Charities 'unable to measure return' on socially responsible investment

A new report examining socially responsible investment found many third sector organisations lacked the skills or resources to measure the benefits accrued from this funding source.

Social Return on Investment (SROI) as a monetary measure of social outcomes was examined and the authors found the concept ’complicated and burdensome’ for donations-reliant organisations, reveals Third Sector.

Measures of SROI could encourage socially responsible investment, the report argues, but present an enormous methodological challenge and a potential drain on capacity.

Dan Leighton, one of the writers of the report by think tank Demos, told the publication government and the charitable sector should work towards creating ’an effective environment for social measurement’.

The author noted while quantifiable appraisals had their place, officials could not expect to apply a universal standard to organisations across the spectrum.

A central message of the report was that SROI remained a ’potentially useful goal’ for both parties to work towards. ADNFCR-2318-ID-19875134-ADNFCR