SROI presentation for DTA Sept 09, Sally Cupitt and Jeremy Nicholls

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Social Return on Investment Jeremy
Nicholls Chief Executive The SROI Network Sally
Cupitt Senior Consultant Charities Evaluation
Services
SROI presentation for DTA Sept 09, Sally Cupitt
and Jeremy Nicholls
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The Measuring Social Value project
SROI presentation for DTA Sept 09, Sally Cupitt
and Jeremy Nicholls
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GDP per head
2000
1800
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What is Social Return on Investment?

• A framework to measure and account for the value
  you create
• A lot in common with other approaches, but in
  particular SROI
• has a strong emphasis on stakeholder involvement
• includes all costs and all outcomes (social,
  environmental and economic, unexpected and
  negative)
• addresses causality
• uses financial proxies to value outcomes

SROI presentation for DTA Sept 09, Sally Cupitt
and Jeremy Nicholls
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Using proxies

• Using financial proxies enables you to
• reveal value
• weight according to stakeholder views
• compare value of outcomes, to inform discussion
  and help project management
• add outcomes up, and look at overall performance
  over time
• Remember its not just about the ratio its a
  story of change

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SROI example Fab Pad

• Run by Impact Arts, Fab Pad supports young
  homeless people to sustain new tenancies. The
  SROI evaluation carried out on Fab Pad revealed
  that for every 1 invested by the government in
  support, 8.38 of social return was derived in
  reduced health care costs, reduced welfare
  benefits expenditure and reduced costs of repeat
  homelessness.
• As a result of their SROI, Fab Pad have gained
  follow-on funding support for the programme,
  developed a higher profile with their main
  partners and funders, and have begun applying
  SROI to other aspects of their business as a
  strategic management tool.

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The stages in an SROI

• Establishing scope and identifying key
  stakeholders
• Mapping outcomes
• Evidencing outcomes and giving them a value
• Establishing impact
• Calculating the SROI
• Reporting, using and embedding

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Stage 3a evidencing outcomes
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Stage 3b giving outcomes a value
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Stage 4 establishing impact

• In SROI, impact is about how much of the
  outcomes achieved can be said to be brought about
  by your activities.
• Impact is usually an estimate. To help you make
  an informed calculation of impact you need to
  take into account two main things
• Deadweight
• Attribution
• Impact is outcomes minus deadweight and
  attribution.

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Stage 5 calculating the SROI

• The main steps in calculating an SROI can be
  summarised as
• Assess how long the impact lasts
• Calculate the ratio
• Do sensitivity analysis

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Making the most of SROI

• To make the most of SROI, consider
• The resources and skills you will need
• Whether you already have outcomes data
• Whether you are prepared to act on the findings
• Whether this is appropriate to your organisation
  and its funders

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SROI can help third sector organisations

• Promote their work and attract funding
• Improve communication with funders, investors and
  commissioners
• Improve their services
• Manage their work to achieve best possible
  outcomes
• Improve stakeholder involvement
• Improve their monitoring and evaluation

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SROI can help funders, investors and
commissioners

• Improve their understanding of value
• Evaluate proposals
• Develop a better understanding of what end users
  most value
• Improve communication with those they
  fund/commission
• Help funded/commissioned services improve their
  outcomes
• Evaluate performance over time

SROI presentation for DTA Sept 09, Sally Cupitt
and Jeremy Nicholls
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SROI and Development Trusts

• Asset Transfer
• Community Share schemes
• Payment for public service outcomes

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Further information

• For more information on
• the MSV project go to www.cabinetoffice.gov.uk
• SROI go to www.thesroinetwork.org
• CES go to www.ces-vol.org.uk/
• To download the new Guide to Social Return on
  Investment
• www.thesroinetwork.org/component/option,com_frontp
  age/Itemid,1/

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The SROI guide