HOW TO MEASURE
SOCIAL IMPACT
A step-by-step guide to quantifying social value, calculating ROI, and proving your nonprofit's impact to funders and stakeholders.
WHAT IS SOCIAL IMPACT?
Social impact is the effect your organization has on people's lives and communities—the lasting changes that occur because of your work. It goes beyond counting outputs (meals served, clients counseled) to measuring outcomes (hunger reduced, mental health improved, economic mobility achieved).
Measuring social impact means assigning metrics and, often, economic value to these outcomes. This allows you to compare programs, communicate with funders, allocate resources efficiently, and demonstrate accountability.
THE 5-STEP PROCESS
Define Your Theory of Change
Map how your activities lead to outcomes. What changes because of your work? Be specific: 'Job placements' not 'helping people.'
Example:
Youth job training → skill development → job placement → increased income → reduced poverty
Identify Measurable Outcomes
Choose outcomes you can track with data. Avoid vague goals like 'empower communities'—use concrete metrics.
Example:
Measurable: 50 youth placed in full-time employment within 90 days. Not measurable: Youth feel more confident.
Assign Proxy Values
Use research-backed values to monetize outcomes. Our SROI calculator includes values from WSIPP, HACT, and Robin Hood Foundation.
Example:
Job placement value: $45,000 (lifetime earnings increase from employment, WSIPP)
Apply Discount Factors
Account for deadweight (what would've happened anyway), attribution (other contributors), and displacement (negative effects).
Example:
If 20% would've found jobs without you, apply 20% deadweight discount
Calculate Your Ratio
Divide total social value by investment. A 3:1 ratio means every $1 invested creates $3 in social value.
Example:
$150K investment → $450K social value = 3:1 SROI ratio
MEASUREMENT METHODS COMPARED
| Method | Time Required | Cost | Credibility | Best For |
|---|---|---|---|---|
| SROI Calculator | 1-2 hours | Free | Medium | Grant narratives, board reports |
| Full SROI Audit | 3-6 months | $15K-$50K | High | Major funders, regulatory compliance |
| Impact Survey | 1-3 months | $2K-$10K | Medium | Beneficiary feedback, outcomes |
| Randomized Trial | 1-2 years | $50K+ | Very High | Academic research, causation |
| Dashboards | Ongoing | $5K-$20K setup | Medium | Internal tracking, KPIs |
COMMON MISTAKES TO AVOID
Confusing Outputs with Outcomes
Why it matters: Outputs are activities (workshops held). Outcomes are changes (skills gained). Funders want outcomes.
How to fix: Always ask: 'So what?' If you trained 100 people, what happened to them after?
Cherry-Picking Metrics
Why it matters: Only reporting successes creates distorted pictures and erodes trust when problems emerge.
How to fix: Report negative findings honestly. Show what didn't work and what you learned.
Overclaiming Impact
Why it matters: Claiming 100% credit when other factors contributed makes evaluation non-credible.
How to fix: Apply deadweight, attribution, and displacement discounts to account for other influences.
Using Arbitrary Proxy Values
Why it matters: Making up values ('we think a job is worth $10K') undermines the entire calculation.
How to fix: Use peer-reviewed values from WSIPP, HACT, Robin Hood Foundation, or government sources.
No Baseline Data
Why it matters: Without knowing where beneficiaries started, you can't prove you caused the change.
How to fix: Collect baseline data before program launch, or use control groups for comparison.
Ignoring Cost-Effectiveness
Why it matters: High total impact isn't useful if costs are unsustainable or inefficient.
How to fix: Track cost per outcome and compare to alternative interventions.
START MEASURING TODAY
Use our free tools to calculate social impact in minutes. No spreadsheet expertise required.
SROI Calculator
Pre-loaded with 100+ verified proxy values. Input your outcomes, adjust discount factors, get your SROI ratio instantly.
Volunteer Value Calculator
Quantify volunteer contributions using Independent Sector methodology. Includes pro-bono multipliers for specialized services.
ADDITIONAL RESOURCES
Social Value UK
SROI standards, case studies, and practitioner network
Washington State Institute for Public Policy
Benefit-cost analyses of evidence-based programs
HACT Social Value Bank
UK-based wellbeing valuation methodology
Independent Sector
Volunteer value calculations and nonprofit research
Robin Hood Foundation
Poverty-fighting metrics and benefit-cost ratios
GuideStar by Candid
Nonprofit profiles, financials, and impact data
READY TO
PROVE YOUR IMPACT?
These tools get you started. We can help you build custom evaluation frameworks, automate impact reporting, and create stakeholder dashboards.