Accounting for social return on investment (SROI): the costs and benefits of family-centred care by the Ronald McDonald House Charities

This study aims to assess the effectiveness of Social Return on Investment (SROI) as a measure of the social impact produced by non-profit organizations and social enterprises that support family-centred care, an approach that focuses on the pivotal role of families in paediatric health care. The article offers an analytical evaluation of the SROI created by the Italian branch of the Ronald McDonald House Charities, and highlights a) the participatory analysis of stakeholders and outcomes; b) the measurement of inputs; c) the definition of outputs and proxies for the measurement of outcomes; d) the calculation of the SROI ratio; and e) the results of a sensitivity analysis. This study discusses the advantages and shortcomings of SROI analyses, the practical implications of our research on governance and management, and the role of engagement in managing the expectations of stakeholders. The value of SROI measurements in shaping strategic and management decisions — with special emphasis on stakeholder relations — is also discussed. Non-profit organizations and social enterprises often require tools that assess the outcomes of their activities. The present research can provide new guidance to SROI analysts, while also drawing attention to the most suitable proxies and indicators for evaluating the SROI of organizations operating in the health care sector.