SROI “Education builds the future.” Building the BufKids Cen

Social Return on Investment (SROI) CASE STUDY “Education builds the future.” Building the BufKids Center and Cafeteria Building a community center and canteen for children in vulnerable communities fosters a nurturing environment that supports their education, promotes social cohesion, and strengthens the foundation of our national society.

2 “Education builds the future” Building the BufKids Center and Cafeteria| SROI Demonstrating the Outcomes Theory of Change Based on the current SROI study, a theory of change was formulated to captures the significant outcomes experienced by the direct beneficiaries. Funding the construction of BufKids Center Funding the construction of BufKids Cafeteria Involving family members and members of local community for BufKids Center and Cafeteria activities Providing one hot nutritious meal a day for 50 children/year Carrying out after-school and pre-school activities for 50 children/year, including non-formal education activities, extracurricular activities and psychological support Avoiding situations of school dropout and absenteeism Better academic performance for children Improved social skills for children Improved overall mental health for children Improved nutrition for children, including the development of healthier eating habits Better communication between children and family members involved in BufKids activities Improved community collaboration Development of educational and social infrastructure for the Buftea community Improved school performance Improved life quality for children Improved family dynamics Community developemnt Input Activities enabled Outputs Outcomes

Summary Buftea is a town situated 20 km northwest of Bucharest, the capital of Romania. It has two notably impoverished neighborhoods, Buciumeni and Flămânzeni, which are described as “extreme poverty pockets” and are predominantly inhabited by members of the Roma ethnic group who experience social exclusion and community segregation. The children from these vulnerable communities attend schools where the quality of education is often low. In this context, the BufKids Community Center and Cafeteria were developed, as a result of a complex collaboration: • Municipality of Buftea, which provided the land on which the establishments were built • Hercules Association, which manages the BufKids Community Center and Cafeteria • Habitat for Humanity Romania, which coordinated the building process • Corporate sponsors that funded the building process, of which PENNY Romania is a strategic partner The BufKids establishments facilitate 50 vulnerable children per year, aged 6-14, who are at risk of dropping out of school due to the social and economic challenges faced by their families. The main goals of this complex initiative are: • Preventing school dropout and developing the ability to learn among children from families with serious socio-financial problems: after school, reading or IT clubs, informal education activities • Raising the educational level and developing the social skills of children – through non-formal education activities, extracurricular activities, all carried out in a warm and friendly environment. • Increasing the quality of children’s lives: material aid consisting of providing children with books, supplies, clothing, daily hot meals, access to medical services, psychological assistance) • Developing parenting skills among parents • Community involvement in children’s education with the help of volunteers (including teachers) and by developing partnerships • Quality Control of nutrition – direct oversight ensures nutritious, high-quality meals, promoting healthier habits among children • Cost Efficiency – transitioning to an in-house cafeteria model reduces food provision expenses, allowing the Hercules Association to reallocate funds for other projects The complex project commenced in 2018 by building the Bufkids Educational Center, which was inaugurated in 2020, but due to Covid-19 restrictions the educational activities were carried out remotely during the social restrictions. In January 2022, work began on the second building, which will consist of a kitchen and cafeteria, which was inaugurated in 2024. Timeline: 2020 inauguration of Educational Center (remote activities) 2024 inauguration of Cafeteria 2018 building of Educational Center starts 2022 building of Cafeteria starts As part of the project, 63 PENNY volunteers helped in 2023 with the construction works for the Canteen, during 2 volunteer events. Thus, in August, 33 Penny volunteers helped on the site at plasterboard cladding, grouting and reinforcement workshops for the structure of the connecting body. In September, 30 volunteers helped on the construction site to apply decorative plaster and continue the workshops inside. Apart from these activities, PENNY Romania has also supported the BufKids project by organizing gifts collection activities for the children.

2 “Education builds the future” Building the BufKids Center and Cafeteria| SROI Methodology Social Return on Investment (SROI) is a methodology designed to assess the overall value created by an organization's activities for all its stakeholders. It is based on established principles of economics, accounting, and social research. The SROI analysis seeks to quantify and value the significant changes experienced by all stakeholders impacted by the organization's activities. To achieve this, extensive data collection is required from each stakeholder group that may be positively or negatively affected. This data helps to understand, measure, and value the outcomes experienced by stakeholders, demonstrating whether a material change has occurred as a result of the organization or program activities under evaluation. The children who benefited from the BufKids Center and Cafeteria are the primary stakeholder group for the services included in this SROI analysis. The SROI evaluation of the BufKids Center and Cafeteria project was conducted in accordance with social value principles. The approach taken for this SROI calculation is evaluative and is based on outcomes (actual and expected) that occur as a result of the services provided by the center. The SROI analysis followed the seven principles of SROI and included the following steps: 1 Agree on the scope 2 Develop a stakeholder map 3 Recruitment of participants for research 7 Input data to value map to calculate the SROI ratio 8 Develop conclusions and recommendations 4 Conduct interviews and focus groups to identify outcomes and develop Theories of Changes 5 Conduct quantitative research to gather further data on outcomes and quantify stakeholders’ experiences hange 6 Analyze data and conduct supporting research review to clarify assumptions Figure 1– Phases of SROI project development Stakeholder mapping Stakeholders identified during project analysis, research and interviews for the BufKids Center and Cafeteria Other project partners Habitat for Humanity Romania Local Authorities Children from the Buftea Community Families of the children / local community PENNY Romania (including volunteers)

