Social Return on Investment (SROI)

Quantifying Social Value Beyond Financial Returns

Social Return on Investment (SROI) is a methodology that allows organizations to measure and account for the social value created by their initiatives. Unlike traditional financial ROI, SROI considers non-financial outcomes—such as improved community health, environmental sustainability, and social empowerment—and places a financial value on them to demonstrate broader impact.

• Value quantification — Expressing social, environmental, and economic outcomes in monetary terms
• Stakeholder-driven assessment — Integrating beneficiary perspectives throughout the evaluation process
• Comprehensive impact measurement — Capturing both tangible and intangible benefits across multiple domains
• Comparative analysis — Calculating return ratios (e.g., 1:4 means $4 of social value for every $1 invested)
• Evidence-based decision making — Supporting resource allocation with clear demonstration of impact
• Cross-sector application — Effective for community development, environmental programs, health initiatives, and education
• Strategic alignment — Connecting business objectives with societal needs and benefits
• Communication power — Translating complex social impacts into universally understood financial language

By converting seemingly intangible benefits into financial metrics, SROI creates a holistic picture of program effectiveness beyond traditional accounting measures. This approach empowers organizations to make data-driven decisions, demonstrate value to funders and stakeholders, and optimize their investments for maximum social impact.