The Art of Assigning Specific Dollar Values to Previously Ignored Social Impacts: A Course in SROI Modelling
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The document presents a course on Social Return on Investment (SROI) modeling by Bea Boccalandro, emphasizing the need to assign dollar values to social impacts that are often overlooked. It covers the basics of measuring social benefits, the challenges in monetizing them, and offers examples of successful SROI outcomes. The course aims to equip participants with tools to measure, manage, and monetize social impacts effectively.
![Findings: How $1 of Corporate Responsibility
(appears to) generate >$1 of social value
Valuation of
organizational outcomes*
To otherwise achieve the
organizational outcomes PwC
helped them achieve,
respondents say they would
have had to expend, on
average, between:
$[ ]
(low estimate)
and
$[ ]
(high estimate)
* In SROI these were adjusted
down 15% to account for
deadweight/attribution and
double counting.
Services
Estimated average volunteer
hours per NPO:
+ [ ] pro-bono
+ [ ] other skills-based
+ [ ] extra-hands
Applied, with grants, to
develop:
• Strategies
• Tools
• Systems
• Other
To help the nonprofit better
accomplish its social mission
Inputs
Average PwC investment
per key NPO (including
employee time)
Cash: $[ ]
Fee waived
engagement:$[ ]
Other volunteering:
$[ ]
TOTAL: $[ ]
Organizational outcomes
• [ ] Improved organizational
effectiveness
• [ ] Increased number of
individuals served
• [ ] Improved organizational
innovation
• [ ] Additional service offered
• [ ] Increased awareness/support
for organization’s work
• [ ] Increased staff competencies
Offer higher quality services
• [ ] More revenue secured (other
than from PwC)
• [ ] Reduced costs
Are used to
to offer: That led to With a monetary value, as follows:](https://image.slidesharecdn.com/9-151006212333-lva1-app6891/85/The-Art-of-Assigning-Specific-Dollar-Values-to-Previously-Ignored-Social-Impacts-A-Course-in-SROI-Modelling-51-320.jpg)
The Art of Assigning Specific Dollar Values to Previously Ignored Social Impacts: A Course in SROI Modelling
- 1. The Art of Assigning Specific Dollar Values to Previously Ignored Social Impacts: A Course in SROI Modeling Bea Boccalandro, VeraWorks @bboccalandro
- 2. The Art of Assigning Specific Dollar Values to Previously Ignored Social Impacts: A Course in SROI Modeling October 6, 2015 A presentation by Bea Boccalandro, President, VeraWorks bea@veraworks.com 717-414-2885 www.veraworks.com @bboccalandro For
- 3. IMPACT 2030 is a global, private sector led initiative, developed to align companies and their employee volunteer actions with the Sustainable Development Goals to create real and sustainable change.
- 4. IMPACT 2030
- 6. Will you lead the measurement effort? no
- 7. Similar to the ROI, the Social Return on Investment (SROI) is a ratio of benefits to costs, only in this case the return is social / societal, not financial: SROI = Social benefit per 1 unit of costs Detailed SROI = Social benefit (net of deadweight), monetized and (if desired) adjusted for inflation resulting from 1 unit of investment, monetized and adjusted for inflation E.g. an SROI of 3:1 indicates that an investment of $1 delivers $3 of social value What is Social Return on Investment?
- 8. SROI = Social benefit (net of deadweight), monetized and (if desired) adjusted for inflation resulting from 1 unit of investment, monetized and adjusted for inflation
- 10. Measure social benefits???? Monetize it???? Show causality????
- 11. SROI = Social benefit (net of deadweight), monetized and (if desired) adjusted for inflation resulting from 1 unit of investment, monetized and adjusted for inflation
- 12. Is it feasible for you to generate, in the next six months, SROI (dollar value of social benefit generated per dollar invested in social impact)? 1. Highly infeasible 2. Infeasible 3. Feasible 4. Highly feasible Poll
- 13. Leave better equipped to better measure, and monetize, social impact Session objective
- 14. • Introduction ✔ • Determining scope • Measuring social benefits • Managing the causality issue • Monetizing social benefits • Closure Content
- 15. All enterprise activities s One product All social purpose efforts Scope of the social impact measurement One project
- 16. • Introduction ✔ • Determining scope ✔ • Measuring social benefits • Managing the causality issue • Monetizing social benefits • Closure Content
- 18. Something
- 19. Release the burden of perfect measurement
- 20. Examples of SROI results 56 : 1 1.57 : 1 Project Brigade Caesars Entertainment operates in a manner that converts every $10 million in revenue into $4.6 million in social value 2.72 : 1
- 21. Theory of change / logic model A theory of change model, or logic model, is map of the sequenced pre-conditions needed to -- or steps required to -- achieve a desired change. Although there are conceptual differences between theory of change and logic models, it’s not productive to go into these. Start with…
- 22. Pepsico Theory of Change (w/ help from True Impact) Source: Pepsico, Delivering Access to Water Through Partnerships, 2014.
