Social Return on Investment

Social Return on Investment explained

Show the social and economic value of your intervention with Social Return on Investment

Social Return on Investment (SROI) is a comprehensive framework for measuring and documenting the social and economic value of social interventions.

Social value pertains to the value that the intervention creates for the participants’ overall life satisfaction. This means that we measure how e.g. reduced loneliness or anxiety helps to improve life satisfaction.

Economic value pertains to the budgetary value that the intervention creates for public and private stakeholders. This could for example be reduced costs for municipalities and state, when citizens go from unemployed to employment or education, or reduced expenditure on psychiatric help, when participants' well-being is improved or their depression is reduced.

This approach translates outcome data into monetary values, providing a clear picture of the value created for the participants and different stakeholders, such as municipalities, regions, and the state.

A rigorous method

SROI involves a thorough process of identifying both direct and indirect stakeholders, and determining potential economic benefits to the respective stakeholders.

Afterwards, a Theory of Change is formulated to ensure a clear vision for the desired impact, which is later condensed into a measurable data strategy aimed at ensuring reliable data collection.

Organisations then start measuring the outcomes of their intervention, implement benchmark data to mitigate the risk of overstating outcomes, establish the monetary values based on the outcomes, and lastly calculate the overall return on investment.

Why use SROI?

By converting outcome data into economic terms, the SROI report enables organisations to demonstrate the social and economic value of their intervention to relevant stakeholders. But it also provides in-depth insights for organisations on how much each stakeholder benefits economically, which enables them to better target key stakeholders in order to anchor their intervention or in other ways ensure a sustainable business model.

Overall, the SROI method helps organisations make informed decisions, optimise their interventions, secure funding, while enhancing transparency and accountability.

Read about Impactly's SROI Calculator

How to use the SROI method

Social Return on Investment offers a rigorous method for demonstrating the social and economic value of intervention

Explore the steps and benefits of utilising the SROI-framework to capture and document the social impact and value of your intervention.

Benefits of the SROI method

An SROI-analysis enables a organisations to tangibly show both the social and economic value of their interventions, while providing organisations with key insights on who their benefitters are, thereby making it easier to anchor or scale succesful interventions.

Offers a systematic and recognised method for social impact evaluation and reporting

Enables continuous learning and optimisation

Helps clearly convey the social impact and value

Appeals to impact investors, foundations and municipalities

Increases possibilities of establishing longterm partnerships

Improves chances of becoming financially sustainable

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Sucess stories

We empower our clients to demonstrate and maximise their social impact

Mind Your Own Business

With Impactly, we have optimized our possibilities of showing and documenting the impact, we create for and together with the boys, because we are now able to monitor the boys' individual development in real-time

Maria Kavita Nielsen

Founder and Director

Recovery Bulls

The fact that Impactly helps us measure the effects of our work is a huge help in order for us to prove our effect to collaborators, politicians and benficiaries, so we can continue to help people.

Even Ramsland

Founder and Director

Would you like to learn more?

Book a meeting with Johan

If you'd like to learn more about Impactly and how we can assist you in evaluating your social initiatives, you can book an introductory meeting with our CEO

Book today

Report social and economic value with the Social Return on Investment method

Show the social and economic value of your intervention with Social Return on Investment

Social Return on Investment offers a rigorous method for demonstrating the social and economic value of intervention

We empower our clients to demonstrate and maximise their social impact

Book a meeting with Johan