Linked to our series on Social Value, this blog explores the meaning of Social Return on Investment (SROI) and why we believe it should be a key factor in the decision making of stakeholders.
At Dream Big Sports, our focus is not about pounds and pence but instead the positive impact that we can have on the lives of young people as a result of our growth and success as an organisation, hence why we are proud to operate with non-profit status. To help us achieve our mission, understanding the profound social impact of any investment made into our organisation and our services has been an insightful journey. So, let’s delve into the concept of SROI and unravel its significance in shaping a brighter future across our communities.
Decoding Social Return on Investment (SROI)
At its essence, Social Return on Investment (SROI) is a framework that looks beyond financial gains to measure the broader social value generated by an investment. Whether it’s funding a local community project, supporting educational initiatives, or launching new programmes, SROI helps us assess the real impact of our actions on society.
How Do We Apply SROI?
Identifying Stakeholders: SROI begins by identifying all stakeholders involved in an investment, including beneficiaries, funders, and the wider community.
Defining Outcomes: Next, we define the intended social outcomes of the investment, tailored to the unique needs and aspirations of communities.
Measuring Inputs and Outputs: SROI involves quantifying both the resources invested and the social outcomes achieved. This requires gathering data and evidence specific to the context to track progress and measure success.
Valuing Impact: One of the key challenges in SROI is assigning a monetary value to social outcomes. This involves using various valuation techniques that resonate with the socio-economic landscape.
Calculating SROI Ratio: The final step is to calculate the Social Return on Investment ratio, comparing the social value created to the resources invested. A ratio greater than 1 indicates that the investment has generated positive social value, contributing to the betterment of communities.
Why Does SROI Matter?
Maximizing Impact: SROI helps us maximize the social impact of our investments by identifying where resources can be most effectively deployed to achieve meaningful outcomes.
Improving Decision-Making: By providing a quantitative measure of social value, SROI enables better-informed decision-making by investors, funders, and policymakers, tailored to the needs of communities.
Enhancing Accountability: SROI promotes transparency and accountability by requiring organisations to demonstrate the real-world impact of their investments, fostering trust and collaboration.
SROI at Dream Big Sports
Social Return on Investment (SROI) offers a powerful tool for measuring and maximizing the positive change we can create within our communities. By embracing the principles of SROI, we can ensure that all investments into our organisation or services not only generate financial returns but also contribute to a more equitable, sustainable, and prosperous future for all.
Evidenced in our Social Value Annual Report 2022-23, in the most recent academic year, Dream Big Sports generated a Social Return Investment of £3.10 for every £1.00 invested into our services meaning that your pound really does go further than our pocket. Whether you are a local school looking to partner with a reputable organisation, a parent or carer seeking engaging childcare or an individual keen to develop your skill set with Training & CPD, we can ensure your investment and trust in our team benefits the wider community.
To download our Social Value Annual Report 2022-23 and keep up to date with our Social Value journey, click HERE.
#TeamDreamBIG