sroireport guide Guide to Reading the SROI Reports The SROI Reports published by REDF are designed to provide the context for understanding the social return on investment for each REDF Portfolio social purpose enterprise The following is a guide to under

Guide to Reading the SROI Reports The SROI Reports published by REDF are designed to provide the context for understanding the social return on investment for each REDF Portfolio social purpose enterprise The following is a guide to understanding and analyzing the metrics included in the SROI Reports The SROI Reports incorporate the SROI metrics business data and social impact data and provide analysis of these areas Viewed as a whole the SROI Report is similar to a for-profit stock report It summarizes the performance of a social purpose enterprise so that investors funders and other interested parties can quickly assess its performance on business social and blended business and social bases In the same way that for-profit investors look to more than one indicator when assessing the performance of a corporation philanthropic investors may now make funding decisions based on an intelligent mix of business social impact and socio-economic return measures The SROI Reports also provide a way for practitioners to show the blended social and economic returns generated by funders ? philanthropic investments guide SROI METRICS ?? FIGURE A Each SROI report includes a table of SROI metrics Figure A The purpose of the SROI metrics is to show the monetizable return on an investment in a social purpose enterprise In order to do this one must understand how much was invested in the social purpose enter- prise how much monetizable value was created and then one must compare the investment to the value created This comparison is shown in the Index of Return Index The Index is calculated as follows Ideally an investment should have an Index greater than one An Index of one means that for each dollar invested one dollar of value has been created A higher Index of Return implies a more efficient use of the investment For example an Index of would mean that for each dollar invested of value is creat- ed An Index of Return less than one does not necessarily imply a poor investment It is pos- sible that the enterprise creates other types of value that are not measured in the SROI met- rics The full SROI report provides context to help the investor determine whether or not this is the case The SROI metrics measure two types of value created by social purpose enterprises ?? Enterprise Value the financial return from the business and Social Purpose Value the monetizable public cost savings and new taxes generated by individuals while employed by the social purpose enterprise Looking at these values separately enables the investor to have a deeper understanding of the impact of the investment The Blended Value is the totalmonetizable value of the social purpose enterprise REDF recognizes that social pur- pose enterprises create other types of value which are difficult to monetize occur after the employee has left the enterprise or accrue to family members of the employee We affirm the validity of these other types of value and hope that the other sections of the report

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  • Publié le Jui 08, 2022
  • Catégorie Administration
  • Langue French
  • Taille du fichier 573.2kB