Impact Measurement for non-profit @ Diffusion Pune 2012

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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 for non-profit @ Diffusion Pune 2012

  1. 1. Sponsored byImpact Measurement Rashmi Shekhar Sakshi Chadha
  2. 2. Impact Measurement is..http://www.youtube.com/watch?v=NL3uiVeFV4Y
  3. 3. 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
  4. 4. Calculating SROI for ‘Computer Literacy’ programme Input Outputs Outcomes ImpactsINR 150,000 25 People trained in Direct – 19 people gain long Direct – 17 people gain long the programme term employment (increased term employment wages, reduced state benefits (deadweight accounted for) Paid) Indirect – 15% reduction in Indirect – 15% reduction in healthcare expenditure healthcare expenditures because of improved sanitation and health awareness
  5. 5. Calculating SROI for ‘Computer Literacy’ programme Impact 17 clients Year 1 Year 2 Year 3 Year 4 Year 5Per client(your student) benefit 5,000 7,000 9,000 12,000 14,000Employment: to clientEmployment: to government 6,000 6,800 7,500 8,000 8,500Reduced healthcare expenditures 12,000 12,000 12,000 12,000 12,000Total social benefit 23,000 25,800 28,500 32,000 34,500Your share (33% of total) 391,000 438,600 484,500 544,000 586,500Present value (PV) of your share 129,030 144,738 159,885 179,520 193,545(discounted @ 6%) Total PV of your share = 987,221 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
  6. 6. McKinsey & Company’s3 steps to designing a Learning Driven Assessment Planhttp://lsi.mckinsey.com/assets/dotcom/swf/flv/extranets/LSI/lda/lda.html
  7. 7. 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

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