Introducing a framework for Community Development Financial Institutions to discover and calculate Social Return on Investment (SROI). Connect program outcomes to societal contributions and savings.
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This document discusses a program called "Prep My CDFI!" which is designed to help Community Development Financial Institutions (CDFIs) prepare for and strengthen their CARSTM rating. CARSTM is an independent rating system that assesses a CDFI's impact performance and financial strength. Prep My CDFI! provides an assessment, management report, and support to help CDFIs improve documentation, operations, and outcomes tracking in order to obtain a higher CARSTM rating. The program costs a minimum of $5,000 but can include additional services and support.
This document summarizes research on the financial behaviors and needs of the Hispanic population in the United States and Lehigh Valley region of Pennsylvania. It finds that Hispanics are less likely to use formal financial services due to cultural aversions to debt, strong family support systems, and lack of trust in financial institutions. Specifically in the Lehigh Valley, Hispanic-owned businesses tend to be small with annual revenues under $200,000. The document examines how this research can help organizations like the Rising Tide Community Loan Fund better serve the local Hispanic community and business owners.
COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS: Considerations for Securitizati...Mark J. Feldman
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With the increasing debate about the social investment vs. philanthropic donations, organizations are under the pressure of reviewing the way they demonstrate the impact of their programs for multiple reasons.
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This document provides an overview of global and institutional funding trends. Regarding global trends, it notes that over $21 trillion has been committed to combating COVID-19. Future focus may shift to pandemic preparedness, health systems strengthening, and vaccine manufacturing. Major institutional donors like USAID, the EU, SIDA, and NORAD are focusing on issues like gender equality, climate change, health, and digital transformation in developing countries. Upcoming funding opportunities are also highlighted.
This document discusses a program called "Prep My CDFI!" which is designed to help Community Development Financial Institutions (CDFIs) prepare for and strengthen their CARSTM rating. CARSTM is an independent rating system that assesses a CDFI's impact performance and financial strength. Prep My CDFI! provides an assessment, management report, and support to help CDFIs improve documentation, operations, and outcomes tracking in order to obtain a higher CARSTM rating. The program costs a minimum of $5,000 but can include additional services and support.
This document summarizes research on the financial behaviors and needs of the Hispanic population in the United States and Lehigh Valley region of Pennsylvania. It finds that Hispanics are less likely to use formal financial services due to cultural aversions to debt, strong family support systems, and lack of trust in financial institutions. Specifically in the Lehigh Valley, Hispanic-owned businesses tend to be small with annual revenues under $200,000. The document examines how this research can help organizations like the Rising Tide Community Loan Fund better serve the local Hispanic community and business owners.
COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS: Considerations for Securitizati...Mark J. Feldman
The document discusses the history and future of the Basel Accords, international standards for bank capital adequacy developed by the Basel Committee on Banking Supervision. Basel II aimed to make capital requirements more risk-sensitive and introduce greater market discipline. While criticisms remain, its approach of three pillars (minimum capital, supervision, and disclosure) has strengthened risk management. Future work includes monitoring Basel II implementation, addressing new risks, and strengthening market discipline by having banks issue debt and commit to capital estimates.
This document discusses reimagining business development services (BDS), also known as technical assistance (TA), provided by CDFIs to their small business loan clients. It argues that BDS should be viewed as a discrete product or strategy to support portfolio performance and mission. The document provides examples of how BDS can be improved by establishing clear goals, metrics, engagement strategies and funding models. It also presents a case study of how one CDFI, Working Solutions, redesigned their BDS program through improved processes, staff roles and impact tracking.
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With the increasing debate about the social investment vs. philanthropic donations, organizations are under the pressure of reviewing the way they demonstrate the impact of their programs for multiple reasons.
SROI = Social Return on Investment – Methodology implemented is inspired by Social Value International. At its core, SROI is a measurement valuing both financial and non-financial outcomes. SROI quantifies and monetizes social impact in a clear and consistent way, enabling stakeholders to measure the achievement of social impact against three primary performance indicators, being appropriateness, effectiveness and efficiency.
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Economic development organizations have been using economic development performance metrics for years. However, with differing viewpoints, metrics have gotten muddy and misunderstood.
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But...
In 2016, the general public is still weary about the value of economic development and what we do in our profession.
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The document discusses several topics related to corporate social responsibility reporting, including:
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Donate to charity during this holiday seasonSERUDS INDIA
For people who have money and are philanthropic, there are infinite opportunities to gift a needy person or child a Merry Christmas. Even if you are living on a shoestring budget, you will be surprised at how much you can do.
