Measuring Outcomes: The Benevolent Society's Experience with Social Benefit Bonds
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Transcript of Measuring Outcomes: The Benevolent Society's Experience with Social Benefit Bonds
Measuring Outcomes The Benevolent Society’s experience with Social Benefit Bonds March 2016
Presenter Wendy Haigh Executive Director, Social Investment The Benevolent Society
200 years of social innovation 1901
One of Australia’s first maternity hospitals
1999
Established Social Leadership Australia
2002
Co-founded Social Ventures Australia
2010
Jointly founded Goodstart and acquired ABC Learning Centres
2009
Introduced the Apartments for Life concept to Australia
Australia’s first charity founded
1813
Led campaign for the world’s first old age pension
1896
2013
Social Benefit Bond launched
A Social Benefit Bond seeks to address a social problem that is very expensive for government
with a program that has measurable outcomes to demonstrate success
generates savings to government, from which investors receive a financial return
that is funded by upfront private investments
Child protection in Australia
The number of children in OOHC nationally has risen by 340% in the past 15 years.
More than 143,000 children received child protection services nationally in 2013-2014.
More than 70% of families needing intensive family
support don’t get it.
Indigenous children are 11 times more likely than other children to
be in OOHC.
Each child in foster care costs on average $60,000 per year.
Some high-need foster children cost up to $288,000 a year.
$3.3 billion spent nationally on child protection and OOHC services in 2013-2014.
Our intensive support program costs approx. $25,000 per family.
Cost of keeping children safe
Our Social Benefit Bond • $10 million raised
• In partnership with CBA, Westpac & NSW Government
• Funds a new program called ‘Resilient Families’
• Working with up to 400 ‘at-risk’ families over 5 years
• An intensive wraparound service that works to improve children’s safety
• Goal: to prevent children being removed into foster care
Structure Overview
How the Bond is measured
Monitoring framework
Bond Outcome Measures
+ + 17% x SARA 17% x Helpline 66% x OOHC
Improvement Percentage
Performance Percentage
Theoretical investor returns: 5% for Class P and 8% for Class E
Our result at 30 June 2015
What are the returns? Reduction in child protection activity
Annual compounded return to Class P
(capital protected)
Annual compounded return to Class E (capital exposed)
Below 5% Capital only Nil
5% - <15% Capital + 5% Capital + 8%
≥15% - <20% Capital + 6% Capital + 10.5%
≥20% - <25% Capital + 7% Capital + 15%
≥25% - <35% Capital + 8% Capital + 20%
≥35% - <40% Capital + 9% Capital + 25%
≥40% Capital + 10% Capital + 30%
Child & Family Outcomes & Indicators
Resilience Outcomes Families’ needs at entry and exit
Resilience Outcomes Families’ personal wellbeing index at entry and exit
Benefits of SIBs
Unlock new type of funding
Improve accountability
Improve evidence base
Harness innovation
Deliver benefits for us all
Q&A
Thank you
The Benevolent Society [email protected] (02) 8262 3400 www.benevolent.org.au Impact Investing Australia www.impactinvestingaustralia.com Deloitte www.deloitte.com/au/
Further information