Challenges for social impact measurement in the non-profit sector

This chapter discusses the topic of measuring, accounting, reporting and evaluating impact, with a focus on the non-profit organizations (NPOs). It starts by discussing the limitations of conventional accounting frameworks when applied to NPOs, by also considering the increasing pressures NPOs face in terms of funding, particularly after the global financial crisis. Within this context, the chapter presents the current debate around the notion of impact, Theory of Change and impact measurement and it also discusses major opportunities for further investigation. It explores: i) the relevance of a standardized approach to social impact measurement; ii) the emergent need to adopt a multiple-stakeholders perspective in social impact measurement; and iii) the current debate around the Sustainable Development Goals (SDGs) and the role of NPOs’ social impact measurements within this context. In these concluding remarks, the chapter presents some personal viewpoints and possible challenges regarding social impact measurement.