1. Measuring Social Impact Presented by Joyce Sou Family Services Ontario May 7th, 2013

3. Impact Energy efficiency Prime + 2% Poverty reduction 8% Stronger family relationships Return + Jobs for marginalized populations 1% p.a. over three years Carbonreduction

4. The quest for certainty blocks the search for meaning Erich Fromm If you cannot measure it you cannot improve it Sir William Thompson

5. Not everything that counts can be counted, and not everything that can be counted counts. Albert Einstein

9. 1932 - American Institute of Accountants form Committee on Generally Accepted Accounting Principles 1936 – Canadian Institute of Chartered Accountants form Terminology Committee 1942– Institute of Chartered Accountants in England & Wales publish Recommendations on Accounting Principles 2001 – International Accounting Standards Board is formed

10. Impact Map

11. What is SROI? Social Return on Investment is a framework for measuring and accounting for the valuecreated or destroyed by our activities – where the concept of value is much broader than that which can be captured by market prices.

12. val·ue/ˈvalyo͞o/noun the regard that something is held to deserve; the importance, worth, or usefulness of something the material or monetary worth of something

13. Return on Investment (Net Profit) Cost of Investment ROI =

14. 7 Principles of SROI • Involve stakeholders • Understand what changes • Value the things that matter • Only include what is material • Do not overclaim • Be transparent • Verify the result

15. Case Study: Family Centre • Single-parent or blended families • Experiencing relationship challenges with children • Police involvement • Reported significant stress • Time off work taken

16. 1. Identify stakeholders Involve stakeholders Understand what changes Only include what is material

17. 2. Map outcomes Involve stakeholders Understand what changes Only include what is material

18. 3. Assign indicators and financial proxies Value what matters

19. 2. Map outcomes 1. Identify stakeholders Involve stakeholders Understand what changes Only include what is material

20. 3. Assign indicators and financial proxies 10 * $2,500 = $25,000 Value what matters

21. 4. Establish Impact Do not overclaim

22. Be transparent 5. Calculating SROI Verify the result ($25,000) $15,000 net social benefit SROI = cost of investment = $1.66 For every dollar invested in Family Centre $1.66 of social value is generated.

23. SROI: Challenges and Opportunities • Resource intensive • Difficult to standardize • User knowledge required • Tells full story • Captures material change • Assigns financial value to outcomes