A ‘financial proxy’ is a means of putting a financial value on a non-financial outcome. For instance, what is the financial value of an individual finding work and coming off benefits, or what is the ‘value’ of increased ‘wellbeing’?
Financial Proxies are useful as they allow you to sum in a single unit all the on-financial benefits arising from an activity or intervention.
We use them as a part of our Accounting for Social Value Methodology to prepare a 3D Profit and Loss Account.
However, it is widely recognised that this form of accounting for social value has its drawbacks and does not necessarily recognise the context of true value of an intervention to an individual. See ‘Context is Everything’
We provide a form filling and tender analysis service if you require further support in this area – see ‘Consulting Services’