2016 Volume 16 Issue 1 Pages 5-14
In recent years, impact measurement methodologies for nonprofits and social enterprises such as Social Return on Investment (SROI) have received plenty of attention. Although certain methodologies are currently under discussion, it is important to design a measurement style in accordance with a conceptual framework for measuring impact. Many kinds of impact measurement methodologies such as IRIS, SIMPLE, GIIRS, and SROI have been derived till date. Nonprofits and social enterprises need to choose a methodology that best fits the purposes of their impact measurement. Therefore, we first need to consider the purpose, instead of a certain methodology. SROI, for example, has two distinctive features: (1) monetization of the value of impact and (2) stakeholder involvement in the measurement process. This paper argues that nonprofits are motivated to adopt SROI to secure the fundraising competition with a high SROI value, although the comparability of SROI value is very limited. It also argues that using monetization as a common language among stakeholders is not value-neutral. There have been many studies and discussions over SROI in Europe and the US. However, nonprofits have not yet widely accepted impact measurement in Japan. We need to think of diffusing an impact measurement framework to nonprofits and help them choose their own measurement methodologies properly.
