What Is SROI
Social return on investment (SROI) is an accounting framework for non-profit organizations that measures the social impact of a given project. Put simply, it measures the money your project or program costs to operate and then subtracts from this the cash benefits to participants that result from your intervention. And then it compares this difference to the financing it receives. This means non-profits don’t just have to measure success in terms of what they’re achieving but in terms of whether these results can be achieved more efficiently with another method. In other words, non-profits must not only understand how much good they are doing but also if it’s possible to do even better by switching their strategy altogether.