Demonstrating value
The Community Sector Council of Newfoundland and Labrador (CSC) has heard time and time again of the challenge presented by one question:
“How do we demonstrate the value of what we do?”
CSC has been searching for ways to assist. Now we are partnering with the consulting arm of the new economics foundation (nef) to do just that. nef is an independent think tank that works to find innovative solutions to social, economic, and environmental issues from their base in London, England. They have developed a methodology – social return on investment (SROI) analysis – that is helping community sector and government organizations around the world understand and demonstrate the real value of their work. An SROI analysis tells the story of an organization by explaining exactly how it makes an impact and by translating the social and environmental outcomes of its work into financial terms that can then be placed on a balance sheet.
The CSC, along with its funding partners, is leading a pilot project that will explore the SROI approach in Newfoundland and Labrador. Community organizations from across the province are participating. Through a model that provides supported training and one-on-one guidance, participants will implement an SROI analysis of their own.
What does SROI give an organization?
- A method, backed up with empirical data, to prove the value of the work it is doing and improve how it is done
- Deeper engagement with stakeholders
- A set of skills and tools that allows the organization to understand and demonstrate its impact over the long term
- A chance to take initiative in self-evaluation