> For the complete documentation index, see [llms.txt](https://docs.gap.karmahq.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.gap.karmahq.xyz/how-to-guides/for-grant-managers/impact-measurement.md).

# Impact Measurement

Karma’s impact measurement system helps program operators define, collect, and analyze the outputs and outcomes of funded projects using standardized and custom indicators.

Karma includes built-in impact measurement features that help **program operators** and **grantees** track, verify, and communicate the real-world impact of funded projects.

The system is inspired by the **Common Impact Data Standard (**[**CIDS**](https://www.commonapproach.org/common-impact-data-standard)**)**, a widely used framework for structuring impact around **outputs**, **outcomes**, and **indicators**.\
Karma adapts these ideas into a **practical, onchain-native workflow** suitable for web3 programs.

### Core Concepts

Before configuring impact measurement, it’s important to understand the core concepts used in Karma.

#### Activities

**Activities** describe what was *directly produced* by a project using the funding it received.

Examples:

* Code written
* Features shipped
* Research completed
* Events organized

Activities answer the question:

> *“What did the grantee actually do?”*

***

#### Outcomes

**Outcomes** describe the *change or effect* that resulted from those outputs.

Examples:

* Increased network usage
* Improved developer adoption
* Economic growth
* Environmental or social change

Outcomes answer the question:

> *“Why did those outputs matter?”*

***

#### Indicators

In Karma, the **metrics used to measure outputs and outcomes are called Indicators**.

Indicators can be:

* **Predefined** (automatically tracked by Karma)
* **Custom** (manually reported by grantees)

Indicators make impact measurable, comparable, and verifiable.

***

### Example: Activities, Outcomes, and Indicators

Imagine you fund a project to build an onchain application.

**Activity**\
Developer activity in your ecosystem

**Activity Indicators**

* GitHub commits
* Pull requests merged

**Outcome**\
Increased economic activity in the network

**Outcome Indicators**

* Number of transactions
* Total Value Locked (TVL)

This separation allows you to clearly see:

* What work was done (outputs)
* What change that work created (outcomes)

### Step-by-Step: Setting Up Impact Measurement

#### Step 1: Categorize Funded Projects

Programs often fund **many different types of projects**, and impact indicators are rarely one-size-fits-all.\
The first step is to categorize your projects.

**How to do this**

1. Go to **Categories** in your admin dashboard

<figure><img src="https://2439776882-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FYgbP24tpFK3mCnbIq4rF%2Fuploads%2FxbNjv0Qvb4lB3uqeW3y5%2FKarma%20-%20Admin%20Dashboard.png?alt=media&amp;token=588c441b-11ae-4bca-9868-f88430b321e0" alt=""><figcaption></figcaption></figure>

2. Click **Add Category and** add one or more categories (e.g. *Developer Tools*, *Infrastructure*, *Community*, *Research*)
3. Assign one or more categories to each funded project

<figure><img src="https://2439776882-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FYgbP24tpFK3mCnbIq4rF%2Fuploads%2FMkYHTqUMNiQrdrpucVHf%2FKarma%20-%20Add%20categories.png?alt=media&amp;token=42b389b8-0a3e-4ec9-be91-533569b042d9" alt=""><figcaption></figcaption></figure>

> Categories determine which outputs, outcomes, and indicators are available later.

#### Step 2: Define Activities, Outcomes, and Indicators

Once categories are set up, you can define how impact is measured for each category.

**How to do this**

1. Go to **Impact Measurement** page from admin dashboard
2. Select a **Category**
3. Add **Activities by clicking on Create Activity/Outcome button**

<figure><img src="https://2439776882-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FYgbP24tpFK3mCnbIq4rF%2Fuploads%2FmfvwZ6zsRv8ICRcDaBdH%2FKarma%20-%20Create%20Activity%3AOutcome.png?alt=media&amp;token=d61f21d6-74a0-4c80-9b2b-c1d5bb2566e9" alt=""><figcaption></figcaption></figure>

4. Choose a name and description (this will be displayed on impact dashboard on your community page)

   <figure><img src="https://2439776882-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FYgbP24tpFK3mCnbIq4rF%2Fuploads%2FiyNSAZ5sCxEgZhbQSOa3%2FKarma%20-%20Add%20Activity.png?alt=media&amp;token=7e2fef79-036f-44b1-a542-8c2b934a2cf1" alt="" width="329"><figcaption></figcaption></figure>

5. Assign i**ndicators** from the dropdown by using the toggl&#x65;**.**&#x20;

<figure><img src="https://2439776882-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FYgbP24tpFK3mCnbIq4rF%2Fuploads%2FTcqIcWszqmyEn8G2oPGs%2FKarma%20-%20Assign%20indicators.png?alt=media&amp;token=aeddf40c-3b4d-47c2-979c-4f21605051cd" alt=""><figcaption></figcaption></figure>

6. If an indicator is not found, you can Add new custom indicator

<figure><img src="https://2439776882-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FYgbP24tpFK3mCnbIq4rF%2Fuploads%2F1zvFi0h7fXuX2G4NI8wG%2FKarma%20-%20Add%20custom%20indicator.png?alt=media&amp;token=fe210acc-163f-401f-af2c-5e43da11e53d" alt=""><figcaption></figcaption></figure>

7. Save the Activity
8. Repeat the same to add more activities or outcomes

**Using Predefined Indicators**

If you select a **predefined indicator**, Karma will automatically pull the data.

Examples:

* GitHub Commits, PRs merged
* Onchain Txns

**What grantees must do**

* Link their GitHub repositories
* Link relevant smart contracts

Karma handles the data collection once links are provided.

**Using Custom Indicators**

If no predefined indicator fits your needs, you can create a **custom indicator**.

Examples:

* Number of workshops conducted
* Partnerships formed
* Users onboarded offchain

**How it works**

* Grantees manually input values
* Data is submitted as part of project updates or milestone completion

This gives you flexibility without losing structure.

#### Step 3: View Impact at the Community Level

Once impact measurement is configured and grantees begin reporting, you can view aggregated impact data.

**How to do this**

1. Go to **Community Page**
2. Open the **Impact** tab

Here you can see:

* Activity metrics across projects
* Outcomes generated by the program
* Indicator values over time

<figure><img src="https://2439776882-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FYgbP24tpFK3mCnbIq4rF%2Fuploads%2FqxqwwP1YlrItIwaT4vsy%2FScreenshot%202025-12-11%20at%204.29.31%E2%80%AFPM.png?alt=media&amp;token=7c2bf6d1-e26d-40b2-abeb-d767ec431d5b" alt=""><figcaption></figcaption></figure>

***

### How Grantees Report Impact

When grantees:

* Post project updates
* Complete milestones

They are prompted to:

1. Select relevant **Indicators**
2. Enter or confirm indicator values
3. Submit supporting context where required

This ensures impact data is:

* Collected continuously
* Tied to real project activity
* Comparable across projects and rounds

***

### Best Practices for Program Operators

* **Keep indicators simple**: Fewer, high-signal metrics are better than many vague ones
* **Separate outputs and outcomes clearly**: Avoid mixing activity with impact
* **Reuse categories across programs/rounds**: This enables longitudinal analysis
* **Default to predefined indicators where possible**: They reduce reporting burden and improve data quality

### Summary

Karma’s impact measurement system allows you to:

* Structure impact using industry-standard concepts
* Automatically track onchain and offchain activity
* Collect comparable, auditable data from grantees
* Generate clear impact narratives for funders and stakeholders

Impact measurement is not just reporting — it’s how programs learn, improve, and earn trust.