Social Return on Investment (SROI)

This article describes the process to calculate Social Return on Investment on Impact Cloud

Pre-requisites:

* Theory of Change created

* Project created

* Metrics assigned to the project

* Data collected

 

1. Log on to Impact Cloud, this is the first screen you will see :

2. Click on the SROI module. This module pulls the data from your metrics.

4. When you click on the SROI application, you will see 4 tabs: 



Stakeholders 

In this tab, you will be able to create and manage the different stakeholders to consider for the SROI calculation. The stakeholders are any individuals or groups that are directly or indirectly benefited/affected by your organization's activities. 

As per the methodology defined by Social Value International, the SROI calculation process recommends involving the stakeholders in the definition of monetary values for the positive and negative outcomes that they are experiencing. 

1. To create a new stakeholder, click on Add Stakeholder

2. A window will pop up for you to enter:

  • The stakeholder name
  • The rationale or reason to involve the stakeholder
  • The classification of this stakeholder (Group or Sub-group)
  • Size of the sample of stakeholders involved
  • Size of the total population of stakeholders

3. To edit the current stakeholders, click on the icon at the left of the stakeholder name:

Inputs 

The inputs are the resources invested into the project, such as funding, volunteers, overhead, etc. 

  1. To create  an input, click on Create Input

2. A window will pop up for you to enter:
  • The project name
  • The TOC from which you are selecting metrics
  • The input name
  • The input description
  • The stakeholders experiencing the input (from the list of stakeholders created in the previous step)
  • The reporting frequency of the metrics associated with the input
  • The metrics associated with the input
  • The reporting period from which your metrics should pull the data

3. Once created, the input will start displaying on the table. At that point, you can type the Financial Proxy, which is the monetary value assigned to the input. In the case of funding, the financial proxy is always 1.  

4. Repeat this process to create as many inputs as needed.

5. To edit an input, click on the icon at the left of the input name:

Outcomes 

The outcomes are the positive and negative effects experienced by the stakeholders. 

  1. To create a new outcome click on Create Outcome

2. A window will pop up for you to enter:

  • The project name
  • The TOC from which you are selecting metrics
  • The outcome name
  • The outcome description
  • The outcome source
  • The outcome type (intended/unintended)
  • Outcome duration in years (from 1 to 5)
  • Outcome start date
  • Outcome end date
  • Impact type (positive/negative)
  • Stakeholders experiencing the outcomes (from the list created in the first step)
  • The reporting frequency of the metrics associated with the outcome
  • The metrics associated with the outcome
  • The reporting period from which your metrics should pull the data

3. Once created, the outcome will start displaying on the table. At that point, you can type the Financial Proxy, which is the monetary value assigned to the outcome according to the stakeholders experiencing it. 

4. Repeat this process to create as many outcomes as needed.

5. To edit an outcome, click on the icon at the left of the outcome name:

Valuations 

The valuation is the place where we put together the inputs and the outcomes to get the social return on investment ratio. 

  1. To create  an input, click on Create Valuation

2. A window will pop up for you to enter:

  • Valuation name
  • Valuation description
  • Source of the valuation
  • Valuation technique used
  • Purpose (evaluation/forecast)
  • Scope of the analysis
  • Length of the project activities
  • The reporting frequency of the metrics associated with the valuation
  • The reporting period from which your metrics should pull the data
  • The inputs to include in the valuation (from the ones created in the second step)
  • The outcomes to include in the valuation (from the ones created in the third step)

    3. Once created, the valuation will start displaying on the table. To view the valuation, click on the eye icon.

    4. The next screen will show a summary of the inputs and outcomes selected as part of the valuation.

    5. The following columns will have default values based on the recommendations of Social Value International:

    • Deadweight: Amount of outcome that would have happened anyway.
    • Attribution: Assessment of the amount of outcome that was caused by the contribution of other organizations.
    • Drop-off: Used to account for the reduction in the amount of outcome happening. 
    • Discount rate: Discounting due to opportunity cost.

    These values can be modified if your organization has more accurate values according to your context. 

    6. For your convenience, all the columns with concepts related to the methodology of SROI include a definition and an example. 

    7. At the bottom of the screen, the system will provide the SROI ratio:

    8. To present the SROI ratio in the dashboard, go to Impact Insights and click on the tab SROI Analytics.

    • In Select Frequency, pick the reporting frequency associated with the valuation that you want to analyze.
    • In X-Axis, pick the valuations that you want to analyze.
    • In Y-Axis, pick among SROI Ratio, Total value of inputs, Total value of outcomes, Total value of impact. 

     

    Congratulations!! You have run your first SROI valuation.