Impact Measurement Rashmi Shekhar Sakshi Chadha

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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