Donate Us
https://serudsindia.org/how-to-donate-to-charity-during-this-holiday-season/
#charityforchildren, #donateforchildren, #donateclothesforchildren, #donatebooksforchildren, #donatetoysforchildren, #sponsorforchildren, #sponsorclothesforchildren, #sponsorbooksforchildren, #sponsortoysforchildren, #seruds, #kurnool
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The document summarizes the agenda and materials for an extra June board meeting of JumpStart. Key discussion items include:
- An introduction to a strategy conversation by the committee chair
- A presentation by the COO on JumpStart's history and past activities
- A 3 hour discussion by the CEO and COO on JumpStart's future direction, vision, mission, products, investments, lending activities, organizational focus, metrics, and risks
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The document discusses several topics related to corporate social responsibility reporting, including:
1) Social Return on Investment (SROI) which is a framework for measuring and accounting for social, environmental, and economic value in monetary terms;
2) ISO 26000 which provides guidance for organizations to operate in a socially responsible way and helps them integrate social responsibility throughout their operations;
3) CDP reporting which refers to disclosure of climate-related financial information to investors based on recommendations from the Task Force on Climate-Related Financial Disclosures.
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https://www.youtube.com/@jenniferschaus/videos
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The findings in this report highlight some of the key factors shaping the experiences and vulnerabilities of young people on the move – particularly their proximity to border spaces and how this affects the risks that they face. The report describes strategies that young people on the move employ to remain below the radar of visibility to state and non-state actors due to fear of arrest, detention, and deportation while also trying to keep themselves safe and access support in border towns. These strategies of (in)visibility provide a way to protect themselves yet at the same time also heighten some of the risks young people face as their vulnerabilities are not always recognised by those who could offer support.
In this report we show that the realities and challenges of life and migration in this region and in Zambia need to be better understood for support to be strengthened and tuned to meet the specific needs of young people on the move. This includes understanding the role of state and non-state stakeholders, the impact of laws and policies and, critically, the experiences of the young people themselves. We provide recommendations for immediate action, recommendations for programming to support young people on the move in the two towns that would reduce risk for young people in this area, and recommendations for longer term policy advocacy.
AHMR is an interdisciplinary peer-reviewed online journal created to encourage and facilitate the study of all aspects (socio-economic, political, legislative and developmental) of Human Mobility in Africa. Through the publication of original research, policy discussions and evidence research papers AHMR provides a comprehensive forum devoted exclusively to the analysis of contemporaneous trends, migration patterns and some of the most important migration-related issues.
1. Outcomes, Impact & How to
Track Them
By
Lawson F. Knight,
iiCredit
Wind River Development Fund
2. Goals
• Introductions
• Background of Social Return on
Investment (SROI)
• Linking SROI and Program
Evaluation
• Model CDFI SROI
• Developing SROI for your CDFI
• Getting to a defensible result
• Your next steps
3. About Us
Wind
River
Development
Fund
is
a
private,
nonprofit
community
development
corpora4on
and
federally
cer4fied
Community
Development
Financial
Ins4tu4on
that
seeks
to
s4mulate
economic
development
on
and
near
the
Wind
River
Indian
Reserva4on.
iiCredit
is
a
cloud-‐based
CDFI
opera4ng
system
built
on
the
force.com
platorm.
Built
as
an
earned-‐income
strategy
of
Wind
River
Development
Fund
(WRDF).
WRDF
is
iiCredit's
first
user.
The
applica4on
was
built
with
the
prac4cal
goal
of
moving
the
en4re
Enterprise
Stack,
from
data-‐storage
to
e-‐mail,
to
the
cloud.
4. CDFI Service Delivery Model
Par4cipant
Recruitment
&
Intake
Life
&
Financial
Skills
Development
• One-‐on-‐One
Assistance
• Workshops
&
Training
Capital
Access
• Lending
Capital
• Asset
Building
(Matching
Funds)
Stability,
Reten4on
&
Community
and
personal
growth
• Less
Poverty
• More
Prosperity
5. ROI
• Return on Investment. What does that mean?
• How much do I get back for what I spent?
• For Instance:
– My CDFI lends $10,000 for 60 months to a local business at 8%
• Financial benefit?
• Investment?
– For every $100 invested in this business, my CDFI receives
nearly a $22 return.
Financial Benefit
Cost of Investment
ROI =
6. • Why ROI is insufficient for CDFIs
• What are CDFI topline outcomes?
Social Return on Investment
Topline
Outcome
Client
Changes
Societal
Changes
Improved
Financial
Capabili4es
Capital
More
income
taxes
More
sales
tax
Self-‐
sufficiency
Fewer
people
reliant
on
public
benefits
Capacity
Less
likely
to
return
to
old
habits
Fewer
people:
Usurious
financial
instruments
CONTRIBUTIONS
SAVINGS
7. SROI
• Translate ROI to SROI:
• Clearly state your assumptions
• Use and document research to cite your analysis
Financial Benefit
Cost of Investment
SROI =
SOCIAL
Societal Contributions + Savings
Cost of Investment
=
8. A primer on SROI
• SROI was first developed in 1997 by Roberts
Enterprise Development Fund (REDF) to analyze the
impact of seven nonprofit organizations in San
Francisco
• These nonprofit organizations were running 23 social
purpose enterprises—a proving ground for business/
financial concept like ROI to be adapted as a program
tool
• SROI grew from there:
– Methodology paper released in 2001
– Framework document launched in 2005
– Guide to SROI analysis published in 2006
– DIY Guide released in 2007
– SROI Network formed in 2008
– Since then, affiliated SROI Networks in Japan, Sweden,
Australia, the Netherlands, and the UK. SROI guides
published in French, Korean, and Chinese.
