Resource ID: INDIGO-ARES-0068
Link: https://nefconsulting.com/wp-content/uploads/2017/05/TheMoneyTrail.pdf
Local Multiplier 3 (LM3) was developed by the New Economics Foundation as a simple and understandable way of measuring local economic impact. It is designed to help people to think about local money flows and how their organisation can practically improve its local economic impact, as well as influence the public sector to consider the impact of its procurement decisions. It was designed to be quick and relatively easy, and to highlight where an organisation can improve its impact.
LM3 shows external bodies (funders, public bodies) the value of funding or contracting with the organisation in terms of local economic regeneration. For example, as highlighted in The money trail, Eden Community Outdoors was able to use the LM3 to demonstrate its impact on the local economy, which helped the organisation to secure funding for a new post to take work on local economic impact forward.
Impact goal: Housing
Internal/external: External, Internal
Leader: New Economic Foundation (NEF)
Method: Surveys, Interviews, Attribution
Output format: Monetary valuation
Scale: Meso
Sourcing: Self driven
Time frame: Retrospective
Type: Framework
Used in sectors: Housing, Governance policy, Social enterprises, Developed countries
Who: Third sector, Private sector
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