SROI Report 2016

Social Return of Investment Analysis Report 2016 Yvonne Quek University of Arkansas Clinton School of Public Service July 29, 2016

Table of Contents 1.

Executive Summary........................................................................................................................................2

2.

Purpose.............................................................................................................................................................2

3.

Organizational Background..........................................................................................................................3

4.

Organizational Location................................................................................................................................3

5.

Organizational Activities...............................................................................................................................5

6.

Organizational Summary..............................................................................................................................5

7.

Methodology.....................................................................................................................................................6

8.

Definitions........................................................................................................................................................8

9.

Data Collection................................................................................................................................................8

10.

Social Return on Investment........................................................................................................................9 a.

Identifying Stakeholders

b.

Mapping the outcomes: Theory of Change

c.

Developing outcome indicators and evidencing the outcomes

11.

Organizational Investment.........................................................................................................................25

12.

SROI Ratio....................................................................................................................................................25

13.

Conclusion.....................................................................................................................................................27

14.

Limitations and Recommendations.........................................................................................................28

15.

References.....................................................................................................................................................29

1

Executive Summary

Purpose

This report shares findings on the social and economic value created by Awamaki in 2015 through its women’s cooperative program and sustainable tourism program implemented in five different communities located around the Scared Valley in Cusco, Peru. Founded in 2009, Awamaki is a non-profit social enterprise dedicated to empowering rural artisan women through market access and skills-development capacity building.

This evaluative Social Return of Investment (SROI) analysis was conducted in June 2016 by a graduate student researcher from the University of Arkansas Clinton School of Public School. By applying SROI analysis, this study aims to measure, in quantitative terms, the social and economic value generated by the organization in 2015. Of note, Anne Marie Toccket previously conducted an evaluative SROI analysis in 2010. Anne Marie works as a current staff member on Awamaki U.S., a 501(c)(3) non-profit organization registered in United States of America as Awamaki’s sister organization. The former SROI analysis focused solely on Awamaki’s impact on a single weaving cooperative in Patacancha. Since then, Awamaki has expanded to work with another cooperative in Patacancha and four other different cooperatives in the Sacred Valley. This evaluative SROI measures the impact of Awamaki on the women in five different communities as well as other stakeholders who directly benefit from the sustainable tourism activities. In 2015, Awamaki worked with 148 women in its women’s cooperative program, 22 homestay families, 5 Spanish teachers, 5 local artisans, tourists and volunteers. This report sets out the changes experienced by these stakeholders in the Ollantaytambo district of Cusco and calculates the monetary value of these changes.

18 outcomes were monetized and included in the SROI analysis. The results of this study showed that for every dollar invested into Awamaki, the organization generates a social and economic value of $1.20. In addition, for every dollar invested in the women’s cooperative program, it generates a social and economic value of $1.55.

The purpose of this analysis is to assess and quantify the social and economic value created

by Awamaki in 2015 using the SROI analytical framework. The SROI methodology is a popular approach used by social purpose organizations to account for value created by the organizations. It tells the story of what changes are being created and places monetary values on those changes.

It then compares the value of the changes with the costs incurred in creating those benefits. A graduate student at the University of Arkansas Clinton School of Public Service conducted this analysis in the summer of 2016 as part of her academic program coursework. Specifically, this report sets out the methodology, analysis and findings on the social and economic value generated by Awamaki in 2015. The analysis similarly summarizes and serves as an evaluation tool to quantify the organization’s impact on the communities it works with.

Organizational Background Founded in 2009, Awamaki is a non-profit social enterprise based in Ollantaytambo, Cusco, Peru.

Awamaki is registered as an Asociacion Civil in Peru as well as a 501(c)(3) non-profit organization in the United States. Awamaki’s mission is to collaborate with the greater Ollantaytambo community to create economic opportunities and improve social well-being. Awamaki works primarily with rural artisan women and their families from remote communities in the Sacred Valley. The organization empowers these women through sustainable tourism opportunities, access to markets for their textile products and skills development capacity building. Awamaki believes that increasing the economic opportunities of women will lead to an increase in women’s income, which has wider social benefits for their families and communities.

Organizational Location

Dodig, R. (Photographer). (2010, April 13). Map of the Sacred Valley [digital image].

Retrieved from http://filer.livinginperu.com/dl/maps/sacred-valley.jpg Pg. 3

Organizational Location Awamaki is located in the heart of the Sacred Valley, in Ollantaytambo, Peru. Ollantaytambo is known as the living Inca city given the large number of indigenous population who continues to speak the native language of the Andes, Quechua.

The latest National Census (2007) estimates that approximately 13% of the Peruvian population speaks Quechua and 54% of that population resides in the rural Andean highlands (Peruvian Instituto Nacional de Estadistica e Informática [INEI], 2014). The town is also situated between Machu Picchu, an UNESCO world heritage site and Cusco, the capital city of the Incas. It is well noting that since 2005, approximately more than half a million national and foreign tourists visit Machu Picchu annually (INEI, 2014a). Yet in Peru, 46% of the rural population continues to live under the poverty line (INEI, 2014b). Specifically, in the Sierra region where Ollantaytambo is located, the rural population has the highest proportion of people living in poverty at over 50.4% and 17% living in extreme poverty (INEI, 2014c).

It is clear that majority of the rural indigenous population is unable to access and reap the benefits of a thriving tourism industry. In the Ollantaytambo district, the rural population relies heavily on the sustenance agricultural-based economy in spite of the continuous influx of tourism on-route to Machu Picchu. In particular, rural Quechua women are most affected by poverty (International Fund for Agricultural Development, 2013). Rural Quechua women continue to face lower rates of education than men.

Approximately 68% of rural Quechua women are illiterate as compared to 32% of rural Quechua men (INEI, 2014d). In addition, approximately 81% of rural women are not economically active.

Besides managing traditional household tasks and childbearing, rural women traditionally work with livestock and tend to subsistence agriculture so as to allow the men to participate in migratory employment such as working on the Inca Trail

(International Fund for Agricultural Development, 2013). As such, Awamaki works with these indigenous communities living in rural Andean communities located around the Sacred Valley, specifically women to provide them and their families with alternative reliable income-generating sources. The organization supports the women through our women’s cooperative program and sustainable tourism opportunities.

Awamaki capitalizes on the traditional weaving skills learnt by indigenous women since young.

Textiles are made by the women on back-strap looms, which is an ancient weaving technique unique to the Andes. Awamaki aims to revitalize and preserve this ancient craft through providing these women with capacity-building skills (i.e. design, marketing and quality control) and connecting them to the international market.

In addition, Awamaki aims to promote an appreciation of the culture and traditions of the rural Andean indigenous communities as well as conserve the artisanal weaving craft through sustainable tourism opportunities.

