Article in International Encyclopedia of Civil Society published

Social Return on Investment (SROI) is an analytical framework for measuring the social, economic, and environmental value generated by nonprofit organizations (NPOs), businesses, projects, and other types of intervention. It explicitly considers primary and secondary stakeholders, often relying on social science methods for quantification. By converting non-financial impacts into monetary terms, SROI offers a more comprehensive view of value for money than conventional financial and economic metrics, making it particularly useful for nonprofit organizations, social enterprises, and public sector initiatives. The total monetized impact is then compared to the resources invested and expressed as a ratio, e.g., $5 of value generated for every $1 invested.

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