1. Value for Your Dollar: The Social Enterprise Impact Assessment Project

2. Introduction  Joanne Norris – Social Capital Partners  David LePage – Enterprising Non-Profits  Liz Lougheed Green – Potluck Café Society  Deanne Ziebart – Developmental Disabilities Assoc

3. Presentation Timing Introduction (5 mins) Canadian Social Enterprise Context (5 mins) Project context and history (5 mins) Key learnings (40 mins) Next steps: phase 2 (5 mins) Facilitated discussion (30 mins)

4. Social Enterprise – Community Investment Markets Spectrum Funding options for social initiatives can be arrayed along a spectrum depending the degree of focus on social vs. financial outcome Grant Funding Investment Funding Social Service Social Enterprise Increasing focus on financial outcomes Focus on social mission Success defined more qualitatively Difficult outcome measurement Uses of funding restricted Focus on ROI Success defined more quantitatively Established measurement criteria Relatively Unrestricted funding

5. Canadian Social Enterprise – Community Investment Context  Access to risk capital for social entrepreneurs in Canada has been limited to traditional non-profit relative to entrepreneurs in other countries (the US in particular) Venture Philanthropy CDVCTraditional Foundations Venture Capital / Private Equity Government Funding Community Loans Social ServiceSocial Enterprise Canada UK United States Area of Strength Because risk capital is essentially non-existent in Canada, entrepreneurship and creativity are stifled

6. Project Context and History Potluck working on issues not addressed by Canadian social policy Wanted to show impact with a view to building: –Supportive Policy –Partnerships with government and other funders Searched for partnerships with both funders and practitioners to develop a universal SIA Tool Set goal to develop SIA tool proposal Built structure to guide proposal

7. Alignment with Funder Three key points: Contributes to creation of 'blended value' businesses [Vancity] Expands support for social enterprises [Vancity and ENP] Collaboratively generates research and evaluation tools for investors and funded groups [ENP]

8. Need for a Shared SEIA Measurement Framework Desire and need to develop similar understanding among operators and investors Get operators and investors speaking the same language Establish commitment to measuring what both stakeholder groups value

9. Why Are We Here? Building shared vision and goals amongst stakeholders Generating Common goals –Why Social Impact Assessment –What did the major stakeholder groups want to achieve Developing common language e.g. definitions and terms –Social Enterprise Definitions –Typology –Canadian Social Economy framework development –Blended value Build collaborative process with outcomes that satisfy all stakeholders. –Undertaking the stakeholder interviews –Literature review –Proposal development process

10. Key Research Learnings Social Enterprise Operators: Stakeholder Interviews (17) Currently multiple definitions of success Wide range in current organizational success measurement Purpose often to generate revenue for parent organization and to fulfill at least one aspect of the social mission e.g. employment. Reporting focused on financials rather than social outcomes. Frustration at not having methods and tools for reporting and assessing the scope and impact of their social activities. A standardized SIA framework used by both social enterprises and investors is a good idea. Most SE organizations are interested in assessing social impact.

11. Key Research Learnings Social Enterprise Investors: Stakeholder Interviews (10) Success defined in various ways. Often based on reported achievements of investee No consistent process to assess potential or achieved impact Current short-term, grant funding acknowledged as inadequate Want shared and consistently used methods and metrics to: –Inform and influence strategies and goals –Create awareness of investment impacts –Advocate for the work being done Vision for a standardized SIA framework that different types of SE investors can use Acknowledge that SIA will have to come out of the organizational goals of both SE operators and investors and are eager to collaborate

12. Phase 1 – Outputs Literature Review –Extensive review of the literature provided proposal and interview foundation –SIA Project Literature Review now complete and will soon be available online Stakeholder Interviews –With representatives from 16 Social Enterprise orgs and 9 social investors –Phase 2 project proposal built on interview data –Stakeholder interview proposal completed and will be available online... Phase 2 Proposal –Used literature review, stakeholder interviews and advisory committee input to build comprehensive proposal for implementation of Phase 2 SIA Tool pilot: Target group and project beneficiaries – social enterprise operator and investor organizations. Project location will be primarily British Columbia, with national participants Project Duration is one year Literature Review and Stakeholder Interview Report will both be available at www.enterprisingnonprofits.ca on May 15, 2006www.enterprisingnonprofits.ca

13. Phase 2 – Going Forward Where is Phase 2 is at now –Proposal going forward –Additional funders engaged –Phase 2 underway in 2006 Why this phase has engaged additional funders –Thoughtful process that funders will more clearly see the full impacts of their investments Anticipated outcomes –Long-term learning process that begins with developing the pilot with SE’s and funders/investors –Vision to establish an impact measurement tool that is universally recognized and used across Canada

14. Discussion Questions? Costs: Social costs, business costs, performance measurement costs – who should pay for what? How to develop ownership and support among key stakeholder groups in the quest to create a universal impact assessment tool? Hurdles to implementation?