Organizational Activities Awamaki currently runs two main programs: the women’s cooperative program and the sustainable tourism program. For the women’s cooperative program, Awamaki works with women weavers and knitters in five different Sacred Valley communities, Kelkanka, Huiloc, Puente Inca, Rumira and Patacancha (Songuilay and Away Puna). In 2015, Awamaki worked with 148 women in six different cooperatives. Awamaki provides the cooperatives skills-training workshops in weaving/ knitting patterns, natural dyes and quality control.

The organization also purchases products from the cooperatives at fair pricing for sale in its volunteeroperated retail store located in Ollantaytambo.

Any sales profit is reinvested into the women’s cooperative program. Awamaki is committed to helping the cooperatives gain sufficient business skills to manage clients and operate independently of Awamaki. For the sustainable tourism program, Awamaki offers Andean women and their families an opportunity to share Andean culture and traditions. The tour visits also allow the women to

showcase their handmade products for direct sale to tourists. Awamaki currently provides one or three-day tours to Patacancha and Huiloc, which allow tourists an opportunity to understand the Andean weaving tradition and learn about the Quechua community and culture. Awamaki also collaborates with local artisans to offer cooking and woodcarving classes in Ollantaytambo.

Organizational Summary Locations: Kelkanka, Huilloc, Puente Inca, Rumira and Patacancha (Songuilay and Away Puna).

Organization Goal: To collaborate with the greater Ollantaytambo community to create economic opportunities and improve social well-being Organization Expenditure in 2015: US$370,000 Direct Beneficiaries: 148 artisan women (Weavers, Knitters and Spinners), 22 Homestay families, 5 Spanish teachers, Local master weaver (Daniel Sonocco), Local artisans (Woodcarving teacher, Cooking teachers and Natural Dye Teacher), Tourists, Volunteers Total Indirect Beneficiaries: 532 persons (This number calculates the family members of artisan women in the six cooperatives. The number of indirect beneficiaries would increase if the family members of homestay families and artisans are included.)

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Methodology The SROI approach is a framework, which quantifies and assigns monetary values to social impacts (Maier, Schober, Simsa & Millner, 2014).

The SROI framework was first developed in 1996 by Roberts Enterprise Development Fund (REDF) to capture the socio-economic value of its employment programs in San Francisco (Emerson, 2000). In 2003, the New Economics Foundation proposed a revised approach of SROI calculation, which integrated REDF’s approach with cost-benefit analysis (New Economics Foundation, n.d.). Since then SROI principles and methodologies have been continuously evolving to capture the wider impact of interventions and increase applicability to a broader range of organizations (Banke-Thomas, Madaj, Charles, & Broek, 2015).

The distinctive feature of the SROI analysis is the singular SROI ratio that serves as a useful device to communicate the value-add generated by the organization to external stakeholders. For example, a ratio of 3:1 indicates that a monetary investment of $1 delivers a social return of $3 for the organization’s stakeholders. Beyond the ratio, the SROI analysis tells a story of the changes experienced by the organization’s stakeholders.

There are two types of SROI analysis, evaluative and forecast. Evaluative SROI analysis is conducted retrospectively and based on actual outcomes that have already taken place (Nicholls, Lawlor, Neitzert, & Goodspeed, 2012). Forecast SROI analysis is conducted introspectively and forecasts how much social value will be created if the activities meet their intended outcomes (Nicholls et al., 2012). In this report, the student researcher will be conducting an evaluative SROI analysis.

Notably in the past decade, the government of the United Kingdom has encouraged social enterprises to utilize SROI in accounting for their social value. In 2008, the United Kingdom’s

Cabinet Office, Office of the Third Sector, funded various organizations in a three-year program on measuring social value, which resulted in the creation of the SROI Guide (Nicholls et al., 2012).

The methodology used in conducting this SROI analysis is based on the approach set out in this guide, specifically the U.S. Edition (Nicholls et al., 2012). There are five stages in carrying out an SROI analysis.

1. Identify the scope and stakeholders 2. Mapping outcomes 3. Developing outcome indicators and valuation of outcomes 4. Establishing Impact 5. Calculating the SROI ratio Step 1 - Identifying the scope and stakeholders First and foremost, it is important to establish the scope of the SROI analysis. This includes defining the purpose of the analysis, understanding the organization’s theory of change and its availability of resources as well as deciding the time frame for analysis (Nicholls et al., 2012). Defining the boundaries helps to ensure it is feasible to conduct the analysis. It is also important to determine which stakeholders are the primary beneficiaries of the organization.

Step 2 - Mapping outcomes It is important for the organization to understand its theory of change. The theory of change helps to set out the casual linkages between the activities of the intervention and its desired outcomes (Imas & Rist, 2009). It is also helpful to identify the assumptions that underlie the intervention.

The basic components of the theory of change include resources (inputs), activities (strategies and processes), outputs, outcomes (short and

intermediate term) and impact (long-term outcomes).

Step 3 – Developing outcome indicators and evidencing the outcomes. This step involves developing outcome indicators and attaching monetary value to outcomes. An indicator is the quantitative measure of progress towards a target (Imas & Rist, 2009). In developing outcome indicators, the organization needs to consider its data collection strategies, whether existing data collection systems are in place and what capacity exists to carry out the data collection. The monetization of outcomes is an integral part of the SROI analysis. This process of attaching monetary value to outcomes is inherently subjective. In particular, the determination of proxies and its data sources is based on the analyst’s discretionary judgment (Maier et al., 2015). As such to increase the credibility of the analysis, it is useful

to be transparent of the process, aware of the assumptions taken and limitations of its procedures (Scholten, Nicholls, Olsen & Galimidi, 2006).

Step 4 – Establishing impact After quantifying outcomes, it is important to determine the impacts that are directly attributable to the organization’s intervention. This issue centers on whether the activities of the intervention lead to its desired outcomes.

Step 5 – Calculating the SROI ratio Finally, the SROI ratio can be calculated using the following equation.

SROI = Present Value of Benefits / Value of Inputs

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Definitions Activities

The programs carried out by the organization to produce desired outcomes

Attribution

How much of the outcome was caused by the contribution of other organizations or people

Deadweight

Amount of the outcome that would have happened even if the organization’s activity had not taken place

Indicator

A quantifiable measure of an outcome

Inputs

The resources needed to carry out the organization’s activities

Outcomes

The desired changes resulting from the organization’s activities; The outcomes could be described as short-term changes, intermediate-term or long term results.

Outputs

The direct tangible results of the activities (i.e. what was carried out)

Stakeholder

People or organizations that affect or are affected by the organization’s activities

Data Collection To conduct the SROI analysis, the student researcher spent three months in Ollantaytambo, Peru from May to August 2016. The student researcher worked with various Awamaki’s staff members to obtain data relevant to the analysis. The student researcher did not conduct any primary research. She utilized secondary data that has already been collected by Awamaki through non-randomized quantitative surveys, focus groups, key informant interviews and observations. The student researcher also conducted secondary research by researching literature to come up with appropriate financial proxies and calculate deadweight figures.

