2. Session 1Session 2Session 3Session 4 May 26June 23Sept. 22Oct. 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

3.  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

4.  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

5. Impact = Outcomes MINUS Attribution, displacement and deadweight

6. Total Impact Total Input = SROI

7. Stakeholder Select key beneficiaries - those are the stakeholders who benefit most directly, and indirectly, from your work. Outputs Track the tangible numbers associated with your activity. Outcomes Name the specific changes that will result from your work (from the perspectives of various stakeholders). Indicators Select indicators that measure the outcomes you seek. The indicators need to be expressed in take the form of dollars. Proxies Select 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 Impact Assess 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.

8. Stakeholder If you are starting an employment program with troubled youth. Your stakeholders are youth, funders, and the Solicitor General. Outputs This could include number of people trained through the program; the number of jobs created, etc. Outcomes You may increase income, improve self esteem, reduce reliance on public benefits and reduce EYOC time/recidivism. Indicators You could compare monthly income before and after program participation, changes in welfare payments, days spent in EYOC. Proxies You 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. Impact If 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.

9. VariablesIndicatorsData/Value InputsGrant for one year’s operation $400,000 OutputsNo. 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 employment75% % of Youth with increased self-esteem85% OutcomesYouth: 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 ImpactDeadweight25% Attribution could range from 20% to 30%30%

10. Annual BenefitValueCalculation 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 $ 433,650Sum 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 $ 648,750Sum of 2 lines above Total Benefits Created $ 1,082,400Sum of 2 sub-totals

11. ValueDescription Total benefits Created $ 1,082,400As taken from above Minus deadweight-$ 270,600Used 25% Minus attribution-$ 324,720Used 30% Net Value Created Year 1 $ 487,080 Total benefits minus deadweight and attribution SROI for Year 11.2:1 Net Value divided by Investment (Input) $400,000

12. The basic formula is: Payback Period in Months = Investment. Annual impact * 12 ValueDescription Net Value Created Year 1 $ 487,080 Total benefits minus deadweight and attribution Investment$ 400,000Investment (Input) $400,000 Mo’s to Break Even 10$400,000/$487,080*12 = 10

13.  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

14.  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.

15. 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?

16.  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%

17. IndicatorsDataSource/Description Discount rate3% 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 Rate15%Decline in success rate, year on year

18. ValueDescription Net Value Created Year 1 $ 487,080 Total benefits minus deadweight and attribution Net Value for Year 2 $ 414,01885% of Year One Net Value Net Value for Year 3 $ 351,91585% of Year Two Net Value Net Present Value for 3 Years$ 1,185,197Used 3% discount rate SROI for 3 Years3:1 Net Present Value over 3 years divided by the Input $400,000

19. Check different assumptions and their impact: deadweight, attribution and drop-off financial proxies quantity of the outcome value of non-financial inputs

20. 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?

21. 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

22.  www.socialevaluator.eu www.socialevaluator.eu  Demonstration of how I had to tweak the SROI example (done in excel) to fit the Social Evaluator model

23. The SROI Network is developing an assurance scheme that will include: Accreditation of practitioners Assurance of SROI analyses Verification Assurance Audit

24. 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 15 th.)

25.  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

26.  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. 10 th  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

27. 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

28.  In case you think you have it hard…. It could be worse

29.  Karen Kerr on Interim Evaluation Results  Plans for the Final Evaluation (tie in to the presentation day?)  Session #4 evaluation