Social Return on Investment (SROI) Collection

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Social Return on Investment (SROI) Collection

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Published in 2000

The term SROI has been used in various contexts to mean that nonprofits create social value. However, there have been limited efforts to date to quantify and monetize this social value creation. REDF has created an SROI Framework that identifies direct, demonstrable cost savings and revenue contributions associated with an individual’s employment in a social purpose enterprise. The measurements include tracking social outcomes of ordinarily difficult to monetize measures of social value, such as increases in self-esteem and social support systems, or improvements in housing stability. Each social purpose enterprise within REDF’s Portfolio has participated in this evaluation process, with the results tabulated within each of eleven SROI Reports. REDF’s methodology is chronicled within the SROI Methodology Paper, and an Excel model is available for practitioners to determine the SROI metrics for their own organizations.

(1) REDF’s Current Approach to SROI
This update summarizes what we’ve learned about SROI, and lays out the next steps that REDF will be taking to build on this earlier work. We welcome and encourage you to submit your ideas, as we know that many people around the country and globally have continued to build and improve upon the early efforts of REDF and the enterprises we have had the privilege to work with.

(2) A Report from the Good Ship SROI
Before you dive in to the SROI Reports or methodology paper, we recommend that you read this update by Cynthia Gair, REDF’s Portfolio Director, which provides a brief history of SROI as well as lessons learned, questions answered, and a note on the future of SROI.

SROI Methodology Paper

It is recommended that you first read our SROI Methodology Paper, as it will answer many of the questions that will arise as you review the subsequent REDF Portfolio SROI Reports.

(3) Introduction
Presents the overall premise behind the SROI Methodology Paper. It contains the Acknowledgements, Contents, Executive Summary and Introduction.

(4) Chapter 1: Investment Philanthropy, Concepts of Value, and Defining SROI
This chapter introduces the primary concepts of Investment Philanthropy. It presents the measurement of value from the following three perspectives: Economic, Social, and Socio-Economic. It then goes on to define the Social Return on Investment (SROI).

(5) Chapter 2: REDF’s SROI Approach: Key Concepts and Financial Tools
A key to using REDF’s Framework is understanding the underlying concepts it is built on — its tools; and the information it asks for — its terminology. This chapter walks you through the model’s process and presents primary concepts used in our Framework.

(6) Chapter 3: REDF’s SROI Analysis: The Process
The results of the SROI analysis, as well as business analysis and social impact results are summarized in the SROI reports. This chapter discusses the full content of the SROI Reports.

(7) Chapter 4: The SROI Reports: Presenting SROI in Context
The SROI Reports are designed to provide the context for understanding the social return on investment for each portfolio social purpose enterprise. This chapter explains the contents of the SROI Reports, and discusses limitations in the analysis of social purpose enterprises.

(8) Chapter 5: Going Forward
This chapter details our thoughts behind particular line items and calculations, as well as the specific issues we faced. In doing so, we hope to engage others in developing possible solutions to the questions we have not answered, and identifying weak points in our SROI analysis.

(9) Appendix
The appendix contains pertinent items related to the Social Return on Investment. It serves as a reference point for the reader and contains a Glossary, Changes to the Model, Sources of Social Service Cost Information, and a Bibliography.

SROI Reports

Individual SROI Reports for each social purpose enterprise within REDF’s investment portfolio. These SROI Reports are similar to for-profit stock reports. The reports include the SROI analysis results as well as narrative descriptions of the business, highlights of an enterprise employee, and a summary of the impact of the social purpose enterprise on individual social outcomes.

(10) Overview and Guide to Reading SROI Reports
This document defines SROI, summarizes the need for measuring it, as well as offering insight into its future.

(11) Guide
This document provides a step-by-step guide for understanding and analyzing the metrics included in the SROI Reports.

(12) Ashbury Images SROI Report
Ashbury Images (AI) is a screen print production company that provides employment and job training for individuals recovering from substance abuse and homelessness. AI prints and embroiders custom apparel for large corporations, churches, nonprofits, universities, and small businesses.

(13) CVE Training Businesses SROI Report
CVE provides employment and training to individuals with psychiatric disabilities. CVE’s Training Businesses include CVE Cafes, CVE Clerical Services, and CVE Driver/Messenger.

(14) Einstein’s Cafe SROI Report
Youth Industry’s social purpose enterprise in the Inner Sunset, Einstein’s Cafe, serves large, fresh salads, sandwiches, homemade soups, and breads.

(15) Industrial Maintenance Engineers SROI Report
Industrial Maintenance Engineers (IME) is a professional cleaning service serving the greater Bay Area. Since March 1998. IME has provided vocational services to individuals with psychiatric disabilities, ex-offenders, and those with a history of substance abuse.

(16) Juma Ventures SROI Report
Juma Ventures currently owns and operates four businesses that will serve over 170 youth in 2000 — two Ben & Jerry ice cream shops, a catering operation (ICOW), and stadium concessions selling Ben & Jerry’s ice cream and Tully’s coffee at 3Com Park and the new Pacific Bell Ballpark.

(17) Nu2U/Nu2U2 SROI Report
Nu2U and the recently opened Nu2U2 are retail stores that sell used clothing and household items in San Francisco’s Mission District.

(18) Pedal Revolution SROI Report
Pedal Revoloution (PR) provides youth with training in bicycle sales and repair. Pedal Revolution repairs bicycles, sells bicycle apparel, locks, and accessories and sells new and used bicycles and parts.

(19) Recycled Merchandise SROI Report
Recycled Merchandise is Youth Industry’s social purpose enterprise that collects used clothing and household items and sells wholesale to Youth Industry’s Nu2u and Nu2u2 enterprises and other Bay Area thrift stores.

(20) Rubicon Bakery SROI Report
Rubicon Bakery is a premium wholesale bakery that produces cakes and tarts, while providing quality entry-level jobs for disadvantaged community residents in the food service industry.

(21) Rubicon Landscape Services SROI Report
Rubicon Landscape Services provides landscaping services to large-scale residential and commercial properties and is based in Richmond, California.

(22) Specialty Mill Products SROI Report
Specialty Mill Products (SMP), Asian Neighborhood Design’s (AND) custom millwork, furniture, and cabinet making business, serves a dual purpose: to manufacture high quality wood products and to provide a state-of-the-art working environment for job trainees.

Visit our tools section to see REDF's SROI Excel Model. The Model seeks to bridge theory and practice by providing concrete instructions on how to calculate the Social Return on Investment of your social purpose enterprise.