Social Return on Investment Step 1: Identifying Stakeholders The student researcher consulted with Awamaki’s staff and studied the organization’s objectives to identify the primary stakeholders. The primary stakeholders are divided into two distinct groups (i) direct beneficiaries who benefit from Awamaki’s programs and (ii) supporting stakeholders who contribute to Awamaki’s operation. Many of these direct beneficiaries participate in and benefit from

the women’s cooperative and sustainable tourism programs. As for the supporting stakeholders, they are essential to the operating and running of Awamaki’s programs. For the purposes of the SROI analysis, the efforts of the supporting stakeholders are reflected as the value of inputs rather than outcomes. The SROI analysis will only focus on the direct beneficiaries for the computation of outcomes.

Primary Stakeholders Direct Beneficiaries

Supporting Stakeholders

(People affected by Awamaki’s programs)

(People/Organizations that affect Awamaki’s programs)

Women weavers in Kelkanka, Songuilay and Away Puna – These women form three different cooperatives with which Awamaki works with.

Awamaki’s staff and members of its Board of Directors Private Donors and Grant Organizations

Women knitters in Puente Inca and Rumira – These women form two different cooperatives with which Awamaki works with

Awamaki U.S. staff and members of its Board of Directors

Women spinners in Huilloc

Volunteers

Homestay Families in Ollantaytambo Spanish Teachers Local Artisans - Daniel Sonocco (Expert Weaver), Irma and Tina (Cooking Class Teachers), Julio (Woodcarving Teacher) and Andres (Teacher of Natural Dyes Workshops) Volunteers Tourists

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Step 2: Mapping Outcomes: Theory of Change The descriptive diagram (refer to Table 1: Awamaki’s Theory of Change) depicts Awamaki’s organizational theory of change. The theory of change sets out to explain the theory and assumptions underlying Awamaki’s programs.

It also expresses the anticipated changes in the communities as perceived by Awamaki. The student researcher carefully studied the outcomes outlined in the theory of change to identify the changes for each stakeholder group. Based on the availability of data already collected by Awamaki, the outcomes selected for calculation in the SROI analysis with regard to each stakeholder group are represented in the next diagram (refer to Table 2: Direct Beneficiaries’ Map of Outcomes). Kindly note not all outcomes illustrated in Table 1 are included in the SROI calculation. For the purpose of this analysis, the specific outcomes monetized are based on the availability of data already collected by Awamaki. For future research, it will be beneficial to conduct additional data collection to monetize the remaining outcomes currently unaccounted for in the analysis.

Table 1: Awamaki’s Theory of Change Inputs: Money, Time, Volunteers, Awamaki’s staff Activity

Awamaki orders products from cooperatives to sell in our fair trade store and to export.

Awamaki runs tours to local cooperative centers and organizes other sustainable tourism opportunities.

Awamaki works with cooperatives to gain autonomy through formal skills training workshops.

Awamaki runs volunteer programs to increase visibility of its work in the region and to enhance volunteers’ knowledge on Andean culture and crafts.

Impact

Outcome

Output Short-term

Intermediate

Changes in knowledge

Changes in behavior

# of product orders # of retail partners # of countries sold to # of women we work with

Women increase their knowledge and skills in product development and quality control.

Women in the cooperatives experience an increase in income from product sales and tourism.

# of tours conducted # of sales made by women during the tours # of cooking and woodcarving classes conducted # of homestays # of Spanish classes

There is an increase in standard of living, purchasing power, and education for their children.

Women and tourists engage in cultural exchange and gain meaningful cultural experiences.

Women are more aware of their rights as women producers and indigenous people, and gain an understanding that their skills have economic potential.

There is preservation of traditional Andean artisanal skills and culture.

# of women attending the workshops # of cooperatives at each impact model level # of independent clients Type of workshop conducted # of tours conducted by the cooperatives # of orders received by the cooperatives # of volunteers

Changes in conditions

Women increase their knowledge and skills in business and organizational leadership.

The cooperatives develop steady working relationships with retailers independently of Awamaki.

Women independently manage cooperatives with improved business practices and product quality.

The volunteers gain a deeper understanding of the local culture and the importance of Awamaki’s work in the region.

The volunteers experience personal satisfaction and further develop their personal relations and skills.

The volunteers continue to support and raise awareness of Awamaki in the long term. The volunteers continue to impact the community in a positive way.

Theory Awamaki conducts four main activities, which can be organized into three broad programs: women’s cooperative program, sustainable tourism program and volunteer program. Related to its women’s cooperative program, Awamaki purchases products from the cooperatives at fair pricing for sale in its fair trade store and international sales. At the same time, it works with cooperatives through skills development workshops and assists the cooperatives in gaining sufficient business skills to operate independently of Awamaki. Awamaki also runs a sustainable tourism program which includes guided visits to the Quechua women communities, Spanish lessons, homestays, and woodcarving and cooking workshops. The guided tours also allow the tourists to learn from and interact directly with the artisan women. Aside from working with its targeted beneficiaries in the greater Ollantaytambo region, Awamaki provides invaluable volunteer and internship opportunities all around the year in different areas of its operations. Awamaki works with individual students, interested volunteers from all walks of life and schools in organizing volunteer opportunities tailored to the

organization’s needs.

In the short term, the women’s cooperative program will increase the rural artisan women’s knowledge and skills in product development, quality control, business and organizational leadership. The sustainable tourism program will increase cultural interaction between local artisans and tourists. In the intermediate term, through both the women’s cooperative program and the sustainable tourism program, the development of relevant skills will not only lead to an increase in product and tourism sales, the women are also able to develop working relationships with clients independently of Awamaki. In addition, through the increased cultural interaction, the artisan women are more aware of their rights as women producers and indigenous people. In the long run, the increase in income and cultivation of client relationships will improve the lives of the women and their families through an increased standard of living. In addition, Awamaki’s long-term focus on producing high-quality artisanal handmade textiles will also help to preserve the traditional Andean weaving technique and culture.

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Assumptions There are a number of assumptions underlying Awamaki’s theory of change. For the women’s cooperative program, Awamaki assumes the women are interested to learn and acquire additional skills through the training workshops offered by Awamaki. It is likely the women will experience the changes in different magnitudes depending on their level of participation in the workshops and personal motivation to learn.

Awamaki also assumes that the development in skills and increased engagement with tourists will lead to an increase in product sales. This is based on the assumption there is a pool of interested purchasers/retailers and the skills/ design workshops provided by Awamaki is the sole differentiating factor that motivates these purchasers/retailers to work with Awamaki as opposed to other social enterprises. It does not take into account there are other factors that affect their purchasing motivation, such as price competitiveness, delivery timeframe and appeal of other similar fair trade textile social enterprises.

As for the sustainable tourism program, it assumes

that tourists experience positive cultural exchanges with the women and the women themselves similarly undergo positive experiences such as increased confidence in the marketability of their handmade products. For the volunteer program, Awamaki assumes the volunteer experience positively impacts the volunteers’ lives and they are likely to become ongoing ambassadors of Awamaki’s mission and work. The theory of change does not take into account unintended or negative outcomes. Kindly note that this discussion of assumptions is not exhaustive.

