Abstract
Since nonprofits use third-party funds for their activities, they are often perceived as resource managers or spending units, instead of being considered as social wealth generating entities. The aim of this study is to help to overcome this myopic perception by showing how the invisible wealth generated by these organizations can be made visible. We use the SROI methodology to do so, by identifying stakeholders, outcomes (tangible, intangible) and social impacts in a drug addiction treatment centre. The results show that social impact in monetary terms exceeds that of the inputs used, confirming the idea that addiction-based nonprofits are social wealth generating units. The conclusion drawn is that social impact measurement should be widely used as a management tool and a mechanism for reinforcing the social image of nonprofits.
Highlights
It seems accepted that sustainability is more related to the quality of acting with the purpose of generating a positive and significant impact in critical and relevant areas for society and the planet, rather than implementing complementary actions to minimize the negative impacts that leave the actions of organizations [1,2]
In order to do so, we offer an in-depth examination of SROI (Social Return on Investment) methodology and highlight its applicability for measuring the different social impacts typical of organizations in this field
We argue that SROI blends these items and can be used as a friendly way to show the social value generated by a nonprofit
Summary
It seems accepted that sustainability is more related to the quality of acting with the purpose of generating a positive and significant impact in critical and relevant areas for society and the planet, rather than implementing complementary actions to minimize the negative impacts that leave the actions of organizations [1,2] This way of understanding sustainability is associated with the identification, measurement and disclosure of economic, social and environmental impacts (triple bottom line), but it relies even more on social and environmental issues to measure the total cost of doing business and activities. The individual and collective needs of communities would be impossible to meet, so they play a key role in creating more equitable and prosperous communities Much of this role, at both the macro and the micro level, remains undercover and undervalued due to the methodological constraints of impact measurement. This problem has to do with the difficulty of assessing the impacts associated with intangible social costs
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