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"Impact Measurement at non-profit" module lead by Rashmi Shekhar & Sakshi Chadha from ISB (Diffusion Pune - 2 day residential workshop for non-profit and social enterprises)
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Impact Measurement Rashmi Shekhar Sakshi Chadha
Sponsored by
Impact Measurement is..
http://www.youtube.com/watch?v=NL3uiVeFV4Y
Social Return on Investment: a measure of Impact
Social Return: The monetized impact, minus costs, of an intervention, program, organization, or company
Social investors seek evidence of social impact (social return) that results from their financial investment
They have many different profiles (i.e. philanthropist, venture capitalist, foundation or government)
SROI indicates the value of the social impact in financial terms
Calculating SROI for ‘Computer Literacy’ programme
Input Outputs Outcomes Impacts
INR 150,000 25 People trained in the programme
Direct – 19 people gain long term employment (increased wages, reduced state benefits Paid) Indirect – 15% reduction in healthcare expenditures because of improved sanitation and health awareness
Direct – 17 people gain long term employment (deadweight accounted for) Indirect – 15% reduction in healthcare expenditure
A 5-year timeframe is a standard time horizon to project return on investment Discount rate is the prevailing interest rate, normally 6% – 8 % in India
Calculating SROI for ‘Computer Literacy’ programme
Impact 17 clients Year 1 Year 2 Year 3 Year 4 Year 5
Per client(your student) benefit Employment: to client
5,000 7,000 9,000 12,000 14,000
Employment: to government
6,000 6,800 7,500 8,000 8,500
Reduced healthcare expenditures 12,000 12,000 12,000 12,000 12,000
Total social benefit 23,000 25,800 28,500 32,000 34,500
Your share (33% of total) 391,000 438,600 484,500 544,000 586,500
Present value (PV) of your share (discounted @ 6%)
129,030 144,738 159,885 179,520 193,545
Total PV of your share = 987,221
McKinsey & Company’s
3 steps to designing a Learning Driven Assessment Plan
http://lsi.mckinsey.com/assets/dotcom/swf/flv/extranets/LSI/lda/lda.html
Appendix -I
Nef www.neweconomics.org
London Business School’s SROI Primer
McKinsey & Company http://sso.mckinsey.com/socialimpact
IRIS http://iris.thegiin.org/
PULSE http://www.app-x.com/products/pulse
A link specifying which organization uses what kind of measures http://trasi.foundationcenter.org/browse_toolkit.php