Social Return on Investment (SROI) analysis is a framework used to measure and understand the social, environmental, and economic value created by an organization’s activities, relative to the resources invested. It goes beyond financial returns and looks at the broader impact on society.
NGOs need SROI analysis because it helps them demonstrate the value of their work to stakeholders, including donors, beneficiaries, and the community. It ensures transparency, improves accountability, and helps attract funding by showcasing the tangible social benefits generated by their programs. SROI also enables NGOs to make data-driven decisions to maximize their impact.