Measure your impact with Social Return on Investment

Summary

This video explores the process of measuring the social and environmental impact of organizations, focusing on how to calculate social return on investment (SROI). Using the example of 'Tutoring for Tomorrow,' an after-school program for at-risk youth, the video outlines the steps involved in assessing social benefits, from identifying key stakeholders to developing impact maps and indicators. The SROI analysis compares program costs with long-term benefits, often expressed in monetary terms. Ultimately, it highlights how impact measurement systems help organizations improve their services and demonstrate their value to funders and communities.

Takeaways

• 😀 Identifying social and environmental benefits of organizations is a debated topic, with a focus on how to measure and calculate these impacts.
• 😀 Organizations need to define their goals and develop an impact map to measure their social return on investment (SROI).
• 😀 Stakeholders, such as teachers and students, are essential to identify and engage with to understand the key activities and outcomes.
• 😀 Once goals and activities are defined, indicators are created to measure the social impact and gauge the changes for students.
• 😀 A critical aspect of SROI analysis is determining how much of the observed change is directly caused by the organization's intervention, such as isolating the impact of a tutoring program.
• 😀 Baseline data, such as average graduation rates for at-risk youth, is used to understand what would have happened without the program, helping to isolate the program's specific impact.
• 😀 The SROI ratio compares the benefits and costs of a program, but it is important to also report non-monetized outcomes that cannot be easily quantified in monetary terms.
• 😀 The SROI framework should be contextualized and adjusted based on the unique needs of each organization to accurately reflect its impact.
• 😀 Developing an impact measurement system offers significant benefits, including identifying program strengths and areas for improvement.
• 😀 The framework can help generate compelling reports to demonstrate the program's value to key stakeholders, including funders and investors.
• 😀 A well-developed impact measurement system allows organizations to track their progress and refine their programs over time, creating long-term positive impacts for the community.

Q & A

What is the purpose of measuring social and environmental benefits for organizations?

The purpose is to assess the social and environmental impact that an organization has, enabling them to understand and quantify how their activities contribute to societal well-being and sustainable development.

What is the focus of the 'Tutoring for Tomorrow' program?

The program focuses on providing after-school support to at-risk youth, aiming to build their confidence, improve academic performance, and encourage college or university enrollment.

Why does 'Tutoring for Tomorrow' need to calculate its social return on investment (SROI)?

The organization needs to calculate its SROI to determine whether its goals are being achieved and to measure the social impact of its efforts in a quantifiable manner.

What is the first step 'Tutoring for Tomorrow' takes to measure its impact?

The first step is to create an impact map, which helps identify stakeholders (such as teachers and students) and connects with them to discuss key activities and expected outcomes.

How does 'Tutoring for Tomorrow' measure the social impact created by its program?

Indicators are developed to measure the social impact. These indicators track changes in students' progress, such as improved grades and increased graduation rates.

How does the program account for changes that may not be directly caused by 'Tutoring for Tomorrow'?

To isolate the impact of the program, adjustments are made by using a baseline (e.g., average graduation rates for at-risk youth) to compare how students would have performed without involvement in the program.

Why are outcomes sometimes expressed in monetary terms in SROI analysis?

Monetizing outcomes allows the organization to compare the benefits of the program to its costs, showing the financial value of the social impact, such as public and private savings from increased graduation rates.

What is the role of the SROI ratio, and why is it important?

The SROI ratio compares the monetary benefits to the costs of the program. This ratio is important because it helps to quantify the return on investment, although non-monetized outcomes also play a significant role in the overall impact assessment.

How does 'Tutoring for Tomorrow' use the SROI framework year after year?

Once the framework is developed, 'Tutoring for Tomorrow' can use it annually to track progress, refine the program, and adjust its impact measurement process as the program evolves.

What are the benefits of developing an impact measurement system like SROI?

Developing an impact measurement system helps the organization identify successes and areas for improvement, adjust programming accordingly, and generate reports to demonstrate the program’s value to funders, investors, and boards.

What specific return on investment does 'Tutoring for Tomorrow' generate for every dollar invested in the program?

For every dollar invested, 'Tutoring for Tomorrow' generates a 1.98x return in social benefits to the surrounding community.

How does measuring the social return on investment contribute to stronger communities?

By measuring and demonstrating the positive impact of programs like 'Tutoring for Tomorrow,' organizations can secure continued support and resources, which in turn strengthens communities by addressing key issues like education and youth development.