One of One Acre Fund’s key metric’s is SROI, or social return on investment. This is a ratio that compares the amount of funds donated to the additional profits generated for farmers who participate in our program. In other words, it measures how many additional dollars end up in a farmer’s pocket for each dollar of donor investment.
A cash transfer model has an SROI of 1:1, as each dollar donated equates to one dollar given to the recipient. One Acre Fund has an SROI of 1: 3.9 (for more detail on this, you can reference our webpage on SROI here: https://​​oneacrefund.org/​​our-impact/​​how-we-measure-impact/​​what-social-return-investment). All models have a role to play in the social sector, and cash transfer is a critical tool in the toolbox. But for One Acre Fund, we see leverage on donor investment is a key north star efficiency metric for investments in a farming household’s productivity.
Thanks for the response Claire! I’m not sure I quite understand why cash transfers would be 1:1 (if you are given $100 and use it to buy a goat to sell the milk, you get more than $100 of value), but I’ll check out the link to find out more. BTW- the link doesn’t work for me, is it broken for you as well?
Thanks for sharing Claire!
No worries if not, but do you know how you compare to GiveDirectly as a benchmark in the areas where you work?
Thanks for the question, Toby!
One of One Acre Fund’s key metric’s is SROI, or social return on investment. This is a ratio that compares the amount of funds donated to the additional profits generated for farmers who participate in our program. In other words, it measures how many additional dollars end up in a farmer’s pocket for each dollar of donor investment.
A cash transfer model has an SROI of 1:1, as each dollar donated equates to one dollar given to the recipient. One Acre Fund has an SROI of 1: 3.9 (for more detail on this, you can reference our webpage on SROI here: https://​​oneacrefund.org/​​our-impact/​​how-we-measure-impact/​​what-social-return-investment). All models have a role to play in the social sector, and cash transfer is a critical tool in the toolbox. But for One Acre Fund, we see leverage on donor investment is a key north star efficiency metric for investments in a farming household’s productivity.
Thanks for the response Claire! I’m not sure I quite understand why cash transfers would be 1:1 (if you are given $100 and use it to buy a goat to sell the milk, you get more than $100 of value), but I’ll check out the link to find out more.
BTW- the link doesn’t work for me, is it broken for you as well?