To close out 2025, The Durability Collective hosted a LinkedIn Live conversation focused on a critical question for the nonprofit sector: How can nonprofits use Return on Investment (ROI) to understand and amplify their impact?
The session, titled “Using ROI in Livelihood Impact Work,” broke down the fundamentals of impact measurement, demonstrating the ways that ROI measurement can be an accessible and practical tool for nonprofit leaders dedicated to improving livelihoods. Mona Mourshed, Founding Global CEO of Generation, moderated the session. She was joined by Spencer MacColl, Chief Impact Officer of GitLab Foundation, and Rachel Proefke, Associate Director, Impact & Learning of Livelihood Impact Fund, who shared their experience in integrating rigorous measurement into high-impact social programs.
For those who missed the discussion, you can watch the full recording here:
https://www.linkedin.com/events/7393633567785951232
The discussion centered on the necessary shift in perspective from measuring simple activities to quantifying the true value created, focusing on how ROI can transform both internal operations and external fundraising efforts.
Shifting to Return on Investment (ROI)
The panelists emphasized that traditional financial ROI must evolve when applied to social causes. Mourshed said, “Making sure that every philanthropic dollar gets the highest possible return in terms of livelihood for those being affected is the foundation of the work.”
Livelihood programs often generate non-monetary outcomes (e.g., increased confidence, improved family stability, long-term policy change). ROI models for social impact programs provide the framework to quantify these complex benefits, ensuring the program’s full value is recognized by stakeholders and funders.A core message was that ROI modeling should not be viewed as a technical or intimidating concept, but rather as an accessible tool that simply helps organizations tell a compelling, data-backed story of change.
ROI Fuels Organizational Learning and Improvement
The greatest benefit of ROI isn’t just external reporting; it’s internal strategy. ROI acts as a feedback mechanism that guides resource allocation and program design. As MacColl mentioned, “ROI becomes a really powerful tool in terms of where to double down in your strategy.”
By setting clear benchmarks and measuring the return, organizations generate high-quality data that directly informs strategic adjustments, rather than relying on anecdotal evidence.Panelists discussed the necessity of building a clear Theory of Change before beginning measurement. This process helps leaders confidently attribute outcomes to their specific interventions, ensuring investment is focused on the most effective activities.
ROI Amplifies Impact for Funding and Partnerships
For nonprofits seeking to scale, ROI provides a powerful, universal language for engaging partners. Proefke said by way of example, “For every $1 of philanthropic funding that goes into delivering an intervention, we hope to see $5 out for participants over the next five years.”
Measuring ROI helps translate social results into the investment language of corporate partners and institutional funders. Presenting “a $X return in community value for every $1 invested” is far more persuasive than simply reporting on the number of people served. In addition, quality impact data moves the conversation from simply “doing good” to making a proven, high-leverage investment in sustainable change.
The Durability Collective: A Movement for Change
The webinar was hosted by The Durability Collective, a community of funders, practitioners, and researchers around the world who are building collective capability to measure social impact and create change that lasts. Contrary to conventional wisdom, the Collective believes medium- and long-term outcomes measurement can be feasible and cost-effective.
Watch the LinkedIn Live Recording:
