Return on Investment and Budget Development for Reutilization Programs

1. Return on Investment and Budget Development for Reutilization Programs Joy Kniskern, Georgia Dept. of Labor/Tools for Life and Sara Sack, Assistive Technology for Kansans

2. Pass It On Center - AT Reuse Strand

3. Pass It On Center - AT Reuse Strand

4. Pass It On Center - AT Reuse Strand

5. Pass It On Center - AT Reuse Strand

6. Source: www.cartoonstock.com

7. Similar Discussion at ATIA in Chicago—But Even More Important Now….Why? • Always important to run an efficient, effective operation • More likely to be asked to demonstrate your program’s effectiveness • Sept. 14, 2010 Sunshine Review report—Budgets for FY2011 are even more difficult than 2010 • Yolanda Kodrzycki, an economist at the Federal Reserve Bank of Boston, told the National Governors Association meeting in July 2010 that budgeting for next year would be "just as tough" for state budget makers.

8. Cost Benefit, Simple ROI, ROI/Business Case: What Are We Talking About? • Similar but slightly different terms • Cost Benefits – a general list. • ROI – performance measure to compare efficiency of different investments. • ROI/Business Case – stated definitions and assumptions and yields some insights on how to improve business in the future.

9. Simple ROI Calculation • ROI = (Gains from investment – Cost of investments) divided by Cost of investment • Which is a better investment? • $1,000 that earns $50 • $100 that earns $20

10. Simple ROI Calculation • $1,000 that earns $50 • ($1050 - $1,000)/ $1000 = .05 or 5% ROI • $100 that earns $20 • ($120 - $100)/$100 = .20 or 20% ROI

11. Before You Start Your Calculations • 1. List your costs • 2. List your benefits • 3. State your definitions and focus • 4. Think about what a “good” return would be…. • Kansas legislator when talking about another program was pleased with a $2 return • State your goal for a return

12. Kansas Reuse Program ROI

13. Simple ROI: Regional Data (3rd Q)

14. Simple ROI: Regional Data (4th Q)

15. Comparison of Quarterly ROI

16. Collection Drive ROI

17. Collection Drive Adjusted ROI

18. Collection Drive Complex ROI • Assumptions/Benefits • Accept only lightly used, high cost or bariatric DME. • Increased DME provider and network partner involvement. • Increased public’s awareness of program resulting in increased donations and requests.

19. Collection Drive Complex ROI

20. Practice Calculating Simple ROI • ROI = (Gains from investment – Cost of investments) divided by Cost of investment

21. ROI is a Useful Tool for: • ROI is a useful tool for making program decisions. • Consider conducting ROI for: • pickup and delivery, • shipping, • collection drives, • methods of cleaning and sanitization (volunteers, paid staff, contractor, purchase of sanitizing equipment)

22. Church Collection Drive

23. STAR Network Items: 3 yr Grant Period Year 2009-2010 Total thru 6/31/10

24. Recommendations for Future Work in ROI • Consider factoring in costs savings/benefits of: • Prevention of injuries from falls • Reduction in number of emergency room visits • Increased independence/less personal assistance • Reduction of work absence by having back-up/secondary equipment • Value of increased time producing homework with refurbished laptop • Calculation to determine value of waste kept out of landfills or value of repurposed scrapped materials.

25. Questions? • Joy Kniskern, 404-638-0387 or joy.kniskern@dol.state.ga.us • Sara Sack, 620-421-8367 or ssack@ku.edu

26. Thank You! Thank you for attending this session. Watch for us in Chicago this November! Please help us improve the quality of our conference by completing your session evaluation form. Completed evaluation forms should be submitted as you exit or to staff at the registration desk.