1. Co-Producing Impact Evaluation: Making It Work Sue Holloway, Director July 2013

2. 2 © Pro Bono Economics PBE aims to match professional economists with charities; providing pro bono help to measure performance and understand charity impact, and fostering a culture of volunteering within the economics profession

3. Approaches to Impact Evaluation: what makes cost-benefit analysis work?

4. 4 © Pro Bono Economics Estimating impact Measure outcomes Best estimate of what would have happened anyway (the counterfactual) Outcomes minus counterfactual = impact A measurement minus an estimate = an estimate

5. 5 © Pro Bono Economics Control Groups National average PBE: Foundation Training Company Before PBE: MEAM pilots – adults with multiple needs Matched records in admin dataset Peterborough Social Impact Bond/MoJ datalab Natural experiment in charity data PBE: Barnardos RCT Education Endowment Foundation/Social Research Unit

6. 6 © Pro Bono Economics Whose perspective? Value to society won’t include transfer payments e.g. tax and benefits Value to Exchequer Increase in tax receipts (+) or increase in benefit payments (-) Potential costs avoided Cashable savings Value to individuals change in income including benefits (+)

7. 7 © Pro Bono Economics Which benefits? Hard outcomes Qualifications → employment → lifetime earnings Costs avoided by public services Soft outcomes Early stages of econometric work in this area Related to income, so only for those who are earning SROI uses stakeholders to identify proxies

8. 8 © Pro Bono Economics Which costs and values? Input costs Programme costs Volunteer input Other activities Benefit values Average costs Marginal costs

9. Conversation starters

10. 10 © Pro Bono Economics Questions When do I need a cost-benefit analysis? What are the practical challenges?