Understanding SROI
Social Return on Investment (SROI) is a systematic way of incorporating social, environmental, economic and other values into the decision-making processes. By helping to reveal the economic value of social and environmental outcomes, SROI creates a holistic perspective on whether a development project / social business / enterprise is beneficial and profitable.
In simple terms it shows how much good is created for every dollar spent.
SROI helps funders, nonprofits and businesses measure and monitor the real impact of their work - not just in the money spent, but through the positive change that is being made.