Document 6584068
Transcription
Document 6584068
Session 1 May 26 Guiding Principles Social Value Creation Stakeholders Session 2 Session 3 June 23 Sept. 22 Mapping Financial outcomes Proxies Selecting Establishing Indicators Impact by Predictive vs. Stakeholder Evaluative SROI Session 4 Oct. 27 SROI calculations Preparation for presentation of results 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 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 = Outcomes MINUS Attribution, displacement and deadweight Total Impact = SROI Total Input Stakeholder Outputs Select key beneficiaries - those are the stakeholders who benefit most directly, and indirectly, from your work. Track the tangible numbers associated with your activity. Name the specific changes that will result from your work (from the perspectives of various stakeholders). Select indicators that measure the outcomes you seek. The indicators Indicators need to be expressed in take the form of dollars. Select proxies if you cannot find data that directly corresponds with the Proxies indicators. Data Sources Go to the Social Enterprise Fund website for indicator and proxy data Assess your impact by calculating the deadweight (what would have happened if you hadn't intervened) attribution (how many others Impact contributed to the outcome) and displacement (if relevant) Quantify your Inputs, Outputs, and Outcomes Data Collection Add up all the inputs. Add up all the benefits. Subtract the deadweight, attribution and displacement. Calculate the SROI. Conduct a sensitivity Calculation analysis. Calculate the pay-back period. Project the value into the future Outcomes If you are starting an employment program with troubled youth. Your stakeholders are youth, funders, and the Solicitor General. This could include number of people trained through the program; Outputs the number of jobs created, etc. You may increase income, improve self esteem, reduce reliance Outcomes on public benefits and reduce EYOC time/recidivism. You could compare monthly income before and after program Indicators participation, changes in welfare payments, days spent in EYOC. You may wish to find a proxy to stand in for increased self-esteem Proxies such increase in volunteer hours. SROI database shows that Wild Rose Foundation values Data volunteering @ $15/hr and incarceration costs; welfare rates and Sources employment income from own data base. If 25% of all young offenders gain steady employment without your program, you have 25% deadweight. If you collaborated with 1 Impact other agency, you could attribute 30% of the success to them. See data table on next page. Data Stakeholder Variables Inputs Outputs Outcomes Impact Indicators Grant for one year’s operation No. of youth trained per year Average hours of volunteering per mo. Average employment (in months) % of Youth who do not re-offend (1 yr) % of Youth who found employment % of Youth with increased self-esteem Youth: Average wage based income/mo Youth: Increased self-esteem thru volunteering Funder: Average reduced IS payment/mo Sol Gen: Average reduced stay in EYOC Deadweight Data/Value $400,000 50 7 8 90% 75% 85% $1,850 $15 $583 $10,530 25% Annual Benefit Value $ 555,000 Employee Wages Earned $ (174,900) Less Lost IS Benefits $ 53,550 Increased Self Esteem $ 433,650 Sub-total Benefits to Youth $ 174,900 Welfare benefits Re-allocated 473,850 Young Offender Centre Re-allocated $ $ 648,750 Sub-total Benefits to State $ 1,082,400 Total Benefits Created Calculation $1850 *8 mo* 50 * 75% $583 * 8 mo * 50 * 75% $15 x 7hrs x 8 mo x 50 x 85% Sum of 3 lines above $583 * 8 mo * 50 * 75% $10,530*50* 90% Sum of 2 lines above Sum of 2 sub-totals Total benefits Created Minus deadweight Minus attribution Net Value Created Year 1 SROI for Year 1 Value Description $ 1,082,400 As taken from above -$ 270,600 Used 25% -$ 324,720 Used 30% Total benefits minus deadweight $ 487,080 and attribution Net Value divided by Investment 1.2:1 (Input) $400,000 The basic formula is: Payback Period in Months = Investment . Annual impact * 12 Value Net Value Created Year 1 Investment Mo’s to Break Even $ $ Description Total benefits minus deadweight 487,080 and attribution 400,000 Investment (Input) $400,000 10 $400,000/$487,080*12 = 10 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 chain artificially inflates the value Only count the last link – the end and not the means 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 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? • • What 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% Indicators Data Discount rate 3% Benefit period Drop Off Rate 3 15% Source/Description Time value of money - used Alberta inflation rate from AED website Number of years into the future that we are projecting Decline in success rate, year on year Value Net Value Created Year 1 Net Value for Year 2 Net Value for Year 3 Net Present Value for 3 Years SROI for 3 Years $ $ $ $ Description Total benefits minus deadweight 487,080 and attribution 414,018 85% of Year One Net Value 351,915 85% of Year Two Net Value 1,185,197 Used 3% discount rate Net Present Value over 3 years 3:1 divided by the Input $400,000 Check different assumptions and their impact: • deadweight, attribution and drop-off • financial proxies • quantity of the outcome • value of non-financial inputs 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? 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 www.socialevaluator.eu Demonstration of how I had to tweak the SROI example (done in excel) to fit the Social Evaluator model The SROI Network is developing an assurance scheme that will include: • Accreditation of practitioners • Assurance of SROI analyses • Verification • Assurance • Audit 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.) 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 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 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 In case you think you have it hard…. It could be worse Karen Kerr on Interim Evaluation Results Plans for the Final Evaluation (tie in to the presentation day?) Session #4 evaluation