Monetized Outcomes One of the guiding principles for conducting an SROI analysis is to only include what is material. It is logistically difficult to monetize all the outcomes experienced by all the stakeholders, unless primary data collection tools are utilized to collect relevant information needed. As such, for the purpose of our SROI analysis, it is material to only include outcomes derived from direct beneficiaries rather than supporting stakeholders. Hence, Table 2 sets out in detail the list of direct beneficiaries and their relevant activities, outputs and desired outcomes that will be included in the SROI calculation.

Table 2: Direct Beneficiaries’ Map of Outcomes STAKEHOLDERS

INPUTS

ACTIVITIES

Women weavers in Kelkanka, Songuilay and Away Puna

Money, time, volunteers, Awamaki’s staff

Awamaki orders products from cooperatives to sell in our fair trade store and to export.

Women knitters in Puente Inca and Rumira

Money, time, volunteers, Awamaki’s staff

Awamaki orders products from cooperatives to sell in our fair trade store and to export.

Awamaki works with cooperatives to gain autonomy through formal skills training workshops.

Women spinners in Huilloc

Money, time, volunteers, Awamaki’s staff

Awamaki orders products from cooperatives to sell in our fair trade store and to export.

Awamaki works with cooperatives to gain autonomy through formal skills training workshops.

Homestay Families in Ollantaytambo

STAKEHOLDERS

Money, time, volunteers, Awamaki’s staff

INPUTS

OUTPUTS

OUTCOMES

# of textile orders made by Awamaki Women in the cooperatives # of retail partners and independent experience an increase in income clients from order sales, tourism and yarn # of countries sold to order sales (alpaca fleece).

Awamaki works with cooperatives to # of women Awamaki works with gain autonomy through formal skills Amount of alpaca fleece ordered Women are more aware of their # of products sold in store and training workshops. rights as women producers and wholesale indigenous people, and gain an # of women attending the workshops understanding that their skills have economic potential. # of textile orders made by Awamaki # of retail partners and independent clients # of countries sold to # of women Awamaki works with # of products sold in store and wholesale # of women attending the workshops

Women in the cooperatives experience an increase in income from order sales and tourism.

# of textile orders made by Awamaki # of retail partners and indepenent clients # of countries sold to # of women Awamaki works with # of products sold in store and wholesale # of women attending the workshops

Women in the cooperatives experience an increase in income from order sales and tourism.

Awamaki runs tours to local # of homestays cooperative centers and provide other sustainable tourism opportunities.

ACTIVITIES

OUTPUTS

Women are more aware of their rights as women producers and indigenous people, and gain an understanding that their skills have economic potential.

Women are more aware of their rights as women producers and indigenous people, and gain an understanding that their skills have economic potential.

Local women experience an increase in income from tourism.

OUTCOMES

Spanish Teachers

Money, time, volunteers, Awamaki’s staff

Awamaki runs tours to local cooperative centers and provide other sustainable tourism opportunities.

# of lessons conducted

Local women experience an increase in income from tourism activities.

Local Artisans - Daniel Sonocco (Expert Weaver), Irma and Tina (Cooking Class Teachers) and Julio (Woodcarving Teacher), Andres (Teacher of Natural Dyes Workshops), Drivers, Architect Leonardo

Money, time, volunteers, Awamaki’s staff

Awamaki runs tours to local cooperative centers and provide other sustainable tourism opportunities.

# of classes conducted

Local artisans and families experience an increase in income from tourism activities.

Volunteers, Service groups and other groups

Money, time, volunteers, Awamaki’s staff

Awamaki runs volunteer program to increase visibility of its work in the region and to enhance volunteers’ knowledge on Andean culture and crafts.

# of volunteers

Women and volunteers engage in cultural exchange and gain meaningful cultural experiences.

Tourists

Money, time, volunteers, Awamaki’s staff

Awamaki runs tours to local cooperative centers and provide other sustainable tourism opportunities.

# of tourists

Women and tourists engage in cultural exchange and gain meaningful cultural experiences.

Women weavers in Huilloc and Patacancha

Money, time, volunteers, Awamaki’s staff

Awamaki runs tours to local cooperative centers and provide other sustainable tourism opportunities.

# of sales made by the women during the tours

Women in the cooperatives experience an increase in income from product sales during tours.

Women weavers in Songuilay

Money, time, volunteers, Awamaki’s staff

Awamaki orders products from cooperatives to sell in our fair trade store and to export.

# of textile orders made by Awamaki # of retail partners # of countries sold to # of women Awamaki works with

There is an increase in the standard of living.

Women regain traditional skills in natural dyes.

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Step 3: Developing outcome indicators and evidencing the outcomes Based on Table 2: Direct Beneficiaries’ Map, 14 outcomes were monetized and included in the SROI analysis. The process for calculating the value of each outcome is evidenced below. The values are calculated in Peruvian Nuevos Soles (PEN) and converted into United States Dollar (USD) for ease of reference. An exchange rate of 1 USD to 3.19 PEN is used (average exchange rate in 2015).

The numbers are also adjusted for purchasing power parity (PPP). PPP is an economic theory that allows for standardization between currencies (The Economic Times, n.d.). It takes into account the purchasing power of each currency and makes adjustments to the currency exchange rates so that a commodity costs the same in two different countries. For the purposes of this SROI analysis, a PPP metric of 1.521 is used (World Bank, 2015).

All values in PEN are first converted to USD at the exchange rate noted above and then adjusted for PPP by multiplying each of the values by 1.521.

Kindly note that all values are rounded to the nearest 2 decimal points.

1. Increase in income of the women who work in the weaving cooperatives (Kelkanka, Songuilay and Away Puna) from order sales, tourism opportunities and yarn order sales (alpaca fleece) – To note: Only the Songuilay cooperative receives additional income from tourism opportunities. Awamaki is currently working with cooperatives in Kelkanka and Away Puna to develop tourism opportunities 2. Increase in income of the women who work in the knitting cooperatives (Puente Inca and Rumira) from order sales 3. Increase in income of the women who work in the spinning cooperative (Huilloc) from order sales and tourism opportunities – To note: Only Huilloc and Songuilay receive additional income from tourism opportunities.

4. Increase in income of the women in Songuilay and Huilloc from product sales during tours 5. Increase in income for homestay families 6. Increase in income for Spanish teachers 7. Increase in income for local artisans (Daniel

Sonocco – Expert weaver) 8. Increase in income for local artisans (Irma and Tina – Cooking class teachers) 9. Increase in income for local artisans (Julio – Woodcarving teacher) 10. Increase in income for local artisans (Andres – Teacher of natural dyes workshops) 11. Value of cultural exchange (Tourists) 12. Value of volunteering (volunteers, service groups and other groups) 13. Increase in wealth: Value of assets acquired by women working in the Songuilay cooperative 14. Value of design input and increase in marketability of products 15. Increase in income for drivers from tourism opportunities 16. Value of the weaving centers in Rumira, Puente Inca and Songuilay 17. Value of women’s empowerment 18. Value of workshops by Seattle International Foundation Outcomes This section sets out the indicator used and the monetization calculation of each outcome. For an in-depth layout of the SROI analysis which include the document sources where the numbers are obtained, please refer to a separate excel document titled SROI Analysis.