9. What is program evaluation?
• Program evaluation is gathering
information about (some aspect
of) a program in order to make
necessary decisions about the
program.
• There’s lots of kinds of evaluation:
– Needs Assessment
– Process evaluation
• Pareto Principle
10. Why is it helpful?
• Helps you understand the impact
of your work
• Validates what we’re doing &
how we’re doing
• Provides evidence for public,
promotion, funders and
duplication
11. CDFI Sample SROI
What values does a CDFI create for Society?
Social Impact:
Annualized Contributions to Society
$
Income Taxes Paid, Social Security, Sales
Tax Dollars Spent
Annualized Savings to Society
+ $
Total One-Year Social Impact
$
Determining the Social Return on Investment:
Present Value of Social Investments
(Over Five Years)
$
CDFI One-year Program Cost / $
Social Return on Investment
%
13. Annualized Contributions to
Society
Topline Outcome:
# of quality, permanent employment jobs created
Total Annualized Income
Job
#1
Wages
and
Benefits
+
Job
#2
Wages
and
Benefits
+
Job
#3
Wages
and
Benefits
+
.
.
.
All
jobs
created
________________________
TOTAL
INCOME
2014 Income Tax Rates
Income Tax Contributions
Federal
15.0%
+
Social
Security
6.2%
21.2%
TOTAL
INCOME
x
21.2%
Societal
Contribu4on
15. Annualized Savings to Society
Topline Outcome:
XX working in quality, permanent employment in 2014
• Y were receiving Food Stamps at program entry
Total Annualized Food Stamps Payouts
$252 avg per month
x 12 months per year
x Y recipients
$ Food Stamps savings
• Temporary Assistance to Needy Families (TANF) and
Unemployment savings are calculated in the same way
– Based on real data collected during program intake
– Knowledge that payouts stop when individual is on the job
16. Understanding Outcome Estimation
(EITC participation in WY)
=Income due to intervention"
Your topline
outcome group"
Research expected rate of
participation (7 of 10, 70%)"
Calculate your org’s
rate of participation"
(9 of 10, 90%)"
Take the difference (2), and
research/calculate cost of
participation per person"
x Proceeds from "
participation"
17. The Final Calculation
• 1 = One Year Program Cost
• 2 = Contributions to Society + Savings to Society
– Take one-year results and project out for as many years
your enterprise is comfortable.
– Three to five years is typical due to uncertainty beyond.
Five years is typical for startup financial projections.
– For each year the projection extends, discount the
social benefit to account for inflation and risk.
• 30-year bond rate or CPI
• Risk factor is an internal, defensible election like 5% (or more)
SROI = Social Financial Benefit2
Investment1
18. Where do you go from here
1. Do your quick wins first.
2. Be as much of a “Data Geek” as you like.
Go as far as your interest, resources and
ability to sustain assessment over time.
3. This can be heady stuff. Make it
thoughtful, defensible and approachable.
Don’t be arrogant.
4. Be informed and humble.
5. Move the conversation from grants to
investment.
19. Grow in your capacity
Level
1
Level
2
Level
3
Level
4
Enterprise
Social
Outcome
Measurement
Neither
inputs/
ac4vi4es
or
social
impact
of
enterprise
are
measured
Enterprise's
social
inputs
and
ac4vi4es
measured
(e.g.
#
of
employees;
#
of
trainings
held);
data
collected
ad
hoc
from
various
sources
In
addi4on
to
inputs
and
ac4vi4es,
social
outputs
measured
(e.g.
income
or
housing
status
of
employees);
some
data
collec4on
systems
exist
but
not
necessarily
coordinated;
data
some4mes
used
to
refine
enterprise
service
delivery
Comprehensive,
coordinated
data
collec4on
and
tracking
system
used
to
track
both
outputs
and
outcomes
(e.g.
%
decrease
in
substance
abuse)
over
4me;
data
trends
analyzed
and
used
to
refine
enterprise
service
delivery
From
REDF's
capacity
assessment
tool
20. Resources
• Lingane, A. & Olsen, S. (2003). Guidelines for social return
on investment. Working Paper Series, Center for
Responsible Business, UC Berkeley. Retrieved from
http://escholarship.org/uc/item/6xp540hs
• McNamara, C. A Basic Guide to Program Evaluation.
Authenticity Consulting, LLC. Retrieved from
http://www.tgci.com/sites/default/files/pdf/A%20Basic
%20Guide%20to%20Program%20Evaluation_0.pdf
• SROI Network. SROI: A History. Retrieved from
http://www.thesroinetwork.org/what-is-sroi/a-history-of-sroi
Lawson F. Knight
iiCredit
Development
Wind River
Development Fund
lawson@wrdf.org
(307) 828-1618
Arum Kone
Chief Technology
Officer & Data
Scientist
Wind River
Development Fund
arumkone@wrdf.org
Brett White
Executive Director
Wind River
Development Fund
brettwhite@wrdf.org