1. BIG SOCIETY CAPITAL SOCIAL IMPACT OVERVIEW Marcus Hulme, Social Impact Director February 2016

2. AGENDA 1.Overview of Big Society Capital 2.Assessing social impact 3.Planning and measuring social impact 4.Case studies

3. ABOUT BIG SOCIETY CAPITAL Big Society Capital is an independent financial institution with a social mission, set up to help grow the social investment market. Our remit is to grow the social investment market in the UK. We do this by making capital available to social finance intermediaries who in turn fund frontline organisations. We also act as a market champion to build understanding and capacity across social enterprises, charities and government around the use of repayable capital in delivering social outcomes

4. OUR INVESTMENTS

5. EARLY CONSIDERATIONS FOR TAKING ON INVESTMENT Purchasing/refurbishing assets Working capital (e.g. to support payments by results contract) Bridging finance (e.g. confirmed grant) Expand existing activities/ deliver new services Government contract Rental income Membership fees Donations OrganisationActivitiesOutputsOutcomesImpact WHAT DO YOU NEED INVESTMENT FOR? IS THERE AN INCOME STREAM? WHAT SOCIAL IMPACT ARE YOU SEEKING TO CREATE?

6. WHAT AN INVESTOR WILL LOOK FOR IN ASSESSING IMPACT

7. PURPOSE OF MEASURING IMPACT To assess your social impact and the difference achieved for people and communities. To measure efficiency and effectives of an organisation. To have data to help improve your organisation. To report back to investors, funders and stakeholders. To celebrate success for communications/ PR. To influence other organisations policy, practice or investment decisions. To compare your work against similar organisations. To generate further investment. To share good practice, learn and innovate. To understand negative or unintended consequences

8. PLANNING SOCIAL IMPACT MISSIONOUTCOMESACTIVITIES EVIDENCING IMPACT & LEARNING What problem do you want to address? What is the context and evidence? What change do you want to make and for whom? Does your mission reflect the need? What changes are you trying to achieve? Do your outcomes logically address the need? Are they realistic and achievable? How do your activities reflect your mission and outcomes? Is there a clear ‘impact chain’ between your activities and outcomes? Have you involved beneficiaries in shaping your services? Have you set clear indicators to measure change? How are you progressing? How are you learning and improving? changing?

9. PLANNING TRIANGLE

10. EXAMPLE THEORY OF CHANGE

11. TRACKING PROGRESS Indicators Indicators help you to understand the extent of change being achieved by your organisations and track progress. Indicators should link to your outcomes and be specific, proportionate, practical, useful and relevant. A good way to set your indicators is by asking yourself: how will we know the change is happening? Methods to gather data include surveys, focus groups, observation and analysing secondary data, plus many more. There are lots of existing indicators you can use from websites such as the Global Values Exchange: http://www.globalvaluexchange.org/http://www.globalvaluexchange.org/ A good impact measurement plan should include details of aim, outcome, activities, targets, methods of data collection, responsibility for data collection and frequency of reporting.

12. MEASURING SOCIAL IMPACT OUTCOMES MATRIX General Public / All Long-term unemployed Homeless people Addiction issues Long-term health issues, life threatening or terminal illness Living in poverty/are financially excluded Learning disabilities or mental health needs Physical disabilities or sensory impairment Vulnerable young people and NEETs Vulnerable parents Vulnerable children Voluntary carers Elderly (including those with dementia) Ex- offenders Experienced crime or abuse

13. WRITING YOUR IMPACT REPORT Include a summary for the quick reader Clearly outline your mission, the needs you are addressing and the context for your work. Briefly outline your method for collecting data (e.g. surveys, case studies, focus groups). Outline your activities and results including data from indicators and a narrative explaining what has happened and any differences between planned and actual results.. Use headings to break up the text and infographics, graphs, quotes or pictures if possible to bring the findings to life. Include any unintended outcomes or wider impact that has happened which was not expected.. Detail any lessons leaned and how you will build on them. Include your plans for the future and any issues that may affect them..

14. COMMUNICATING IMPACT EVIDENCE Identify who you are trying to influence. Engage key stakeholders from the outset. Use appropriate methods for measuring impact. Be responsive to the external context. Build on existing evidence. Tailor findings and communications to different audiences. Include case studies of beneficiaries. Have a clear ongoing communications strategy. Link evidence to the wider context. Highlight cost savings/ benefit where possible.

