Why use SROI?

An SROI analysis can serve many purposes and can help with a range of activities: strategic planning, raising the organisation’s profile or making a stronger case for future funding. It provides useful information not only to the third sector organisations but also to funders, investors, and policy makers.

If you are a third sector organisation, using SROI will give you a management tool to guide resource allocation and improve performance, to monitor a project or activity and evidence impact and to communicate added value if competing for a tender.

If you are a funder or investor, using SROI will give you a method of assessing the performance of an investment against your objectives, and of measuring the overall returns from the support and funding you provide.

If you commission public sector services, using SROI will give you a means of assessing the value beyond the financial return of a contract, and as a means of tracking the benefits of a commission against singe outcome agreements.

If you are a policy maker, using SROI allows you to measure understand and communicate the value of the third sector and the activities of organisations within it.