Cara Community Services -Social Return on Investment
Funder`s often expect organizations or specific projects to demonstrate value for money before or after funding.
SROI was developed from social accounting and cost benefit analysis. It is distinct from other approaches as it places a monetary value on outcomes. These are added up given a value and compared to the investment made to provide a ratio.
We can conduct a range of assessments for specific projects.
There is an appetite among all types of funder`s to understand and compare the impact their funding has upon needs mainly from an economic and social perspective. They are particularly interested `combined` impacts covering both capital and revenue investment but also the environmental impact as part of the commitment to `green` issues.
We can provide robust reports which will cover basic principles of SROI including involving stakeholders; evidencing changes; value relevant material outcomes; demonstrate transparency and provide an independent verification of the exercise. We can therefore demonstrate to all stakeholders and funder`s the true value of the work; the positive and negative outcomes; useful quality information; the best optimal partnerships to follow; and future work streams.
We can provide a retrospective analysis of any project once in operation and utilizing key Indicator data.
We can also provide an assessment of the likely impact of any new project that you may be planning or seeking funding for.We help organizations account for their achievements whilst also linking into competitive procurement or fundraising for new resources.
Our checklist for SROI analysis
Stage 1: Establishing scope and identifying stakeholders
We will provide background information on the organisation and the project. We will determine if we are analysing the social return in relation to a specific source of income or for activities funded by a number of sources. We have to decide whether this is an evaluation of the past or a forecast of the future and what timescale to cover. We will identified the resources needed (e.g. sufficient time, resource and skills) and the list of your stakeholders.
Stage 2: Mapping outcomes
We will complete an Impact Map for stakeholders and what you think happens to them. For each stakeholder, we will detail their contribution (input) to the activity (some stakeholders may not make an input) and give the inputs a value include whole costs of delivering the service (e.g. overheads, staff, rent etc). We will identify the inputs and outputs for the stakeholders. We will include a description of the outcomes intended and unintended changes, positive and negative changes.
Stage 3: Evidencing outcomes and giving them a value
We will identify indicators for the outcomes including how long the outcomes last? We often already have information in relation to each indicator. For each outcome where we will record one or more indicators, we will include the reason in the report. We will record or forecast the amount of change in relation to each indicator. We will seek a financial proxy for each outcome.
Stage 4: Establishing impact
We will ascertain information for deadweight in relation to each outcome? We will examine any of estimates for deadweight by reference to displacement or attribution. If some deadweight can be explained by displacement, we may decide to add a new stakeholder (and/or change the scope). If there is attribution, we will ascertain if this mean that we have missed out contributions made by other stakeholders who should now be added.
If the outcomes last for more than one time period, we calculate what happens to the outcome over this time period (drop-off)? We calculated impact (indicator multiplied by financial proxy minus percentages for deadweight, displacement and attribution). We calculate any drop-off? As a result, we know if there any changes where the activity (ies) in the scope do NOT contribute to a significant change?
Stage 5: Calculating the SROI
We set out the financial values of the indicators for each time period and
selected a discount rate. We look to establish a total value for the inputs.
We will calculated:
a) social return ratio,
b) net social return ratio,
c) the payback period.
We will check the sensitivity of your result for amounts of change,
financial proxies, and measures of additionality.
Stage 6: Reporting, using and embedding
We will plan to communicate your value in formats that meet our audiences’ needs. If we decided to produce a full report, it will include an audit trail of all decision-making, assumptions and sources. In a full report, we will included a
qualitative discussion of the assumptions and limitations underlying our analysis.
If your require any further information or assistance please contact john Brennan on 01803852270 or email firstname.lastname@example.org for a free confidential discussion.