What is SROI calculation and how is it done?

What is SROI calculation and how is it done?

SROI stands for Social Return on Investment. It's a framework for measuring and accounting for the value created by social, environmental, and economic outcomes. To calculate SROI, you typically follow these steps: 1) Define the scope and stakeholders, 2) Map outcomes, 3) Evidence outcomes, 4) Assign monetary values, 5) Calculate the SROI ratio.

Can you explain how to assign monetary values to outcomes?

Sure! Assigning monetary values involves estimating the financial worth of the social outcomes. This can be done using methods like market value, cost savings, or using proxies for non-market values. It's important to gather data and consult stakeholders to ensure the values reflect the true impact.

What are some common challenges in SROI calculation?

Common challenges include data availability, accurately valuing intangible benefits, and ensuring stakeholder engagement throughout the process. Additionally, it can be difficult to establish a clear causal link between activities and outcomes.

How can I improve the accuracy of my SROI calculation?

To improve accuracy, ensure thorough stakeholder engagement, use reliable data sources, and consider multiple valuation methods. Regularly review and update your assumptions and calculations based on new evidence.