How much social benefit does a non-profit organisation create?

How social research helped education non-profit FLUPP measure the social return on investment of its activities

By FLUPP, the Lucia and Pelerson Penido Foundation.


Assessing SROI

After four years of operation, FLUPP Foundation was keen to demonstrate its value as a non-profit organisation and to establish the effectiveness of its VIM project (education in very early childhood) with the aim of applying this model to other municipalities. The objective was to identify Social Return on Investment (SROI) evaluation as the most efficient way to present strong evidence of VIM’s impact.


Focus group and surveys

The evaluation focused on Roseira, one of four municipalities that host VIM. The process of quantifying the social benefits of the charities’ efforts in financial terms involves:

Identifying all of the stakeholders, or people who had been affected and had changed as a result of the program, and predicting the effect of the program on them. Identifying measurable indicators of the changes such as indicators of the children’s cognitive development and sociability. Collecting the data associated with these indicators through focus groups and surveys, which are also used in order to give a voice to all of the stakeholders. Assigning financial value to the program outcomes, by using market values of paid-for services that achieve similar results to VIM’s activities. Calculating the total value of the benefits VIM has created in Roseira.

So what?

SO WHAT? Data-based evidence for social investment

The SROI evaluation indicated that for every R$1 of investment in VIM, R$4.08 of social value was being created. In other words, VIM was more than quadrupling the value invested. FLUPP now have clear, data-based evidence that VIM is achieving its aim in having a significant, positive impact on young children’s development. IDIS’ SROI services have affirmed the relevance of FLUPP and given the foundation a strong case for continuing its valuable work into the future.

Furthermore, these numbers give a strong case and argument to FLUPP to bring to donors, volunteers, as well as local governments for the continuation and expansion of its efforts.