Social impact bonds

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About

This consultation has concluded

Updates and outcomes
What you said

The South Australian Government is exploring social impact investment as part of a range of initiatives to promote innovation in the delivery of social and community services.

Following evaluation of an expression of interest, on 27 August 2015 the government announced that it will proceed to negotiate with local homelessness service providers, Hutt Street Centre and Common Ground Adelaide, to develop South Australia¹s first social impact bond.

About

This consultation has concluded

Updates and outcomes
What you said

The South Australian Government is exploring social impact investment as part of a range of initiatives to promote innovation in the delivery of social and community services.

Following evaluation of an expression of interest, on 27 August 2015 the government announced that it will proceed to negotiate with local homelessness service providers, Hutt Street Centre and Common Ground Adelaide, to develop South Australia¹s first social impact bond.

Social impact bonds (SIBs) and ‘pay by results’ contracts are about better outcomes for individuals and communities. Under these arrangements governments agree to share the financial benefits delivered through innovative social programs. Private investors may then provide the capital to pay for the program delivery, and then receive a rate of investment return that is linked to the success of the program, as measured against clearly defined outcome objectives.

The South Australian Government has been engaging with the social sector as we move toward a trial of SIBs in South Australia, to ensure we have the greatest chance of making this concept a reality. A range of information is available to assist organisations who may be interested in participating in the further development of the SIB concept:

1. Discussion paper and expression of interest

A preliminary discussion paper, 'Building a Stronger Society', was released in December 2013 and responses were sought from interested organisations including service providers, investors and financial intermediaries.

More details about the potential focus areas is contained in the expression of interest documentation.

2. ‘Laying the Foundations’ capacity building workshops

The South Australian Government selected Social Ventures Australia (SVA) to deliver a series of training workshops as the next step to build capacity amongst service providers and government staff. These workshops were held over July and August 2014. South Australian based organisations that were unable to attend the workshops but would like to receive copies of the training material can do so by clicking here.

3. Social impact bond case studies

Over the last few years SIBs have been trialled in a growing number of countries. No two SIBs are alike, reflecting the high level of experimentation and innovation that occurs when a new market develops. SVA has developed case studies summarising the key features of a range of SIBs from around the world.

4. Social impact bond self-assessment tool

Deciding whether a Social Impact Bond is a viable funding model for a particular social program is a complex process that involves the consideration of a large number of factors. To help organisations think about these issues the South Australian Government and SVA have developed a self-assessment tool that may assist in identifying the potential strengths and challenges in developing a SIB for a particular program.

5. Further information

Consultation has concluded
  • Updates

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    by BTT_Migration_Team,


    Social impact bonds - update

    In February 2017, the first social impact bond in South Australia was released to investors. This is the first social impact bond in Australia that specifically targets homelessness, with a new intensive client-centred intervention – known as the Aspire program – to be delivered by a coalition of specialist homeless service providers, led by the Hutt St Centre and Common Ground Adelaide.

    The program will target 600 homeless people in metropolitan Adelaide, with clients receiving assistance for up to 3 years. View the Media Release – Launch of the Aspire social impact bond to investors (8 February 2017) (PDF 158KB)

    This short video clip illustrates the difference that can be made to improve the lives of homeless people, through the Aspire program.



    Potential investors are welcome to contact Social Ventures Australia for more information. The information memorandum and related documents can be downloaded from the SVA website.

    Social impact bonds (SIBs) and ‘pay by results’ contracts are about better outcomes for individuals and communities. Under these arrangements governments agree to share the financial benefits delivered through innovative social programs. Private investors may then provide the capital to pay for the program delivery, and then receive a rate of investment return that is linked to the success of the program, as measured against clearly defined outcome objectives.

    Further information about the South Australian Government’s development of social impact investment in the state is provided on the About page.