Ohio University measures impact utilizing the Social Return on Investment (SROI) methodology. SROI provides quantified measures of social impact in economic terms, enabling enterprises, organizations, programs, and projects to express value in a return ratio: For every $1 invested, we generate $XX of social impact.
Traditional financial return on investment (ROI) expresses financial returns to private investors. SROI measures economic value of social impact investments for returns to specific stakeholders or to society generally in terms of costs avoided or benefits attained.
SROI provides verifiable measures of the economic value of social impact.
How does SROI enlarge traditional return on investment metrics? What is the role of Sugar Bush Foundation in the adoption of SROI in Southeastern Appalachian Ohio? How are social, environmental, and economic impacts identified through ripple mapping and calculated by fiscal proxies? What is the role of SROI in strategic planning for mission-based social enterprises? This digital story answers these questions by featuring the ground-breaking analytical work of the Impact Measurement Team at Voinovich led by Dr. Allison Ricket in partnership with Habitat for Humanity of Southeastern Ohio, True Pigments , and Passion Works Studio.
Beneficiaries
For-profit social enterprises, impact investors, non-profit entities, philanthropic organizations, public programs, government institutions, and other entities seeking to create public and social value.
Solution
Quantify value created using generally-accepted impact measures and applying data driven metric system to measure—in economic terms—the social value of results achievedcompared with investment required.
Purpose
SROI enables stakeholder consensus for measurable accountability, data-driven investment decisions, strategic planning, and meaningful stakeholder communications.
Differentiators
SROI is not a rating system, certification program, assessment tool, or similar reporting framework that measures the nonfinancial value of social impacts. Rather, it is a “fiscal proxy” calculation of economic value based on key performance indicators, measuring costs avoided and benefits attained, and delivering a “return ratio” that measures how effectively investment is leveraged to achieve results.