To recap definitions, deadweight is the measure of the amount of outcome that would have happened even if the activity had not taken place and attribution is the measure of how much of the outcome was caused by the contribution by other organizations (Nicholls et al., 2012).

Increase in income of the women who work in the weaving cooperatives (Kelkanka, Songuilay and Away Puna) from order sales, tourism opportunities and yarn order sales (alpaca fleece) Number of Weavers

Financial Indicator

Total Value in 2015

Total Value in 2015 (USD)

Total Value in 2015 (USD Adjusted for PPP)

Deadweight

Attribution

94 Artisan Women

Total amount paid to women for order sales, tourism opportunities and yarn order sales

PEN66,487.50

$20,842.48

$31,701.41

0%

100%

The financial indicator is the total amount paid to the women for order sales, tourism opportunities and yarn order sales. Awamaki orders woven products from the women at fair pricing for sale in its fair trade store and purchases alpaca fleece from these same weaving cooperatives for its own handspun line of products. For its tours, Awamaki pays the women for guiding the weaving lessons, participating in weaving demonstrations and opening their homes to tourists. If the activities led

by Awamaki did not happen, these women weavers will not be receiving this additional income. To

Awamaki’s knowledge, the women do not engage in additional income generating activity other than participating in agricultural activity for sustenance. In addition, there are no other local or international organization that works with and purchases weavings from these weavers. Hence, 100% of the figure can be attributed to Awamaki.

Increase in income of the women who work in the knitting cooperatives (Puente Inca and Rumira) from order sales Number of Knitters

Financial Indicator

Total Value in 2015

Total Value in 2015 (USD)

Total Value in 2015 (USD adjusted for PPP)

Deadweight

Attribution

41 Artisan Women

Total amount paid to women for order sales

PEN 46,660.30

$14,627.05

$22,247.75

0%

100%

The financial indicator is the total amount paid to the women knitters for order sales. Awamaki orders knitted products from the women at fair pricing for sale in its fair trade store. No deadweight is

subtracted from this figure. Given the proximity of Puente Inca and Rumira to Ollantaytambo, some of the women do engage in additional income generating activity such as selling their agricultural Pg. 15

produce in the local market or being cleaning ladies for the municipality. However, for the latter, these municipality jobs operate on a rotation basis and some of the women may only have an opportunity to work for the municipality once a month every few years. As such, Awamaki’s work with these women knitters represent a stable longterm income of which they would otherwise not receive. If this activity did not happen, the women

knitters will not be receiving this additional income. Therefore, no deadweight is subtracted from this figure. In addition, there are no other local or international organization that works with and purchases knitted products from them. Hence, 100% of the figure can be attributed to Awamaki.

Increase in income of the women who work in the spinning cooperative (Huilloc) from order sales and tourism opportunities Number of Spinners

Financial Indicator

Total Value in 2015

Total Value in 2015 (USD)

Total Value in 2015 (USD adjusted for PPP)

Deadweight

Attribution

13 Artisan Women

Total amount paid to women for order sales and tourism opportunities

PEN 5,873.30

$1,841.16

$2,800.40

0%

100%

The financial indicator is the total amount paid to the women spinners for order sales and tourism opportunities. Awamaki orders products from the women at fair pricing for sale in its fair trade store. For its tours, Awamaki pays the women for guiding the weaving lessons, participating in weaving demonstrations and opening their homes to tourists. No deadweight is subtracted from this figure. If the activities led by Awamaki

did not happen, the women spinners will not be receiving this additional income. To Awamaki’s knowledge, the women do not engage in additional income generating activity other than participating in agricultural activity for sustenance. In addition, there are no other local or international organization that works with and purchases products from these spinners. Hence, 100% of the figure can be attributed to Awamaki.

Increase in income of the women in Songuilay and Huilloc from product sales during tours Number of Spinners

Financial Indicator

87 Artisan Women

Total amount women receive from the sales of their products during the tours

Total Value Total Value Total Value in 2015 in 2015 in 2015 (USD) (USD adjusted for PPP) PEN $14,075.24 $21,408.43 44,900.00

The financial indicator is the total amount women receive from the sales of their products during the tours conducted by Awamaki. No deadweight is subtracted from this figure. If Awamaki did

Deadweight

Attribution

0%

100%

not conduct these tours to the communities, the women from these cooperatives will not have the consistent opportunity to showcase their handmade products and receive this additional long-term

income. On the side, there are ad hoc tourists that pass through the community and the women may have the occasional opportunity to showcase their products to these tourists. However, these sales are few and far in between. It was difficult to obtain information from the women on how much ad hoc sales were conducted outside of Awamaki’s guided tours. If such numbers were to be obtained

in future, it would be interesting to discuss how much of the ad hoc tourism can be attributed to Awamaki’s marketing and work in the region. In addition to Awamaki’s knowledge, there are no other local or international tour companies that organizes guided tours specifically to these rural communities. Hence, 100% of the figure can be attributed to Awamaki.

Increase in income for homestay families Number of homestay families

Financial Indicator

Total Value in 2015

Total Value in 2015 (USD)

Total Value in 2015 (USD adjusted for PPP)

Deadweight

Attribution

22 Families

Total amount paid to the families for homestays hosted

PEN 56,987.00

$17,864.26

$27,171.54

0%

100%

The financial indicator is the total amount paid to the families for the number of homestays hosted. No deadweight is subtracted from this figure. If Awamaki did not arrange these homestay opportunities with these local families, these families will not be receiving this additional

income from tourism. In addition, there are no other local or international tour companies that organizes such homestay opportunities in Ollantaytambo, Peru. Hence, 100% of the figure can be attributed to Awamaki.

Increase in income for spanish teachers Number of homestay families

Financial Indicator

Total Value in 2015

Total Value in 2015 (USD)

Total Value in 2015 (USD adjusted for PPP)

Deadweight

Attribution

5 Spanish teachers

Total amount paid to the Spanish teachers for number of lessons conducted

PEN 13,013.00

$4,079.31

$6,204.63

0%

100%

The financial indicator is the total amount paid to the Spanish teachers for the number of lessons conducted. Awamaki did not provide for these Spanish lessons in Ollantaytambo, these teachers will not be receiving this additional income. Hence, no deadweight is subtracted from this figure. If In addition, there are no other local or international

schools that provides Spanish lessons to tourists in Ollantaytambo, Peru. There are however teachers that provide Spanish lessons in an adjacent town, Urubamba located 30 minutes away by bus from Ollantaytambo, Peru. Hence, 100% of the figure can be attributed to Awamaki.

