Know Your Worth: Leveraging SROI
Your organization is complex. You bring value to your constituents in many ways that don’t appear in a traditional cost/benefit analysis. Your stakeholders should know the true impact you make. How can you demonstrate this unique value? By identifying your SROI (Social Return on Investment). What is SROI, and how can you leverage it to support your organization?
Defining Social Return on Investment
What is SROI? SROI is a tool utilized by philanthropists, foundations, grant organizations, non-profits, and humanitarian bodies to quantify their social impact in financial terms.
By ascribing a monetary value to social impact, an organization can better communicate its value to investors. It shows where your money is going, and how much value each dollar brings. Your SROI is calculated based on three metrics:
1. Inputs: investments into the project (e.g. cost of employees working on a new
healthcare accessibility campaign for constituents)
2. Outputs: outcomes of the project (e.g. number of constituents who signed up for
healthcare as a result of this campaign)
3. Outcomes/Impact: changes resulting from this project (e.g. improved health of
constituents, their greater ability to participate in community events, greater public image
for the organization)
From this data, Social Impact Solutions can calculate a financial value for the social return on your investment into a project using industry-wide standards, such as the Social Impact Calculator. Your SROI will then be incorporated into a broader Social Impact Report. Want to learn your SROI? Schedule a consultation today.
Leveraging SROI to Add Value
How can your SROI be leveraged to add value? By partnering with Social Impact Solutions to develop a Social Impact Report, you can…
1. Demonstrate your true value to stakeholders
You know that your organization makes an impact. Demonstrate exactly how you
make an impact on your stakeholders in the language they understand.
Stakeholders who can identify the social, environmental, and economic impact of
your work is more likely to donate their time, money, and energy to your cause.
2. Grow in the right direction
Your social impact report will identify how your hard-earned funds are being spent. This calculation of the social impact of your investment is invaluable when identifying areas of profit – and spaces for improvement. Know where your dollars
are best directed with a Social Impact Report today.
3. Celebrate your team
Your team works so hard to bring value to your constituents. Celebrate their achievements with a Social Impact Report. This report will detail exactly what value they brought to your constituents, and how they did it. When your team knows their SROI, they know how important they are to your mission. Schedule a
consultation to learn more today.