Impact Measurement FrameworkSocial Return on Investment (SROI)

Author(s): Roberts Enterprise Development Fund

Target Market: Community service organisations

Overview: The SROI framework is used to measure and monitor the social, economic and environmental outcomes generated by a program or an organisation. It assigns monetary values to social impact generated.

Data Collection / Measurement Method:

  • Establish scope of operations
  • Identify key stakeholders that operations impact
  • Map outcomes
  • Develop key metrics and indicators to measure the outcomes
  • Assign a financial proxy to each metric/indicator
  • Calculate the SROI based on key financial assumptions that have been developed through accounting principles

Key Points:

  • The SROI framework produces an SROI score that can be used by organisations to make internal comparisons of their progress over time. This score, however, is highly specific to an individual organisation and should not be used to compare different organisations
  • A suite of consistent metrics and indicators can be used repeatedly each year to enable a trend analysis
  • Organisations should already be measuring their outcomes before embarking on an SROI analysis; some level of expertise and training is required
  • Subjective in  nature, particularly during the stage of assigning a financial proxy to outcome indicators