Pg. 17

Increase in income for local artisans (Daniel Sonocco – Expert weaver) Expert Weaver

Financial Indicator

Total Value in 2015

Total Value in 2015 (USD)

Total Value in 2015 (USD adjusted for PPP)

Deadweight

Attribution

Daniel Sonocco

Total amount paid to Daniel Sonocco for the number of woven products sold in the store

PEN 18,055.00

$5,659.87

$8,608.67

0%

100%

The financial indicator is the total amount paid to Daniel Sonocco for the number of woven products sold in the store. If Awamaki does not sell his woven products in the store, Daniel will not be receiving this additional income.

Hence, no deadweight is subtracted from this figure. In addition, there are no other shops in Ollantaytambo, Peru that are selling his woven products. Awamaki stocks Daniel’s products as his

weavings are distinct from the woven products produced by the cooperatives. For his weavings, Daniel uses alpaca wool as opposed to sheep wool which is used by the cooperatives for their woven products. Given the nature of material used in his weavings, his weavings are priced higher than the weavings produced by the women cooperatives.

Hence, 100% of the figure can be attributed to Awamaki.

Increase in income for local artisans (Irma and Tina – Cooking class teachers) Cooking Class Teachers Tina and Irma

Financial Indicator

Total Value in 2015

Total Value in 2015 (USD)

Total Value in 2015 (USD adjusted for PPP)

Deadweight

Attribution

Total amount PEN 4,560.00 paid to the cooking class teachers for number of classes conducted

$1,429.47

$2,174.22

0%

100%

The financial indicator is the total amount paid to the cooking teachers for the number of cooking lessons conducted. No deadweight is subtracted from this figure. If Awamaki does not offer cooking lessons with these local women, these cooking teachers will not be receiving this additional income. In addition, there are no other local or international tourism companies that offer cooking

classes in Ollantaytambo, Peru. Hence, 100% of the figure can be attributed to Awamaki.

Increase in income for local artisans (Julio – Woodcarving teacher) Woodcarving Teacher

Financial Indicator

Total Value in 2015

Total Value in 2015 (USD)

Total Value in 2015 (USD adjusted for PPP)

Deadweight

Attribution

Julio

Total amount paid to the woodcarving teacher for number of lessons conducted

PEN 1,500.00

$470.22

$715.20

0%

100%

The financial indicator is the total amount paid to the woodcarving teacher for the number of woodcarving lessons conducted in 2015. No deadweight is subtracted from this figure. If Awamaki does not offer woodcarving lessons, Julio will not be receiving this additional income. In

addition, there are no other local or international tourism companies that offer woodcarving classes in Ollantaytambo, Peru. Hence, 100% of the figure can be attributed to Awamaki.

Increase in income for local artisans (Andres – Teacher of natural dyes workshops) Teacher of natural dyes workshop

Financial Indicator

Total Value in 2015

Total Value in 2015 (USD)

Total Value in 2015 (USD adjusted for PPP)

Deadweight

Attribution

Andres

Total amount paid to Andreas for the number of natural dyes workshops conducted

PEN 600.00

$188.09

$286.08

0%

100%

The financial indicator is the total amount paid to Andres for the number of natural dye workshops conducted in 2015. Awamaki hires Andres, a local natural dye expert to conduct natural dyes workshops with the cooperatives. Over the years, many of the artisan women in the cooperatives have not retained the knowledge of using natural dyes. As such, Awamaki hopes to increase the value of the weavings by retraining the women in natural dyeing processes using dye plants and insects. No deadweight is subtracted from this

figure. If Awamaki does not hire Andres to conduct these workshops, Andres will not be receiving this additional income. In addition, there are no other local or international companies that hires Andres for this specific purpose in Ollantaytambo, Peru.

Hence, 100% of the figure can be attributed to Awamaki.

Pg. 19

Value of cultural exchange (Tourists) Number of tourists

Financial Proxy

Total Value in 2015

Total Value in 2015 (USD)

Total Value in 2015 (USD adjusted for PPP)

Deadweight

Attribution

807 Tourists (Note: Number does not include tourists in December 2015)

Net amount PEN $8,300.00 $12,624.30 0% 100% tourists pay 27,307.00 for tours (minus costs paid to relevant partners in tourism - teachers, weavers, homestays etc) The financial proxy for cultural exchange is the as part of this SROI analysis. As such, the figure total net amount paid by the tourists for the tours used in this particular circumstance is the net (minus costs paid to relevant local partners in amount tourists pay for the tours. In addition, tourism –local artisan teachers, weavers, homestays no deadweight is subtracted from this figure. etc.). It is difficult to accurately place a monetary The tourists specifically chose Awamaki for the value on cultural exchange. However, a possible unique tours that are offered. Although there financial proxy that can be used to estimate the are other local or international tour companies value of cultural exchange is the amount tourists in Ollantaytambo, Peru that provide tourism are willing to pay for the tours offered by Awamaki opportunities, none of the other organizations or (Throsby, 2003). Given the tour prices include companies provide similar community tours or administrative costs paid to local partners, it is workshops as Awamaki. Hence, 100% of the figure important to deduct these costs so as to avoid can be attributed to Awamaki. double counting. The costs paid to local partners are accounted for in other monetized outcomes Value of volunteering Number of volunteers

Financial Proxy

39 Volunteers Total amount volunteers have to pay to volunteer with Awamaki

Total Value in 2015

Total Value in 2015 (USD)

Total Value in 2015 (USD adjusted for PPP)

Deadweight

Attribution

PEN 336,134.33

$102,533.23

$155,953.04

0%

100%

The financial proxy for the value of volunteering is the total amount volunteers (individuals), service groups and other volunteer groups paid in order to volunteer with Awamaki. Similar to valuing cultural

exchange, it is difficult to accurately monetize the value of volunteers’ experience. However, a possible financial proxy that can be used to estimate the value of volunteering is the amount volunteers are

willing to pay in order to volunteer with Awamaki (Manetti, Bellucci, Como, & Bagnoli, 2014). All volunteers are required to pay a volunteer program fee, such amounts varying according to the amount of time they will be volunteering with Awamaki.

Given that the volunteers chose to pay the volunteer fee in order to specifically volunteer with Awamaki, no deadweight is subtracted from this figure. For the YAPSA service groups, the volunteer trips are paid for through a $50,000 grant by the US Department of State, Bureau of Educational and

Cultural Affairs. As such, the student researcher used the grant amount in 2015 as an indicator for the YAPSA participants’ value of the volunteering experience. As for the other volunteer groups, the students themselves are similarly required to pay a volunteer program fee, although the fees differ from the individual volunteering fees. In addition, there are no other similar purpose social enterprises in Ollantaytambo, Peru. Hence, 100% of the figure can be attributed to Awamaki.

