How can we create the most impact for coffee-farming households with the limited resources we have?
Resource allocation is one of the toughest challenges for any impact-driven organization. Every euro we invest should generate the highest possible return for farming communities, but how do we measure success across different internventions?
This is where Social Return on Investment (SROI) becomes a critical tool. More than just a way to assess past performance, SROI allows us to make data-driven funding decisions before a project even begins. By estimating both impact and cost-effectiveness in advance, we ensure that resources are directed toward the most promising solutions.
SROI is based on a simple principle: comparing the benefits an investment generates for its target group against its costs. However, in practice, this process is complex and requires careful calibration. It is important to put the SROI in context, especially when operating across regions with vastly different conditions such as farm sizes, poverty levels, and access to resources.
Why SROI Matters
Many organizations struggle with balancing impact and efficiency. Traditionally, nonprofits measure success by tracking outputs — such as the number of farmers trained or the amount of funds disbursed. However, these metrics do not reveal whether the investment actually improves livelihoods. SROI shifts the focus from activities to outcomes by asking:



What impact does this investment create?
Before an investment
By estimating potential return, we can prioritize high-impact projects.
During implementation
The modelled SROI allows us to understand the impact pathways of the project as well as main levers, critical assumptions and knowledge gaps. It tells us which variables to monitor during implementation.
After completion
By evaluating effectiveness, we can scale what works and discontinue what doesn’t and learn what needs to be improved.
Key Challenges and Insights
Applying SROI across different projects and regions has revealed some critical insights:
- In high-need areas, a lower SROI might still justify investment if the intervention addresses fundamental needs that would otherwise go unmet.
- Measuring income distribution across the target group and relative income change on household level - the percentage increase in a household's earnings rather than absolute income growth - can provide additional insights into economic uplift.
- While social and environmental benefits such as biodiversity gains or community resilience are important outcomes, monetizing these factors within SROI can be challenging and requires many assumptions. We as HereWeGrow have decided to focus on income effects for our SROI calculations but other organisations - based on their goals and vision - may want to include additional aspects.
- Reliable impact and cost data is not always available in the same quality across projects. We are working toward closing knowledge and data gaps in our programs by funding rigorous evaluations. However, in some cases we need to work with the data that is available and make it transparent.
As we move into 2025, we remain committed to strengthening our methodology and maximizing our impact — because every investment should drive meaningful, lasting change.
Our Approach Moving Forward
To ensure consistency and transparency in our impact assessment, we have adopted the following principles:
- Applying a standardized framework with a fixed 10-year timeframe and 10% discount rate to allow comparison across projects taking into account the agricultural context and risky environment of our countries of operation.
- Prioritizing economic impact rather than attempting to quantify social benefits in monetary terms.
- Exploring additional indicators next to SROI to provide a more holistic view of project impact.
SROI is not just about numbers — it is a decision-making mindset that helps us focus on what truly improves lives. By continuously refining our approach, we aim to contribute to a more evidence-driven, transparent, and impactful coffee sector.
We welcome discussions with partners and peers: How do you use SROI in your work? What challenges and opportunities have you encountered?