The methodology “Social Return on Investment” is a methodology that emphasizes the human experience and how it can change, step by step, our family, our city and our world! It measures the outcomes of an action, taking into consideration the stakeholders’ (people and organizations) experience. It tells the story of change that each stakeholder experienced through this specific activity using the measurement of social, environmental and financial outcome and applies on them monetary values for their evaluation. This permits the calculation of an analogy of benefits/costs. For instance, an analogy 2:1 implies that an investment of 1€ generates 2€ of social value.
The indicator SROI does not focus on monetary units. Money is just a common measurement unit and as a result, it is a useful and acceptable way of conversion of the value. In the same approach that a business plan contains much more information rather than the financial forecasting, the SROI analysis includes case studies, qualitative, quantitative and financial data and based on them the decision making is more sensible.
Read Here the Reintegration Through Sport project – Social Impact- SROI analysis
