Measuring social impacts in drug addiction-based nonprofits using SROI

What is it about?

A significant part of the financial resources on which many non-profit organisations rely to carry out their activities comes from third parties. As a consequence, these organisations are often socially perceived as mere "resource managers" or even "spending units", as they generate social impacts that are often not valued. Through the application of the SROI methodology, this work identifies, measures and monetizes the social impacts generated by a social organization dedicated to the treatment of drug addicts. The aim of this study is to contribute to overcoming the above perception, which we consider short-sighted or "myopic", by making visible and quantifying the wealth that these organisations contribute to society.

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Photo by Bud Helisson on Unsplash

Photo by Bud Helisson on Unsplash

Why is it important?

The study incorporates not only the direct and indirect costs of this disease to society, but also the intangible social costs, which are excluded in most economic studies. These costs are equivalent to social savings generated by these entities, and often remain invisible. In our opinion, what is not measured, is not seen and risks being "non-existent". It is therefore necessary to vindicate the role of non-profit social organisations as contributors of social wealth to economic activity. In the specific case analyzed, the results show that the organization generates wealth valued at 2.9 euros for every euro it receives from different sources (public and private). This wealth is fully returned to society.

Perspectives