Increase in wealth: Value of assets acquired by women working in the Songuilay cooperative Number of women

41 women

Financial Proxy

Total Value in 2015

Total Value in 2015 (USD)

Total Value in 2015 (USD adjusted for PPP)

The value PEN 177,643 $16,706.24 $25,410.19 of assets (Based on the (Based on the acquired 30% = 30% value) 30% value) (productive PEN and non53,292.90 productive) by the women and their families

The financial proxy used to value increase in wealth in the Songuilay cooperative is the total value of assets (productive and non-productive) acquired by the women and their families in 2015.

Wealth is determined by the total market value of accumulated resources (Investopedia, n.d.). As such, to calculate the increase in wealth of the Songuilay cooperative, the student researcher analyzed the number of assets accumulated in 2015 and multiplied the value of each asset by its market worth.

After careful deliberation with her supervisor at Awamaki, the student researcher arrived at the deadweight percentage of 70%. To arrive at this percentage, the student researcher utilized the following methodology. In 2014, the average monthly income of rural women in Peru is 414.2 PEN (INEI, 2014e). On the other hand, the average monthly income of rural men in Peru is 735.8

Deadweight

Attribution

70%

100%

PEN (INEI, 2014f). Hence, it is approximated that the average monthly income of a rural household (assuming one productive pair: husband and wife) is 1150 PEN. In 2015, an artisan woman working with Awamaki earns an average monthly income of 94 soles from sale orders and tourism income (G. Debernardini, personal communication, June 16, 2016).

Hence, what she earns from Awamaki makes up approximately 8% of the average monthly income of the household. However, given that majority of the women Awamaki works with do not have additional avenues of income, the income they earn from Awamaki constitutes a more significant portion of their household income which is approximated at 30%.

Pg. 21

Value of design input and increase in marketability of products Number of products sold

Financial Proxy

Total Value in 2015

Total Value in 2015 (USD)

Total Value in 2015 (USD adjusted for PPP)

Deadweight

Attribution

3389 Products

Amount of the mark-up on products sold in store and the costs to conduct the design workshops with the cooperatives

PEN 122,343.26

$37,195.93

$56,575.01

0%

100%

The financial proxy to value Awamaki’s design input and an increase in the marketability of products is the amount spent to conduct design workshops with the cooperatives and the amount of mark-up on products sold in Awamaki’s fair trade store. If Awamaki did not work with these cooperatives on product design and color palette through the workshops, it will be difficult to mark-

up the pricings on these handmade products.

Hence, no deadweight is subtracted from this figure. In addition, there are no other organizations in Ollantaytambo, Peru that works with the same cooperatives to increase the marketability of their products. Hence, 100% of the figure can be attributed to Awamaki.

Increase in income for drivers from tourism opportunities Number of drivers

Financial Indicator

Total Value in 2015

Total Value in 2015 (USD)

Total Value in 2015 (USD (adjusted for PPP)

Deadweight

Attribution

5 Drivers

Total approximate amount Awamaki paid to the drivers

PEN 14,400.00

$4,514.11

$6,865.96

0%

100%

The financial indicator is the total amount paid to the drivers who drive the tourists to Huilloc and Songuilay. Given that the number of tours conducted fluctuate during seasons, the drivers hold other income-generating jobs. However, no deadweight is subtracted from this figure as Awamaki’s engagement of these drivers provide them with a consistent long term income.

To Awamaki’s knowledge, there are no other organizations in Ollantaytambo, Peru that engages the same drivers on a long term basis. Hence, 100% of the figure can be attributed to Awamaki.

Pg. 22

Value of the weaving centers in Rumira, Puente Inca and Songuilay Name of architect

Financial Proxy

Total Value in 2015

Total Value in 2015 (USD)

Total Value in 2015 (USD adjusted for PPP)

Deadweight

Attribution

Leonardo

Total amount paid to Leonardo

PEN 115,150.00

$35,000.00

$53,235.00

0%

100%

The financial proxy for valuing the weaving centers is the amount paid to Leonardo, the architect who designed the weaving centers in Rumira, Puente Inca and Songuilay. In 2015, all three weaving centers were in the process of being built. Hence, it is difficult to calculate the social value of the weaving centers then as the benefits of the weaving centers will only be demonstrated over time. The purpose of building the weaving centers in each of the cooperative communities is to empower and provide the women

with their own meeting space to hold weaving classes, store their products and gather for meetings. As no weaving centers will be built without Awamaki’s initiative, no deadweight is subtracted from this figure. In addition, there are no local or international organizations that works directly with the same cooperatives. Hence, 100% of the figure can be attributed to Awamaki.

Value of women’s empowerment Number of workshops

Financial Proxy

Total Value in 2015

Total Value in 2015 (USD)

Total Value in 2015 (USD adjusted for PPP)

Deadweight

Attribution

1 workshop in 5 cooperatives (other than Away Puna)

Total amount spent on conducting the women’s empowerment workshop

PEN200

$62.70

$95.36

0%

100%

The financial proxy for valuing women’s empowerment is the amount spent on conducting the women empowerment workshops. The last women’s empowerment workshop in Away Puna was completed this year in July 2016. It is inherently difficult to monetize the value of women’s empowerment. For one, the conceptualization of women’s empowerment is context specific (Malhotra, Schuler and Boender, 2002). For Awamaki, the

women’s empowerment workshop focuses on notions of fair trade and the value of empowering women through economic opportunities. The workshop emphasizes autonomy and the value of the weaving craft. It stresses women’s ability to make their own decisions and address matters of importance to themselves and their families with the money they earned. Notably, this financial proxy only captures a very conservative portion in the value of empowering

women. However, given the unavailability of data to capture the full value of women’s empowerment, this is a potential area for future researchers to design data collection tools and look into. Given that Awamaki is the only organization that conducts these women empowerment workshops with the cooperatives, no deadweight is subtracted from this figure. In addition,

there are no local or international organizations that work directly with these women. Hence, 100% of the figure can be attributed to Awamaki.

Value of workshops by Seattle International Foundation

Number of women

Financial Proxy

Total Value in 2015

Total Value in 2015 (USD)

Total Value in 2015 (USD adjusted for PPP)

Deadweight

Attribution

24 women in Total amount PEN the Rumira spent on 19,937.50 cooperative conducting (Based on the all the 50% value) workshops

$12,500.00 50% =$6,250.00

$9,506.25 (Based on the 50% value)

0%

50%

The financial proxy for valuing the workshops conducted by Seattle International Foundation in Rumira is the cost of conducting the workshops.

The workshops focused on administration and management (tax regulations and organization of association), production skills (quality control) and product commercialization (which includes basic computer skills, marketing, product export and product costing). The purpose of the workshops was to provide Rumira cooperative with additional business skills to operate as an independent entity outside of Awamaki. Awamaki partnered with Centro Bartolome de las Casas (CBC), the Center of Andean

Regional Studies, an organization that works across the region to develop and implement educational programs for indigenous cooperatives. Without the activity conducted, the Rumira cooperative would not have acquired these valuable business skills. Hence, no deadweight is subtracted from this figure. However given that Awamaki outsourced the training sessions to CBC, the student researcher attributed 50% of the outcome to CBC. This is because without the joint collaboration of the two organizations, it would not have been possible to obtain the funding or implement the trainings.

