Understanding Impact Returns

How RaiseReady Impact quantifies social and environmental value in US$ equivalents

The Problem We're Solving

Impact investors face an impossible comparison

Traditional Approach

"I have two opportunities:"

  • 🏢 Project A: 12% financial return, zero impact
  • 🌍 Project B: 6% financial return, improves 10,000 lives

Which is better? There's no objective way to compare.

RaiseReady Impact Approach

"Let me quantify both returns:"

  • 🏢 Project A: 12% total return
  • 🌍 Project B: 6% financial + 8% impact = 14% total return

Now we can compare apples to apples.

Video: "Why Impact Investing Needs Better Metrics"

(2 minutes)

The RealChange Impact SDG Valuation Framework

A transparent methodology for valuing social and environmental impact

The Core Formula

Total Return = Financial Return + Impact Return
(Both measured in % or US$ equivalent)
Financial Return
6%
Cash IRR
Impact Return
5%
USD equivalent
Total Return
11%
Blended

Apples to Apples

Compare impact opportunities using the same metrics as traditional investments

Articulate Value

Founders can demonstrate true value creation beyond just financial returns

Better Decisions

Investors make informed choices aligned with both financial and impact goals

Framework Attribution: The RealChange Impact SDG Valuation Index was developed by Dennis McMahon and has been refined over 9 years of real-world impact project development. This proprietary methodology provides transparent, measurable valuations for all 17 UN Sustainable Development Goals.

Video: "The Framework Explained"

(4 minutes)

How Each SDG Is Valued

Transparent valuations for all 17 Sustainable Development Goals

Real Example: Ghana Accra 001

Waste-to-Energy + Affordable Housing Project

The Project Structure

Investment

  • 💰 Total Bond: $100M
  • 🏘️ Impact Portion: $25M (1,000 homes)
  • ⚡ Profit Portion: $75M (waste-to-energy plant)
  • 📅 Term: 5 years

Financial Returns

  • 💵 Waste plant revenue: Clean energy sales to grid
  • 📊 Projected IRR: 6% annually
  • 💸 Total revenue: $37.5M over 5 years
  • ✅ Status: Gov't offtake agreement secured

Impact Returns Calculation

SDGMetricUnitsValue/UnitTotal Value
SDG 1Property tenure1,000$500$500,000
SDG 4Children in school3,000$2,000$6,000,000
SDG 6Water access (5,000 people)100%$100,000$10,000,000
SDG 7Clean energy access100%$50,000$2,500,000
SDG 11Adequate housing100%$250,000$12,500,000
Other SDGs (3, 5, 8, 10, etc.)$10,690,000
TOTAL IMPACT VALUE$42,190,000

The Blended Return Calculation

Financial Returns
Investment: $100M
Revenue: $37.5M
Return: $37.5M / $100M = 37.5% over 5 years
Annual: 6.0%
Impact Returns
Impact Investment: $25M
Impact Value Created: $42.19M
Return: $42.19M / $25M = 168.76% over 5 years
Annual: 33.75%
TOTAL BLENDED RETURN
39.75% Annual
6% Financial + 33.75% Impact Equivalent

Try It Yourself

Adjust the variables and see how returns change in real-time

Video: "Walking Through a Real Project"

(6 minutes)

How RaiseReady Impact Uses This Framework

For Investors

  • 1.Define your target blended return (financial + impact)
  • 2.Set minimum thresholds for each component
  • 3.See matches: "This project delivers 6% financial + 8% impact = 14% total"
  • 4.Filter by: "Show projects with >12% blended return"

For Founders

  • 1.Input your SDG impact projections
  • 2.See how your impact translates to value
  • 3.AI coach suggests: "Adding water access could increase impact return by 5%"
  • 4.Match with investors who value YOUR impact areas

Transparency & Flexibility

  • ✓ All calculations shown to both parties
  • ✓ Founders can challenge/adjust SDG metrics with justification
  • ✓ Investors can input custom SDG values if they prefer different valuations
  • ✓ Everything is transparent and auditable

Ready to Calculate Your Impact Returns?

Use our interactive calculator to test scenarios and understand your potential returns

Frequently Asked Questions

Ready to Get Started?

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