This study uses social impact return on investment (SROI) to determine the overall economic impact of a statewide network of community mediation centers in Hawaii during the 2016 fiscal year. The SROI analyzes the economic impact of the centers’ services on two factors: the short-term (within a one year period) direct economic impact based on the fair market value of services delivered along with any immediate cash awards or amounts avoided as a result of the mediation centers’ services, and the longer term economic impacts in the areas of community health costs, social support costs, law enforcement costs, taxation revenues, property valuation effects, and other community cost changes. The analysis found that for every $1 spent to provide services, the community receives $8.76 in immediate and long-term financial benefits.
Description of Study: Analysis of the economic impact of services provided by a Hawaii statewide community mediation center during its 2016 fiscal year. The analysis included a determination of the money saved to the community by reducing problems that would require other public services to be engaged as well as additional income of those citizens who received services.
Method: Analyzed the economic impact of the centers’ services on two factors: the short-term (within a one year period) direct economic impact based on the fair market value of services delivered along with any immediate cash awards or amounts avoided as a result of the mediation centers’ services, and the longer term economic impacts in the areas of community health costs, social support costs, law enforcement costs, taxation revenues, property valuation effects, and other community cost changes. In the analysis, these positive impacts were offset by net negative valuations, such as other factors that could contribute to a positive long-term outcome and the probability that the outcome would have otherwise happened without the centers’ services.
Comparative: No
Variables Examined: Cost
Program Variables: The centers mediated 1,173 cases during the 2016 fiscal year. These mediations included 406 family cases, 260 housing cases, 272 consumer issues and 35 community issues.
Findings: The study found that the total social return on investment was 876% of the financial cost of the centers to the state of Hawaii. In other words, for every $1 spent to provide services, the community receives $8.76 in immediate and long-term financial benefits. This finding is based on comparing the centers’ cost of $850,095 and a total net value of the centers’ services of $7,444,000. The net value includes a direct financial impact of $812,000 and a net long-term financial impact of $6,632,000.