15. IMPACT RESOURCES Content on our website: www.bigsocietycapital.com 1.Our Social Impact approach 2.Investor best practice 3.Social sector guidance 4.Social Impact FAQs 5.Social Impact Resources 6.Social Impact Reports 7.Social Impact Providers 8.Outcomes matrix

16. TEN TIPS FOR GOOD IMPACT MEASUREMENT Have a dedicated point person who is responsible for measurement. Set aside appropriate resources for measurement. Develop a clear impact measurement plan which links to your strategy or theory of change. Only gather information which is useful and relevant. Ensure good evidence is used to drive decision making and is engrained in your organisations DNA. Identify the audience you want to influence and how you will communicate with them. Avoid lengthy reports and keep findings snappy and engaging. Challenge your investors or funders if you feel their reporting requirements are too much for your organisation – they may agree to compromise. Use existing indicators or measures where possible which can help with comparability. Used mixed methods so you gather both numbers and stories. Keep it all simple.

17. QUESTIONS How do you currently measure your impact? Do you have any tips about impact measurement to share with the group?

18. TO INCREASE INCOME FROM FUNDRAISING IMPACT The increased income as a result of the investment will be used to pay for key programmes, including training parent befrienders to run peer support groups for parents with severely disable children. SOLUTION In 2011 Scope launched a £20m social investment programme in order to finance the an expansion of its sustainable income streams such as charity shops and fundraising. REVENUE MODEL Scope issued a fixed coupon bond, underwritten using investment from Big Society Capital via The Social Investment Market CIC. PROBLEM Scope is a national disability charity and wished to access capital in order to finance the expansion of its charity shop network and fundraising programmes. CASE STUDY: SCOPE BOND ISSUE

19. TO BUY A BUILDING IMPACT Furnistore took out a mortgage to buy their own premises. With a permanent base, they can now run their business selling second-hand furniture and provide emergency support to those that need it most in their community. SOLUTION Furnistore works with local agencies in Redhill to help families get furniture and household appliances at a significant discount or no cost. REVENUE MODEL Furnistore sells second-hand furniture to the general public. This enables them to provide support to low income families and to repay their mortgage. PROBLEM Families who find themselves in difficult or emergency situations often lack the basic essentials to set up a home. CASE STUDY: FURNISTORE

20. TO GENERATE INCOME TO INVEST IMPACT Factory Skatepark has over 21,000 registered people who use the facilities and services offered. There were 1,722 attendances at homework clubs, 1,130 attendances at community outreach events and 1,052 attendances at youth clubs. SOLUTION Factory Skatepark engages young people through extreme sports and provides homework clubs, youth clubs, volunteering programmes and peer-to-peer education and stewardship. REVENUE MODEL Factory Skatepark will repay the investment through income generated by the business such as admission fees to Factory Skatepark and Fun Factory (a children’s soft play centre). PROBLEM Young people with low self-esteem, low educational attainment and a lack of role models are more likely not to make the transition into work, training or further education. CASE STUDY: FACTORY SKATEPARK

21. TO EXPAND SERVICES IMPACT London Early Years Foundation was able to expand beyond its original Westminster borders, to cover all of London, with 48% of their places offered for free. They also offer support to parents to enable them to extend their child’s learning at home. SOLUTION High quality early years education sets a child up for life, reducing the gap for those from disadvantaged backgrounds. London Early Years Foundation runs nurseries in some of London’s most disadvantages areas to provide affordable nursery places for those in need. REVENUE MODEL Bridges Ventures and Big Issue Invest worked together to invest 1.25M, enabling London Early Years Foundation to expand its vision, with an aim of reaching 5000 children by 2017. PROBLEM Many people find they are unable to afford to keep working once they have a child due to high cost of childcare. CASE STUDY: LONDON EARLY YEARS FOUNDATION

22. TO BUY A BUSINESS IMPACT As well as improving the quality of care received by the 13 beneficiaries at the home, Harrogate Skills 4 Living improved profits from the care home. They are able to reinvest this in their other services, like cookery classes and skills for employment courses to empower people with learning disabilities to be independent. SOLUTION Harrogate Skills 4 Living provides adult day care, adult education, leisure courses and transitional support for those leaving education, all tailored to the needs of those with learning disabilities. Their aim is to enable those they help to lead fulfilling lives. REVENUE MODEL SASC Community Investment Fund provided a loan that helped Harrogate Skills 4 Living purchase a care home with 13 beneficiaries, and make significant improvements to the home. PROBLEM People with a disability or learning difficulty frequently have difficulties with living their life independently, due to lack of support or opportunities. CASE STUDY: HARROGATE SKILLS 4 LIVING

23. www.bigsocietycapital.com Big Society Capital Limited is registered in England and Wales at Companies House number 07599565. Our registered office is 5th Floor, Chronicle House, 72-78 Fleet Street, London EC4Y 1HY. Big Society Capital is authorised and regulated by Financial Conduct Authority number 568940.