Results of SROI analysis Social benefits For each 1 Euro contributed by PENNY Romania towards the building of the BufKids Center and Cafeteria, it resulted in € 10.13 of social and economic value within the community. To determine the Social Return on Investment (SROI) ratio, a comparison was made between the investments (inputs) and the combined financial, social, and environmental returns (outcomes and impact). This dynamic calculation method involved assessing the total adjusted value of the results, taking into account factors such as deadweight, attribution, and inflation adjustment. By dividing this adjusted value by the total value of inputs, a comprehensive SROI ratio was obtained, providing an accurate measure of the intervention’s true impact. € 7,309,752 Funding period Total Present Value (TVP) € 6,588,114 Net Present Value (NPV) € 10.13 SROI Ratio (TVP/Input) Testimonials from the beneficiaries My friends from the Centre and I were watching the construction site in the centre yard every day. We enjoyed watching our future canteen grow! It is so big and beautiful, and I like that we can pass from the centre directly to the canteen!” Alex, 12 year-old beneficiary boy from Buftea A lot of people came to help build our cafeteria! I can’t wait for us to eat in the new building together. We are already talking to each other about how we will eat and cook together, and I promised Mrs. Petruta that we will also help set the table and keep the dining area clean and tidy. We like to take care of our centre because it is beautiful and colorful and brings us joy. I have more friends here than at school and I like the teachers better because they are all nice to us. When I grow up, I want to help people too, just like the volunteers are doing now and like Mrs. Petruta and Flori, Tantica are helping us now. Helping others seem to me to be the best job in the world.” Adelina, 9 year-old beneficiary girl from Buftea Total Investment In order to support the vulnerable children from the Buftea community, a total of € 721,638 (RON 3,589,783) was funded by corporate sponsors for the building of the BufKids Center and Cafeteria, out of which: Educational center: € 345,035 Cafeteria: € 376,603 PENNY Romania, as a strategic partner, has funded 35% of the total sum for each of the buildings, representing a total of € 250,000. € 250,000 This funding allocation demonstrates a balanced sharing of financial responsibilities between the investing partners. Beyond the direct financial contribution, PENNY Romania also allocated support in the form of volunteers working hours and gift collection initiatives, reinforcing their dedication to improving the lives of the target beneficiaries. The combined efforts of project partners demonstrate their steadfast dedication to enhancing the quality of life for these at-risk communities.

Conclusion the project brought together partners that share the vision that education is the first step towards a better future and that the community center will serve as a second home for participating children. This is especially crucial for children facing difficult home situations, providing them with a welcoming educational environment, a daily meal, and additional services. Many parents lack the ability and resources to support their children's homework and other needs, such as counseling. This project represents the community's only opportunity for their children to receive a better education and benefit from healthy nutrition and a supportive environment. The amount of social value generated by the project outweighed the cost of inputs, as the SROI ratio itself seems to indicate clearly that to invest in the education and wellbeing of children in vulnerable communities is a good investment. Methods like cost-benefit analysis and SROI analysis assign a monetary value to out-comes for various stakeholder groups, enabling reporting in a common metric Euro (€). The present study results were based on a straightforward ratio of value generated relative to inputs makes them easily understandable to a wide audience. Shaping the future: Perspectives for our SROI Project The project of Building the BufKids Center and Cafeteria under the slogan “Education builds the future” delivers notable social and economic benefits to the communities it serves. To maintain and enhance this success, the following recommendations and future perspectives are considered: • Broaden Coverage: With the demonstrated SROI ratio and clear benefits, expanding the project's reach to more communities with similar needs is essential. • Enhance Partnerships: Strengthening relationships with key stakeholders is crucial. These partnerships will allow for shared resources, expertise, and a greater overall impact. • Encourage Innovation: It is important to seek out and implement new and innovative methods for providing education and support for children in vulnerable communities. • Implement Monitoring and Evaluation: A strong system for monitoring and evaluating progress must be established. This will help in tracking outcomes, measuring success, and continually improving the approach to maximize SROI and ensure long-term sustainability. • Increase Awareness: Developing focused communication and advocacy campaigns is vital for raising public awareness and engagement. These campaigns will help attract additional resources and partners to support the initiative's growth. By following these recommendations, the project is poised to continue making a significant impact on the lives of children from the Buftea vulnerable communities. We deeply appreciate the ongoing support and dedication to this critical cause. Together, we can strive towards a brighter future for all. SROI Total Present Value Total Inputs SCANN ME Habitat for Humanity SCANN ME PENNY România

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