1. Measuring Social Impact Presented by Joyce Sou Family Services Ontario May 7th, 2013

3. Impact + Poverty reduction Carbon reduction Jobs for marginalized populations Stronger family relationships Energy efficiency 1% p.a. over three years Prime + 2% 8% Return

4. If you cannot measure it you cannot improve it Sir William Thompson The quest for certainty blocks the search for meaning Erich Fromm

5. Albert Einstein Not everything that counts can be counted, and not everything that can be counted counts.

9. 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

10. Impact Map

11. 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.

12. val·ue/ ˈ valyoo/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 13 ROI =

14. 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 15

16. Stage 1 StakeholdersIntended/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

17. Stage 2 InputsOutputsThe 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

18. Stage 3 IndicatorSourceQuantityFinancial ProxyValue $Source 3. Assign indicators and financial proxies Value what matters

19. Stage 1 Stage 2 Stakeholders Intended/unintended changes InputsOutputsThe 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? ChildrenLess outburstsTime$0.00Counseling services Feel more confident in relationships with family 1. Identify stakeholders 2. Map outcomes Involve stakeholders Understand what changes Only include what is material

20. 10 * $2,500 = $25,000 Stage 3 IndicatorSourceQuantityFinancial ProxyValue $Source Foster care avoidedInternal Data10 youth Monthly maintenance payment $2,500 per year/youth Internal Data 3. Assign indicators and financial proxies Value what matters

21. 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% $25,000 Do not overclaim

22. ($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

23. SROI: Challenges and Opportunities Resource intensive Difficult to standardize User knowledge required Tells full story Captures material change Assigns financial value to outcomes