Measuring Social Value for NFP Program

Running head: SOCIAL VALUE 1
Social Value
Name
Institutional Affiliation

SOCIAL VALUE 2
Introduction
Social value is described as the overall quantification of relative significances that are
placed by individuals on the changes they encounter in the course of their lives (Andreaus,
Costa, & Parker, 2014). As such, some of the value is captured in market prices. Not for Profit
Organizations, they are driven by social objectives. At any given time, therefore they will always
want to know whether they are achieving the objectives or not. With the help of social value
principles, it is possible for these organizations to design systems that will facilitate the capture
of the required information (Tschirhart & Bielefeld, 2012). Such information goes a long way
into aiding the development of strategies that will be implemented by the organization and
subsequently facilitate increment of the desired social value, performance comparisons against
predictions to manage activities. As a result, it becomes possible for such organizations to relay
essential and genuine information to beneficiaries as well as funders.
Measuring Social Value for NFP Program
Albeit a difficult undertaking, it is of great significance to measure social value. This is
more so applicable for NFP organizations in their endeavor of attaining their objectives and
consequently bringing value to their beneficiaries (Epstein & Yuthas, 2014). By developing
means of determining whether they are making a difference, organizations are able to develop
plans on how to invest wisely and improve their overall performance over time. It, therefore,
goes without saying that measuring social value lays the foundation on which financial decisions
are made.
Sectors of operation for Not for profit organizations;
- Health - religion - Education - Culture
- Aged care - social services - Sports & recreation

SOCIAL VALUE 3
Reasons for Measuring Social Value
There exists a huge array of reasons that ascertain the significance of measuring social
value for NFP organizations. First, it facilitates the achievement of the organization's mission
(Singh, 2016). Organizations with social purpose have a wide classification of missions ranging
from the elimination of poverty, improvement of learning outcomes and health statuses to
increasing life opportunities for the ever growing population. In order to derive means of
achieving the desired change, it is vital to take into consideration the theory of change. The
theory requires one to inter-relate their activities, outputs, outcomes and the subsequent
implications (Epstein & Yuthas, 2014). With this theory being the foundation of evaluation, the
needs and goals of the organization that will propel it towards achieving its mission ought to be
both realistic, achievable and measurable. Having measurable outcomes as well as collecting
data that ascertain the impact of the organization's interventions helps prove the entity's social
value. It additionally facilitates accountability and ensures that the organization is moving
towards its stated mission (Mook, 2013).
Next on, when an NFP organization measures its social value and makes it accessible to
the public domain, it earns trust and subsequently attracts additional funding. In the recent past,
investors have raised their social consciousness. Consequently, they are only interested in
supporting projects that have a positive social impact. Organizations are also under constantly
increasing pressure from funders as well as donors to prove that their programs have positive
environmental and social impact. On top of being able to showcase how potential funds would be
spent, the ability to articulate the value of impact in the society emanating from donors funds
Sectors of operation for Not for profit organizations;
- Health - religion - Education - Culture
- Aged care - social services - Sports & recreation