changes effected actually resulted from that intervention or if they would eventually occur anyway. The economic return measures the return of the program to the society in monetary terms by comparing the project costs with the benefits obtained to the target audience.
The culture and practice of the Economic Evaluation of Social Projects are disseminated by means of courses, seminars, workshops and events organized to managers of social projects of civil society organizations and government agencies. The Economic Evaluation of Social Projects Network plays a key role in disseminating the methodology and articulating the professionals who attend the training sessions delivered by the project team. The economic evaluation applies to the social projects developed by Fundação Itaú Social and partner organizations as well as to public policies focused on education.