Session #4/4
Training Schedule
Session 1 Session 2 Session 3 Session 4May 26 June 23 Sept. 22 Oct. 27
Guiding Principles
Social Value Creation
Stakeholders
Mapping outcomes
Selecting Indicators
Predictive vs. Evaluative SROI
Financial Proxies
Establishing Impact by Stakeholder
SROI calculations
Preparation for presentation of results
Agenda
Step by Step Example of Calculation Double counting Future projections
Break Example using the Social Evaluator SROI Membership and Assurance December’s Presentation Karen summarizing feedback from
evaluation
Learning Objectives
Understand how to make an SROI calculation
Appreciate the choices and decisions required when projecting value into the future
Have the tools you need to finalize an SROI analysis for your initiative
Clarify presentation of final SROI report
Impact Calculation (see guide p. 62)
Impact = Outcomes MINUS
Attribution, displacement and deadweight
SROI Calculation (see guide p. 66-69)
Total ImpactTotal Input
= SROI
Steps in the SROI Calculation
StakeholderSelect key beneficiaries - those are the stakeholders who benefit most directly, and indirectly, from your work.
Outputs Track the tangible numbers associated with your activity.
OutcomesName the specific changes that will result from your work (from the perspectives of various stakeholders).
IndicatorsSelect indicators that measure the outcomes you seek. The indicators need to be expressed in take the form of dollars.
ProxiesSelect proxies if you cannot find data that directly corresponds with the indicators.
Data Sources Go to the Social Enterprise Fund website for indicator and proxy data
ImpactAssess your impact by calculating the deadweight (what would have happened if you hadn't intervened) attribution (how many others contributed to the outcome) and displacement (if relevant)
Data Collection
Quantify your Inputs, Outputs, and Outcomes
Calculation
Add up all the inputs. Add up all the benefits. Subtract the deadweight, attribution and displacement. Calculate the SROI. Conduct a sensitivity analysis. Calculate the pay-back period. Project the value into the future assuming a drop off rate.
Translating Steps into an Example
StakeholderIf you are starting an employment program with troubled youth. Your stakeholders are youth, funders, and the Solicitor General.
OutputsThis could include number of people trained through the program; the number of jobs created, etc.
OutcomesYou may increase income, improve self esteem, reduce reliance on public benefits and reduce EYOC time/recidivism.
IndicatorsYou could compare monthly income before and after program participation, changes in welfare payments, days spent in EYOC.
ProxiesYou may wish to find a proxy to stand in for increased self-esteem such increase in volunteer hours.
Data Sources
SROI database shows that Wild Rose Foundation values volunteering @ $15/hr and incarceration costs; welfare rates and employment income from own data base.
ImpactIf 25% of all young offenders gain steady employment without your program, you have 25% deadweight. If you collaborated with 1 other agency, you could attribute 30% of the success to them.
Data Collection
See data table on next page.
Calculation See tables on next page.
Sample Data Table: Youth Program
Variables Indicators Data/ValueInputs Grant for one year’s operation $400,000 Outputs No. of youth trained per year 50 Average hours of volunteering per mo. 7
Average employment (in months) 8 % of Youth who do not re-offend (1 yr) 90% % of Youth who found employment 75%
% of Youth with increased self-esteem 85%Outcomes Youth: Average wage based income/mo $1,850
Youth: Increased self-esteem thru volunteering $15
Funder: Average reduced IS payment/mo $583 Sol Gen: Average reduced stay in EYOC $10,530 Impact Deadweight 25% Attribution could range from 20% to 30% 30%
Sample Adding Up the Benefits
Annual Benefit Value Calculation
Employee Wages Earned $ 555,000 $1850 *8 mo* 50 * 75%Less Lost IS Benefits $ (174,900) $583 * 8 mo * 50 * 75%
Increased Self Esteem $ 53,550 $15 x 7hrs x 8 mo x 50 x 85%
Sub-total Benefits to Youth $ 433,650 Sum of 3 lines above
Welfare benefits Re-allocated $ 174,900 $583 * 8 mo * 50 * 75%
Young Offender Centre Re-allocated $ 473,850 $10,530*50* 90%
Sub-total Benefits to State $ 648,750 Sum of 2 lines above
Total Benefits Created $ 1,082,400 Sum of 2 sub-totals
Sample SROI Calculation Value Description
Total benefits Created $ 1,082,400 As taken from aboveMinus deadweight -$ 270,600 Used 25%
Minus attribution -$ 324,720 Used 30%
Net Value Created Year 1 $ 487,080Total benefits minus deadweight
and attribution
SROI for Year 1 1.2:1Net Value divided by Investment
(Input) $400,000
Pay Back Period (see guide p. 71)
The basic formula is:Payback Period in Months = Investment .
