Social Impact (or Benefit) Bonds combine impact measurement and the economic value of successful programs with financial institutions, investors, government and community sector organisations. Private and institutional investors provide long term funding for a social change program over a period of several years (which is why this is often called ‘patient capital’) with the expectation that the return on their investment will be both financial and social gains.
Impact measures monitored throughout the investment period capture the savings that success brings to government spending. The government then uses these saving to pay back to the investors, with the amount returned on investment dependent on the success of the program – in theory, everybody wins. In reality, they are very new in Australia and there is much to be learned. In 2013 the NSW Government commenced a trial of SBBs with two programs that are now in their second year.
For our next webinar in the ‘Diversifying Revenue Series’, Matrix on Board and Community 21 are delighted to host Wendy Haigh, Executive Director of Social Investment for the Benevolent Society who will be presenting the story of their experience so far with this trial, and to talk about social investment, partnering and the exciting opportunities and challenges that ‘patient capital’ brings.
To listen to the recording, follow this link.