Over the past few years, social return on investment (SROI) has slowly but surely made its way into the mainstream. Though it’s been around since 1999, there are still plenty of misconceptions about this evaluation method. In reality, SROI helps non-profits measure impact and grow sustainably so they can achieve lasting change in the world and bring about greater social good – just like they want to do. Website - https://louisjeanfoundation.org/

2. The Real Value Of A Non-profit: Why Social
Return On Investment Matters

3. What Is SROI
Over the past few years, social return on investment (SROI) has slowly but
surely made its way into the mainstream. Though it’s been around since 1999,
there are still plenty of misconceptions about this evaluation method. In
reality, SROI helps non-profits measure impact and grow sustainably so they
can achieve lasting change in the world and bring about greater social good
– just like they want to do. SROI can even help funders determine where their
money will make the biggest difference – which ultimately benefits everyone!
Here’s how non-profits can put SROI to work for them today…
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.

4. What Are The Advantages Of SROI?
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.
A SROI study is usually done by an external, impartial third party that
analyzes the relationship between an organization's social objectives and the
broader economic context.
This type of study can help show where improvements to business practice or
investment could make an impact at scale.
It gives organizations a better understanding of the relative contribution to
their bottom line.
SROI takes into account both revenue and costs, making it different from
other traditional ROI methods which may not include full costs and don't
necessarily take into account net profit, taxes, depreciation, amortization, and
other deferred expenses.

5. How Does It Work?
Social return on investment, or SROI, is an increasingly popular measure for
calculating the value generated by investments in social enterprises and non-
profits. It measures not only the financial returns that these organizations
produce, but also their positive social impact. By including both qualitative
and quantitative factors in its measurement toolkit, it calculates a more
complete picture of whether the financial resources have been put to good
use. Social enterprise professionals can consider using this measure as well to
help focus their work. After all, many social enterprises are not-for-profits too.
The key question is how do you know if your organization has done enough?
You might be getting great results from your product or service – you’re
fulfilling your mission and making money at the same time – but what if
there are still a lot of needs out there? There are still lots of problems left to
solve.

6. How Can I Use SROI In My Everyday Life?
Even if you don’t work in the non-profit sector, chances are that you’re
familiar with the concept of social return on investment (SROI). SROI is a term
created by Professor Michael Porter and stands for the value or benefit that
one party receives from an interaction with another party. A traditional ROI
calculates the amount of money an investor earns from investing capital or
time. But, SROI is designed to measure non-financial outcomes like social
benefits and economic benefits. For example, when an individual invests time
in volunteering for their local food bank, they may be deriving utility from
increasing their feeling of community membership and increasing their
perception of self-worth. These types of benefits can be calculated through
an SROI analysis.

7. Contact Us:
 Address - 147-08 235 Street Rosedale NY 11422
 Email - info@louisjeanfoundation.org
 Phone - (844) 829-2292
 Website- https://louisjeanfoundation.org/
 Blog- https://louisjeanfoundation.org/the-real-value-of-a-non-profit-why-
social-return-on-investment-matters/