About Social Ventures Australia Social Ventures Australia (SVA) works with innovative partners to invest in social change. We help to create better outcomes for disadvantaged Australians by bringing the best of business to the sector, and by working with partners to strategically invest capital and expertise. SVA Impact Investing introduces new capital and innovative financial models to help solve entrenched problems. SVA Consulting partners with non-profits, philanthropists, corporations and governments to strengthen their capabilities and capacity to address pressing social problems. List of Abbreviations BHA Bush Heritage Australia CDEP Community Development Employment Projects CDNTS Central Desert Native Title Services CSR Canning Route DPaW Department of Parks and Wildlife (WA) DoE Department of the Environment (Commonwealth) IAS Indigenous Advancement Strategy ILC Indigenous Land Corporation IPA Indigenous Protected Area IUCN International for Conservation of Nature MKK Matuwa Kurrara Kurrara MNR Mungarlu Ngurrarankatja Rirraunkatja (Aboriginal Corporation) NGO Non-Government Organisation NRS National Reserve System PBC Prescribed Body Corporate PM&C Department of the Prime Minister & Cabinet SROI Social Return on Investment SVA Social Ventures Australia TEK Traditional Ecological Knowledge TMP Tarlka Matuwa Piarku (Aboriginal Corporation) WA Western Australia WoC Working on Country purpose
Figure 4.1a –Theory of change for the Birriliburu and MKK IPA projects – Issues, Stakeholders, Activities and Inputs (Investment) Figure 4.1b –Theory of change for the Birriliburu and MKK IPA projects – Community member and Ranger outcomes Figure 4.1c –Theory of change for the Birriliburu and MKK IPA projects – Government outcomes Figure 4.1d –Theory of change for the Birriliburu and MKK IPA projects – Indigenous corporation, NGO partner, Corporate partner and Research partner outcomes
3.2 Reduction in income support payments Average income support savings (per person per year) $228.28 Direct savings to Government as a consequence of permanent Rangers earning over the threshold for receipt of Newstart and other allowances 3.3 Increase in income tax Average increase in tax revenue (per person per year) $5.76 Increased revenue for Government as a result of increased taxable income 3.4 Effective governance of Indigenous corporations Value of governance program $9,065.00 The improved governance is similar to that which might be achieved through undergoing a governance education program 3.6 Improved engagement with communities Annual salary of a Community Relations Coordinator for this IPA (and others) $36,083.00 Government stakeholders observed that they are more welcome at, and are able to better engage with, communities through the IPA. No were included. 3.7 Partnership model promoted Annual salary of a Strategic Partnerships Manager for this IPA (and others) $49,255.50 The IPA programs have been promoted internally and externally in recognition of their success. No on-costs were included. 3.8 Greater respect for TEK Average annual cost of Environmental Scientist salary $68,625.00 An alternative for achieving a similar depth of connections and relationships is hiring an environmental scientist. No on-costs were included. 3.9 Low cost land management Difference in cost between land management on IPAs and national parks $18.20 Direct savings to Government as a consequence of voluntary commitment of IPA land Table 4.11 – Financial proxies used in the SROI analysis A detailed description of the valuation of each of the outcomes, including the calculations and the source of the financial proxy, is included in the Methodological Attachment to this report. SROI (Valuation) filters To present an accurate view of the unique value created through the Birriliburu and MKK IPAs, SROI filters are applied to the financial proxies. This is in accordance with the Social Value principle of not
Filter Assumption Rationale Deadweight 25% 25% deadweight has been accounted for in the calculations. It is likely that the Rangers would be able to obtain skills or training without the IPA programme or subsequent opportunities that have been catalysed by the IPA programme but only to a limited extent. Attribution 0% No attribution has been accounted for in the calculations. No other programs, initiatives or organisations contribute to achievement of this outcome in a material way. Duration 1 This outcome for the period of the investment (five years). The duration is expressed as ‘1’, to reflect the direct relationship with the period of investment. Drop-off 0% No drop-off is applicable as the outcome is assumed to last for the period of the investment only. 4.12 – SROI filters for Outcome 3.1 ‘Rangers are skilled and trained’ 4.5 Calculating the SROI Once the SROI filters have been applied to each outcome (where applicable), the outcome’s total adjusted value can be determined. Valuing the outcomes created by the Birriliburu and MKK IPAs The total adjusted value is the value created for each outcome, which takes into account the following components: Quantity Financial proxy SROI filters: deadweight; attribution; displacement; duration and drop-off. The application of the SROI filters results in an adjusted value for each financial proxy identified for the analysis. This adjusted value represents the value of the outcome that can be solely attributed to the investment described in this analysis. A worked example of the adjusted value for the Government outcome 3.1 ‘Rangers are skilled and trained’ is set out in Figure 4.1 below.