Annual impact * 12
Value Description
Net Value Created Year 1 $ 487,080 Total benefits minus deadweight
and attribution
Investment $ 400,000 Investment (Input) $400,000
Mo’s to Break Even 10 $400,000/$487,080*12 = 10
Caution on Double Counting
Be clear on the chain of events ala WBF: Preparation for the GED exam led to Graduation from the Training Program
led to Employment
Counting all the links in the chainartificially inflates the value
Only count the last link – the endand not the means
Projecting Future Value
The impact may last longer than the initial period of investment.
Longer term impacts can be measured (if indicators are tracked over time) or estimated.
Where outcomes last for more than the period over which the investment or expenditure relates, the financial proxy for the value of those outcomes needs to be discounted.
Discounting (see guide p. 67)
Discounting relates to financial values. (Drop off relates to duration of benefits).
Group Discussion:Would you prefer to receive
$1,000 today or in five years? Why?
DiscountingWhat is the future value of
money? According to the Treasury Board, $1,000 is worth $837 in 5 yrs time.
• $1,000 loses value at 3.5% per year
• A blunt instrument, but more credible than 0%
Sample Projecting the Value
Indicators Data Source/Description
Discount rate 3%Time value of money - used Alberta inflation rate from AED website
Benefit period
3 Number of years into the future that we are projecting
Drop Off Rate 15% Decline in success rate, year on year
Sample SROI Calculation Value Description
Net Value Created Year 1 $ 487,080 Total benefits minus deadweight
and attribution
Net Value for Year 2 $ 414,018 85% of Year One Net Value
Net Value for Year 3 $ 351,915 85% of Year Two Net Value
Net Present Value for 3 Years $ 1,185,197 Used 3% discount rate
SROI for 3 Years 3:1Net Present Value over 3 years
divided by the Input $400,000
Sensitivity analysis (see guide p. 69-70)
Check different assumptions and their impact:• deadweight, attribution and drop-
off• financial proxies• quantity of the outcome• value of non-financial inputs
From Impact Map to SROI report
Having completed the impact map, you are ready to start inputting your information into the Social Evaluator.
Other than what’s in the impact map, What else do you think should be in a report?
Reporting (see guide p. 74-75)
SROI aims to create accountability to stakeholders. As such it is important that the results are communicated to stakeholders in a meaningful way.
Your final report should comprise much more than the social returns calculated. It should tell the story of change and explain the decisions you made in the course of your analysis.
When telling our story we need to include qualitative information to bring the data alive
Calculating the SROI on the Evaluator
www.socialevaluator.eu Demonstration of how I had to tweak
the SROI example (done in excel) to fit the Social Evaluator model
SROI Standards
The SROI Network is developing an assurance scheme that will include:• Accreditation of practitioners• Assurance of SROI analyses
• Verification• Assurance• Audit
Report Assurance
To have a report assured by the SROI network practitioners must:• Become a member of the network
• Pay approximately $500 for the peer review (this cost will be covered for SROI’s produced through this training IF they are submitted by December 15th.)
Homework
Gather the data required to complete filling in the balance of the Evaluator software
Add in all the qualitative elements needed for a complete SROI
Complete your SROI analysis Present your draft SROI report to
stakeholders for feedback Develop your presentation Consider applying for membership in SROI
Network and trying for assurance
December 15th Presentation Your application included a commitment
checklist with an agreement to complete an SROI report – still an expectation
All participants are expected to attend and present their findings
Assistance with report research and inputting into the Evaluator available until Dec. 10th
Members of the SROI Network will attend as part of a mutual learning exchange
The presentations will run from 9 – 12 (a presenter’s schedule will be emailed)
The location will be the United Way
Presentation Guidelines
Presentation will not exceed 10 minutes; 8 minutes summarizing your SROI analysis; 2 minutes sharing your insights into SROI (as it relates to your project)
We will leave 5 minutes for Q & A Power point projector available – please
email presentations to Anna so that they can be loaded BEFORE the event
Up to you to make hand outs for audience members (no more than 35)
Results will not be published on the Social Enterprise Fund website
Example of Other Training
In case you think you have it hard…. It could be worse
Evaluation
Karen Kerr on Interim Evaluation Results
Plans for the Final Evaluation (tie in to the presentation day?)
Session #4 evaluation