Are money-based methods really leading us astray – or have we just forgotten why we started?

“Money talks”, and ain’t that the truth – outside practitioner circles, social value has traditionally struggled to receive the same recognition as good old economic impact.

Money-based social value measurement tools were developed as a way to redress this balance.

By assigning financial proxies to social value, it was hoped that better decisions would be made, resources allocated more effectively, impact communicated in terms stakeholders would understand – and that ultimately more good work would take place as a result.

Of course, measuring social value in money terms was never going to be a perfect solution. It puts highly complex outcomes on a simple scale, which can mean important nuance is lost. And when an organisation loses sight of its “why”, it risks optimising for measurement instead of tangible impact – choosing interventions that monetise well over ones that matter more.

So how do we ensure that money-based systems are used meaningfully?

1. Start with the question, not the method

What do we need to know, and why? We should be using money-based systems because they’re the best tool for the job, not just because they’re expected or familiar.

2. Check your proxies

A money-based system is only as good as its proxies. It’s worth asking how they were developed, who they were developed by, and for what purpose. Are they the right fit for the task?

3. Keep beneficiaries at the heart

The more we can involve communities and people with lived experience, the more meaningful our analysis will be.

4. Give context

Where there is uncertainty, or assumptions have been made, we should always show our working. Explain what proxies were used, if anything was left out, and the reasons.

5. Hold outputs lightly

Use figures to inform decisions alongside other evidence (qualitative data, case studies, stakeholder feedback). Money-based methods are a useful tool, not a definitive answer.

Measuring to make a difference

Used with care and intention, money-based measurement can help us forecast and evaluate investments, guiding informed, value-based decisions. It can help us enable even more social value, by showing us actions that generate more impact. And it can reveal our progress, so we can keep on improving.

But we need to use it with intention. We should acknowledge limitations when necessary, and give context where we can. And we should keep asking whether it is the right fit for the job in hand.

Instead of asking “how much social value?”, we should be asking “what do we actually want to know – and does monetisation help us find out?”

Find more social value thoughts and opinions from CHY Consultancy over on our insights page. Or follow us on LinkedIn to learn more about the work we do.

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