- 23. Project Brigade program theory of change Source: PwC, Making a difference: The social impact of Brigade, 2015.
- 24. Options for measuring social benefits 1 Measure ultimate beneficiary outcomes / impact Can be monetized and turned into SROI
- 25. • Trained judgment • Qualitative research • Quantification surveys/efforts Approaches to measuring social impact Our focus Adapted from: Epstein, Marc J. and Kristi Yuthas, Measuring and Improving Social Impacts: A Guide for Nonprofits, Companies, and Impact Investors, 2014.
- 26. Project Brigade social impact Source: PwC, Making a difference: The social impact of Brigade, 2015.
- 27. Project Brigade social impact Source: PwC, Making a difference: The social impact of Brigade, 2015.
- 28. Project Brigade Source: PwC, Making a difference: The social impact of Brigade, 2015. 1.57 : 1
- 29. Measure social benefits???? But, I have an “unmeasurable” impact!
- 30. Three ways to measure impact: • Measure directly • Measure an output that has been shown to predictably lead to impact • Use indicators Measuring social impact (no matter how murky and abstract)
- 31. An expression of something not directly measurable that is directly measurable Indicators
- 32. What is the SROI of our mentoring?
- 33. Every $1 invested generates $2.72 of value to society
- 34. 2.72 : 1 Source: Paul A. Anton, Wilder Research, Prof. Judy Temple, University of Minnesota. Analyzing the Social Return on Investment in Youth Mentoring Programs, 2007.
- 35. What is the societal value of reuniting one homeless child with her family?
- 36. Source: “MEASURING RETURN, The Operation Come Home Reunite Program” by MeasuredOutcome, 2012. Every $1 invested in reuniting homeless youth with families generates $56 of value to society
- 37. 2.72 : 1 Source: MeasuredOutcome, Bridging the gap, 2012.
- 38. GPA We live awash in indicators! Miles per gallon GDP
- 39. How a survey question becomes a measure of social impact which is/are… Indicator Impact/Outcome Meaningful social change is expressed as an… which is expressed as an… Item(s) in an Instrument
- 40. A company that lacks compelling quantitative evidence that its social cause efforts generate meaningful impact but cannot fund such measurement work needs to reduce its social cause work (e.g. serve fewer people / do less) to fund the measurement Agree – reduce services and measure Disagree – do not reduce services and do not measure
- 41. • Accountability: Know if making a difference • Learning: Determine what works / what doesn’t • Relationships: Recruit / maintain supporters Why measure social impact?
- 42. Those we serve deserve that we do our best to ensure we are not causing them more harm, wasting their time or squandering their hopes.
- 43. • Accountability: Know if making a difference • Learning: Determine what works / what doesn’t • Relationships: Recruit / maintain supporters • Ethics: Not measuring social impact is a form of injustice Why measure social impact?
- 44. Measure social benefits???? Monetize it???? Show causality????
- 45. Too far from the customary. Too murky.