Pg. 24

Organizational Investment The total value of expenses from 1 January 2015 to 31 December 2015 was US$370,000 (G. Debernardini, personal communication, June 27, 2016).

SROI Ratio The organization’s SROI ratio can be calculated using the following formula.

SROI =

Present Value of Benefits ------------------------------------Value of Inputs

=

US$443,583.45 ----------------------------- = US$370,000

$1.20

As shown in Step 3: Evidencing Outcomes section of this report, the total monetized present value of benefits (adjusted for PPP) is US$443,583.45 and the value of inputs is US$370,000. When the present value of benefits is divided by the value of inputs, the SROI value is $1.20.

That means, for every dollar invested in Awamaki in 2015, the social and economic return on investment is $1.20.

Specifically, for the women’s cooperative program, the SROI ratio is calculated as follows.

SROI =

Present Value of Benefits ------------------------------------- = Value of Inputs

US$168,747.84 ----------------------------- = US$109,176.96

$1.55

To calculate the value of benefits that specifically pertain to the women’s cooperative program, the student researcher only utilized these monetized outcomes set out herein.

Increase in income of the women who work in the weaving cooperatives (Kelkanka, Songuilay and Away Puna) from order sales and yarn order sales (alpaca fleece)

PEN52,496.00

Total Value in 2015 Total Value in (USD) 2015 (USD) (Adjusted for PPP) $16,456.43 $25,030.22

Increase in income of the women who work in the knitting cooperatives (Puente Inca and Rumira) from order sales (includes the people who sew)

PEN46,660.3

$14,627.05

$22,247.74

Increase in income of the women who work in the spinning cooperative (Huilloc) from order sales

PEN3716.80

$1,165.14

$1,772.18

Increase in income for local artisans (Andres – Teacher of natural dyes workshops)

PEN600.00

$188.09

$286.08

Value of design input and increase in marketability of products

PEN122,343.26

$37,195.93

$56,575.01

Value of the weaving centers in Rumira, Puente Inca and Songuilay

PEN115,150.00

$35,000.00

$53,235.00

Value of women’s empowerment

PEN200

$62.70

$95.36

Value of workshops by Seattle International Foundation

PEN19,937.50 (Based on the 50% value)

$12,500.00 50% =$6,250.00

$9,506.25 (Based on the 50% value)

Total

PEN361,103.86

$110,945.34

$168,747.84

Total Value in 2015

Outcomes

In 2015, the value of inputs for operating the women’s cooperative program was US$109,176.96 (G. Debernardini, personal communication, June 27, 2016). The value of inputs included the overhead costs of operating both the store and the wholesale operation as well as the total production costs.

When the present value of benefits is divided by the value of inputs, the SROI value is $1.55.

That means, for every dollar invested in the women’s cooperative program in 2015, the social and economic return on investment in $1.55.

Conclusion The findings suggest Awamaki has generated positive social and economic outcomes for its direct beneficiaries in 2015. Based on the findings, the three largest changes generated by the organization were (i) the increase in marketability of the products, (ii) the value of volunteering and (iii) the increase in income of the women cooperatives from product orders and tourism sales.

In particular, the positive returns on the women’s cooperative program clearly indicate the integral role Awamaki plays in bridging rural artisan women to the international market. Through Awamaki’s noteworthy emphasis on modern designs and color palettes, Awamaki is able to effectively communicate the value of its artisanal handmade products and convey the story of the women they work with to an international audience. It is clear the women benefit from the additional income earned from Awamaki’s marketing and sales efforts. The positive social return on the women’s cooperative program is encouraging given that the program is financially

operating below costs. It illustrates the capacity for Awamaki to improve on its program, increase its efficiencies and further enhance its impact on the women cooperatives.

It is also interesting to note that volunteering plays an important role in Awamaki’s work. Given that Awamaki’s core staff comprises a small team of approximately 10 people, volunteers play a key role in the running of Awamaki. In addition, volunteers also add value as effective communicative mouthpieces for the organization’s work. In sum, the SROI analysis is one useful analytical tool to account for an organization’s social impact.

However, the analysis by itself is insufficient to convey the full impact of any organization. Hence, it will be useful to triangulate the results by looking at additional evaluation metrics and qualitative data to adequately capture the full benefits of Awamaki.

Pg. 27

Limitations and Recommendations Given that this analysis is limited by the availability of data already collected by Awamaki, it is very likely that the ratio will be higher taking into account the remaining non-monetized benefits.

Take for example, this analysis only included the increase in wealth of the Songuilay cooperative (Outcome 13). Hence Awamaki’s returns would be higher if the value of the remaining five cooperatives’ assets acquisition in 2015 were included. The analysis also did not take into account additional intangible benefits such as better nutrition for the families, better education for children, increased confidence by the women or even increased social status of participating households as a result of reduced poverty. Notably, the valuation of these intangible benefits is difficult to pin down, however it is worthwhile for future researchers to design relevant data collection tools and quantify such benefits as they contribute significantly to Awamaki’s impact on the communities.

Based on the results and conclusions presented above, the following are recommendations on how the SROI results can be utilized as well as future research possibilities.

1. The former 2009 SROI analysis found that for every dollar invested in Awamaki in 2009, the social and economic return on investment is $1.79 (A. Toccket, personal communication, June 22, 2016). It is interesting to note how the SROI value has changed over time. Most notably, the costs of operating Awamaki has increased more than 10-fold. This is a significant factor that may have affected the organization’s SROI value in this round of analysis. It might be strategic for Awamaki to analyze the breakdown of its expenses and attribute the expenses to the benefits of running each of the specific program. This will allow Awamaki to better understand the efficiency level behind the running of each of its programs and what can be changed to maximize each program’s social value.

2. A future research possibility is to conduct a forecast SROI analysis. As the organization continues to grow and expand its work to different communities in the Sacred Valley, Awamaki’s social impact is expected to increase. Given there are existing projects currently underway that are unaccounted for in this analysis (i.e. construction of weaving centers in the different communities), the forecast SROI will be beneficial for the organization to extrapolate and understand the potential benefits of its current activities in the longer term.

3. It will also be useful to set out a clear timeline and resources needed to implement the next evaluative SROI analysis. This ensures that a system of continuity is put in place to monitor the scale of improvements that are being made.

Although the SROI ratio is a relatively easy communicative tool for external stakeholders, it is more useful internally for the organization as an evaluative tool to analyze the social values generated from each program and the decisions behind the program. In addition, the changes in SROI ratios over time will help guide Awamaki in their decision-making as well as better understand its impact on the communities. It is recommended that the next evaluative SROI analysis be conducted five years later in 2020 and the analysis should include all the data collected during that fiveyear time-frame. It is beneficial to include data from a cumulative time-frame as opposed to data taken from a snap-shot in time. This is because changes are not static and this will take into account the accumulated benefits to the community over time.

Pg. 28

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