Impact accounting

: developing a first approach for monetizing the impact of corporate in-kind donations on the community

Abstract

The thesis aims to develop a possible approach for Sonae MC to monetize the impact of corporate in-kind donations on the community. The current accounting system lacks a comprehensive understanding of a company's value creation, as it cannot incorporate social and environmental impact. This also applies to in-kind donations. Only the impact of corporate in-kind donations on the corporation’s financial situation is considered in the accounts. The literature lacks information on the impact created through in-kind donations on the community. Existing research focuses on the impact of in-kind donations on the corporation’s financial performance. The findings indicate that corporations are currently measuring the impact of in-kind donations on the community in terms of inputs (monetary value of in-kind donations) and/or outputs (number of institutions reached), based on different calculations, and monetizing procedures. Measuring the impact of in-kind donations on the community turns out to be difficult and very complex. As a first approach to monetizing the impact of in-kind donations on the community, the thesis proposes to determine a market value for corporate in-kind donations in a standardized way. The market value is suggested to be determined based on the average retail price, which makes it possible to value in-kind donations independently of a company's price or cost structure.

Date of Award	30 Jan 2024
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Nuno Moreira da Cruz (Supervisor)