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Third Sector Research Centre highlights challenges with SROI

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Wed, 12/01/2011

In a new report, the Third Sector Research Centre (TSRC) has concluded that social return on investment (SROI) has a number of limitations and challenges.

SROI is an increasingly popular method for the charity sector to measure its social, environmental and economic impact. It involves attributing a financial value to inputs and outcomes, and calculating these as a ratio. For instance, if the SROI is 3:1, it means that every pound invested in the organisation generates a social value worth £3.

However, the TSRC report warns that the method leaves a great deal of space for personal judgement.

Source: Civil Society Media
Working and briefing paper webpage on TSRC site.