Social Impact Measurement An Overview Pratik Dattani 23 rd November 2016

Transcription

1 Empowering Donors. Supporting Charities. Social Impact Measurement An Overview Pratik Dattani 23 rd November 2016 EPG Economic and Strategy Consulting, 78 Pall Mall, London, SW1Y 5ES

2 What does social impact mean? Page 2

3 What is social impact? (I/II) An organisation produces financial return and social impact. Defined by third-party rating tools. Short for social, environmental and economic impact. How you make people s lives better. Does the definition take into account opportunity cost and ethics? Three examples: International HIV Fund, a Hackney art music venue, mental health awareness seminars. What is their social impact? Page 3

4 What is social impact? (II/II) Does the definition take into account opportunity cost and ethics? Contribution to society Actual Scenario 1 Counterfactual Attending the training course Time Page 4

5 Why may it be important to measure impact? European telecom quoted companies EV / EBITDA x 2.0x 4.0x 6.0x 8.0x 10.0x Iliad 9.1x Kabel Deutschland 8.8x Sky Telenet Group Jazztel Virgin Media 5.9x 8.0x 8.0x 7.9x Internet and TV median 6.9x TalkTalk 5.7x KCOM Group 5.4x Tiscali 5.1x ZON Multimédia 4.9x TeliaSonera 7.3x Elisa Oyj 6.9x Swisscom 6.2x Telefónica CR 5.8x Portugal Telecom TDC Belgacom Royal KPN Phonera 5.4x 5.4x 5.2x 5.1x 5.1x Combined (fixed plus mobile) median 5.1x Deutsche Telekom 4.8x Magyar Telekom 4.7x France Telecom 4.6x TPSA 4.5x Telecom Italia 4.4x Hrvatski Telekom 3.9x OTE 3.5x Telekom Slovenije 3.0x Tele2 Telenor Telefonica S.A. Page 5.6x 5 5.5x 6.1x Mobile median 5.0x

6 Some case studies from across the world Source: Page 6

7 Some impact considerations How to treat centrally allocated costs Comparing apples with oranges Understanding additionality Page 7

8 Why is volunteering good? Impact on volunteer vs good for the target beneficiary group? Example of Gap Year students. Handy and Srinivasan (2004): SROI of $1:$6.84. Volunteering as a service to the community vs hospital itself. Motivational factors for volunteering: Anheier and Salamon (2001): Altruism, instrumentalism and obligation. Volunteering was positively related to psychological well-being and self-reported health. More continuous involvement -> greater benefit. Paik and Navarre-Jackson (2011): Used Giving and Volunteering in the United States Survey (GVS), they found that having 2-3 sources of social ties lead to the probability of an individual volunteering in the last month to increase by 9-10 percentage points. Page 8

9 Example: Participating organisations (I/III) Europe North America Middle East 51 Asia-Pacific 5 Page 9

10 Example: Participating organisations (II/III) Great Britain 8 Finland Denmark Page 10

11 Example: Participating organisations (III/III) Page 11

12 Example: Base Case, Low Case, High Case scenarios SROI Protecting Project the environment type 1 Help relieve Project hardship type and 2 poverty Bring a Project little joy type to others 3 High Case Low Case Base Case Page 12

13 Example: Unemployment charity Page 13

14 How could you show your impact? One way is this Page 14

15 How can we define attribution? Deadweight Attributable benefit to scheme Benefits Catalytic effects: Significant fall in opportunity cost of attending scheme Catalytic effects: Peer effects Catalytic effects: Identification of further help required Extra reading help at school Enrolment into youth community programme Help with childcare costs Self-enrolment into training scheme Timeline Page 15