Figure 4.1 – Worked example for adjusted value of Outcome 3.1 Table 4.13 is a summary of the total adjusted value for all of the outcomes experienced by each stakeholder group. Outcome Adjusted $ value for outcome Value per stakeholder Rangers 1.1 Increased skills through training and experience $181,204 $752,979 (9%) 1.2 Increased confidence $31,350 1.3 Better health and wellbeing $25,785 1.4 Increased pride and sense of self $142,220 1.5 Better caring for country $372,420 Community members 2.1 More role models for young people $22,500 2.4 IPA leveraged for additional funding and economic opportunities $2,008,162 2.5 Increased respect for women $93,860 2.6 Increased respect from non-Indigenous community $5,400 2.7 Better cultural asset management $151,200
2.8 Connection to country strengthened $137,800 2.9 Culture and language conserved $561,851 2.10 More burning using cultural practices $225,000 2.12 Less ferals $10,697 Government 3.1 Rangers are skilled and trained $594,000 $3,545,443 (40%) 3.4 Effective governance of Indigenous corporations $27,195 3.6 Improved engagement with communities $90,208 3.7 Partnership model promoted $184,708 3.8 Greater respect for TEK $193,008 3.9 Low cost land management $2,456,325 Indigenous corporations 4.1 Improved governance capacity $18,130 $168,130 (2%) 4.2 Successful engagement in economic opportunities $150,000 NGO partners 5.1 Deeper connections and relationships $57,164 $268,081 (3%) 5.2 Better meet core biodiversity objectives $210,917 Corporate partners 6.1 Deeper connections and relationships $152,438 $452,438 (5%) 6.2 Increased local and international credibility $300,000 Research partners 7.1 Deeper connections and relationships $114,328 $394,962 (5%) 7.2 Better meet core research objectives $280,634 Table 4.13 – Total adjusted value of outcomes
Testing assumptions A series of sensitivity analyses was completed to identify the impact of changes to key assumptions. The outcomes for the sensitivity analyses completed for this SROI are included in Table 4.14 below. These show that the return on investment is very sensitive to key assumptions. Outcome Variable Baseline judgement Low case High case 1.3 Better health and wellbeing Financial proxy: Average cost of engaging in activities $3,438 50% of baseline $7,995 Note: Average health expenditure per Aboriginal and Torres Strait Islander person in 2010-2011. Source: AIHW, Expenditure on health for Aboriginal and Torres Strait Islander people 2010-11 (2013). Available at: (accessed 5 Dec 2015) 2.4 IPA leveraged for additional funding and economic opportunities Attribution 0% 0% 25% 2.7 Better cultural asset management Financial proxy assumption: Breakdown between diffuse and targeted 90% diffuse and 10% targeted management 95% diffuse and 5% targeted management 85% diffuse and 15% targeted management 2.10 More burning using cultural practices Financial proxy: Cost of hiring a contractor to carry out a burn (per day) $6,000 * remoteness multiplier appropriate 50% of baseline 150% of baseline 2.12 Less ferals Financial proxy: Cost per hectare of feral animal control $0.24 50% of baseline 150% of baseline 3.9 Low cost land management Financial Difference in cost between land $18.20 $6.17 Note: WA and lowest state estimate in Gilligan $49.38 Note: VIC/NSW and highest estimate in Gilligan (2006) evaluation. Adjusted for inflation.