Accounting for Social Impact. The case of Spain’s Third Sector of Social Action

Abstract

This teaching case examines how organizations in Spain’s Third Sector of Social Action (TSAS) measure and communicate the social impact of their work. The TSAS brings together nearly 28,000 nonprofit organizations that increasingly face pressure to demonstrate transparency, effectiveness, and alignment with stakeholder expectations.

Drawing on Plataforma de ONG de Acción Social (POAS) data and academic literature, the case introduces the impact value chain and the Theory of Change as key frameworks for understanding how nonprofit interventions generate social change and for selecting meaningful indicators. The case invites students to reflect on how to choose good indicators and understand impact measurement not only as accountability, but as a tool for learning and improving nonprofit practice.