- 46. Will you lead the measurement effort? yes
- 47. • Environment • Education • Other youth • Basic human needs • International development • Arts • Advocacy Getting into groups
- 48. • In your groups, each come up with a social impact you want to measure and, as a group, brainstorm possible indicators for each impact • If your groups can’t come up with a reasonable indicator for any of the impacts, take note (class will help) • Bonus points: Come up with a way to monetize one or more indicators • Take 15 minutes • This exercise works best if you spend at least a few minutes outdoors breathing fresh air Applying this to your case
- 49. Measure organizational impact Options for measuring social benefits 2 1 Measure ultimate beneficiary outcomes / impact Either can be monetized and turned into SROI
- 50. Twelve US nonprofit partners of the PwC and the PwC Charitable Foundation (referred to collectively as “PwC”) were invited to complete a survey designed to capture organizational impact. The responses were anonymous vis-à-vis PwC (data was managed and analyzed by a third party, so no one at PwC saw individual responses) The third-party researcher conducted follow-up interviews with respondents to identify any threats to the validity in the data and determine the feasibility of this process for collecting social impact data. The experiment: Description of the pilot nonprofit impact survey and analysis
- 51. Findings: How $1 of Corporate Responsibility (appears to) generate >$1 of social value Valuation of organizational outcomes* To otherwise achieve the organizational outcomes PwC helped them achieve, respondents say they would have had to expend, on average, between: $[ ] (low estimate) and $[ ] (high estimate) * In SROI these were adjusted down 15% to account for deadweight/attribution and double counting. Services Estimated average volunteer hours per NPO: + [ ] pro-bono + [ ] other skills-based + [ ] extra-hands Applied, with grants, to develop: • Strategies • Tools • Systems • Other To help the nonprofit better accomplish its social mission Inputs Average PwC investment per key NPO (including employee time) Cash: $[ ] Fee waived engagement:$[ ] Other volunteering: $[ ] TOTAL: $[ ] Organizational outcomes • [ ] Improved organizational effectiveness • [ ] Increased number of individuals served • [ ] Improved organizational innovation • [ ] Additional service offered • [ ] Increased awareness/support for organization’s work • [ ] Increased staff competencies Offer higher quality services • [ ] More revenue secured (other than from PwC) • [ ] Reduced costs Are used to to offer: That led to With a monetary value, as follows:
- 52. Confidential follow up interviews (no one at PwC received respondents-specific data) with respondents suggest that: • While the survey was considered moderately burdensome (4.9 where 0=not at all and 10= extremely burdensome) taking an average of 2.7 hours to complete, it was nevertheless considered worthwhile (8.1 where 0=not at all and 10= extremely) and fairly clear (7.4) • The vast majority (83%) of pilot nonprofit partners are willing and able to complete this survey annually (17% said they currently don’t have the capacity) • While many nonprofit partners are not comfortable providing a specific monetary estimate of the expenditures they would have had to incur to alternatively achieve the organizational capacity gains PwC allowed them to achieve, they usually can (and did) provide what they considered a valid range Findings: Nonprofit survey appears to be a feasible ongoing social impact measurement
- 54. Measure organizational impact Options for measuring social benefits 2 1 3 Measure ultimate beneficiary outcomes / impact Measure activities / outputs Any can be monetized and turned into SROI
- 55. How can we monetize the social value of our corporate social responsibility?????
- 56. Our presence is associated with twice the societal benefits of the average company
- 57. • Introduction ✔ • Determining scope ✔ • Measuring social benefits ✔ • Managing the causality issue • Monetizing social benefits • Closure Content
- 59. • How important is it, really? • Is “proof” necessary? • It is (almost always) possible to measure causal effect – Quasi-experimental design – Regression analysis Managing causality
- 60. Managing the causality issue - discussion What have you done that works? What doesn’t work? Where are we stuck?
- 61. • Introduction ✔ • Determining scope ✔ • Measuring social benefits ✔ • Managing the causality issue ✔ • Monetizing social benefits • Closure Content
- 62. Monetize it????
- 63. Oh. Forgot that we already have! Monetize it???? $ $ $ $ $
- 64. Examples of monetization proxies Source: Social Value, “A Guide to Social Return on Investment,” 2012.
- 65. • Introduction ✔ • Determining scope ✔ • Measuring social benefits ✔ • Managing the causality issue ✔ • Monetizing social benefits ✔ • Closure Content
- 66. range The beauty of the…
- 67. One more example
- 68. “Relentless Monetization” Step 1 Identify impacts / outcomes
- 73. Social Impact Measurement Resources
- 75. Social Value
- 76. • Foundation Center’s TRASI: http://trasi.foundationcenter.org • Social Value (UK): http://socialvalueuk.org • Sustainable Brands • Others? Social Impact Measurement Resources
- 77. Is it feasible for you to generate, in the next six months, SROI (dollar value of social benefit generated per dollar invested in social impact)? 1. Highly infeasible 2. Infeasible 3. Feasible 4. Highly feasible Poll
- 78. It’s impossible to be highly effective without first being profoundly human