SROI Report Card: Year Four October 2005 - September 2006

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TurnAround Couriers: Social Mission Overview

SROI Report Card: Year End 2006

Goals Methods Success Metrics

• Hire couriers and office administrative staff from disadvantaged youth population

• Provide transitional work experience to enable youth to develop employability skills, a resume and a support network

• Enable youth to access the mainstream job market

• Enable youth to stabilize life situation, begin a career path and leave the shelter system

• Recruit youth from youth shelters and youth serving agencies across Toronto

• Provide a real job, not a job training experience

• Establish a supportive management environment

• Assist youth with planning and making next steps regarding housing and employment

• Youth are able to get out of shelter system and into independent housing

• Youth meet or exceed job expectations

• TurnAround helps youth secure next job and establish a career path

• Youth are able to get off and stay off government financial assistance

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Enterprise: TurnAround Couriers Location: Toronto ON Date of Inception: October 2002

Overview of Target Population (sample group)• Youth recruited from 6 different youth shelters and employment service

agencies across Toronto• 64% recruited directly from shelters• 100% male• Average age: 22• 91% unemployed at time of hire• 64% receiving social assistance at time of hire• 73% had been involved with the justice system prior to hire• 73% did not complete high school

Overview of Business• Did not require additional investment and was cash flow positive

• Officially launched on-line courier order service in December 2005

• Grew sales 76% from Year 3

• Royal Bank of Canada continues to be TurnAround’s biggest client

• 6 of Canada’s top law firms (by size) are TurnAround clients

SROI Report Card: Year End 2006

Financial Performance

Total Sales Revenue: $239,000

Total Grants and Subsidies: $0

Total Sales Revenue and Grants: $239,000

Additional Social Support Infrastructure: $0

Total Operating Profit (Loss): $16,000

Total Investment in Year Three: $0

Social Return On Investment

Average Change in Societal Contribution (Target Employees): $7,874

Average Number of Target Employees: 8

Number of Target Employees in Sample Group:

Current Year Cost Savings to Society:

11

$62,992

Cumulative Cost Savings (prior to Y4): $128,178

Total Cost Savings to Date: $191,170

Cumulative Societal Payback Period: 2.08 years

Cumulative SROI: 191%

Employment Outcomes (sample group)• More than doubled average number of target hires from Y3 to Y4

• Increased target/non target staff ratio from 75% to 80%

• Paid out $141,426.00 in target hire wages and courier commissions

• 45% continue to work at TAC

• 27% moved onto mainstream employment in courier industry and office administration

Sustainable Livelihoods Outcomes (sample group)• 100% target population recruited from shelters able to get out of shelter

system and secure independent housing

• 71% who relied on income support through social assistance at time of hire were able to get off and stay off

• Founding Manager encourages target hires interested in TAC operations to get engaged in business strategy and growth to position themselves for operations management roles in the future

• Founding Manager assists target hires to effectively deal with outstanding legal issues they have had in the past

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Definitions and Methodology

Total Investment Required for Year Three

• Represents all cash injections in the business

Average Change in Societal Contribution (Target Employees)

• Difference between the direct societal “cost” or “benefit” contributed by the employee before hire versus after hire

Current Year SROI

• Return on investment generated by the current year change in target employee financial position

Current Year Cost Savings to Society

• Dollars saved that year by employing target group and eliminating or lessening government financial assistance

Societal Payback Period

• The number of years it would take for the social returns to equal the financial investment

Cumulative SROI

• Average social return on investment generated by year 1, 2, 3 and 4 change in target employee financial position

Cumulative Societal Payback Period

• The number of years it would take for the social returns to equal the financial investment made in Y1, Y2, Y3 and Y4 combined

Total operating losses + Grants and Subsidies + Additional Support Infrastructure

= Total Investment Required

Annual Government Financial and/or Social Service Assistance Before Hire - Annual Income Tax Paid Before Hire + Annual Income Tax Paid After Hire

= Average Change in Societal Contribution

Average Change in Societal Contribution / Total Investment Required

=Current Year SROI

Average Change in Societal Contribution x Average Number of Target Employees

The calculation is the inverse of the Current Year SROI or:

Total Investment Required/Total Change in Societal Contribution

Y1 + Y2 + Y3 + Y4 Change in Societal Contribution / Y1+Y2 +Y3 + Y4 Total Investment = Cumulative SROI

Y1+ Y2 + Y3 + Y4 Total Investment / Y1 + Y2 + Y3 +Y4 Total Change in Societal Contribution x 4 years

SROI Report Card: Year End 2006

Data Gathering Process•The sample group was drawn from youth that worked at TurnAround Couriers for two months or more in Year 4

• Target employees complete surveys to obtain socio-economic and sustainable livelihood data

•A second survey is undertaken at six months or a year to determine changes for target employees

•Only target employees who are employed for two months or more are considered for SROI calculations

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