Measuring Social Impact

Presented by Joyce SouFamily Services Ontario

May 7th, 2013

Impact +

Poverty reduction

Carbon reduction

Jobs for marginalized populations

Stronger family relationships

Energy efficiency

1% p.a. over three years

Prime + 2%

8%

Return

If you cannot measure ityou cannot improve it

Sir William Thompson

The quest for certainty blocks the search for meaning

Erich Fromm

Albert Einstein

Not everything that counts can be counted,

and not everything that can be counted counts.

1932 - American Institute of Accountants form Committee on Generally Accepted Accounting Principles

1936 – Canadian Institute of Chartered Accountants form Terminology Committee

1942 – Institute of Chartered Accountants in England & Wales publish Recommendations on Accounting Principles

2001 – International Accounting Standards Board is formed

Impact Map

What is SROI?

Social Return on Investment is a framework for measuring and accounting for the value created or destroyed by our activities – where the concept of value is much broader than that which can be captured by market prices.

val·ue/ˈvalyo͞o/noun

the regard that something is held to deserve; the importance, worth, or usefulness of something

the material or monetary worth of something

13

Return on Investment

(Net Profit) Cost of Investment

ROI =

7 Principles of SROI

• Involve stakeholders

• Understand what changes

• Value the things that matter

• Only include what is material

• Do not overclaim

• Be transparent

• Verify the result

15

Case Study: Family Centre

• Single-parent or blended families• Experiencing relationship challenges with

children• Police involvement • Reported significant stress• Time off work taken

Stage 1

Stakeholders Intended/unintended changes

Who will we have an effect on?

What do we think will change for them?

1. Identify stakeholders

Involve stakeholders Understand what changes

Only include what is material

Stage 2      

Inputs Outputs The Outcomes

What will they invest? Value $ Summary of activity

in numbers

Description

What do stakeholders say changes for them?

2. Map outcomes

Involve stakeholders Understand what changes

Only include what is material

Stage 3          

Indicator Source Quantity Financial Proxy Value $ Source

3. Assign indicators and financial proxies

Value what matters

Stage 1 Stage 2      

Stakeholders Intended/unintended changes Inputs Outputs The Outcomes

Who will we have an effect on?

What do we think will change for them? What will they invest? Value $ Summary of activity in

numbers

Description

What do stakeholders say changes for them?

Children Less outbursts Time $0.00 Counseling services Feel more confident in relationships with family

1. Identify stakeholders 2. Map outcomes

Involve stakeholders Understand what changes

Only include what is material

10 * $2,500 = $25,000

Stage 3          

Indicator Source Quantity Financial Proxy Value $ Source

Foster care avoided Internal Data 10 youthMonthly

maintenance payment

$2,500 per year/youth Internal Data

3. Assign indicators and financial proxies

Value what matters

4. Establish Impact

Stage 4      

Deadweight % Displacement % Attribution % Drop off % Impact

What would have happened without the

activity?

What activity would we displace?

Who else would contribute to the

change?

Will the outcome drop off in future

years?

Quantity times financial proxy, less deadweight,

displacement and attribution

0% 0% 0% $25,000

Do not overclaim

($25,000) $15,000

SROI =

5. Calculating SROI

= $1.66

For every dollar invested in Family Centre $1.66 of social value is generated.

Be transparent

Verify the result

cost of investment

net social benefit

SROI: Challenges and Opportunities

• Resource intensive• Difficult to standardize• User knowledge required

• Tells full story• Captures material change• Assigns financial value to outcomes