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Steve Hawkins
Steve Hawkins
Steve Hawkins
Steve Hawkins
Steve Hawkins
Steve Hawkins
Steve Hawkins
Steve Hawkins
Steve Hawkins
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Steve Hawkins

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Published in: Economy & Finance, Business
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  • 1. Social Benefit Bonds Investing in Social Change The Benevolent Society Experience
  • 2. Introduction • The Benevolent Society (TBS) along with our partners (CBA and Westpac) have developed a Social Benefit Bond which we are currently marketing to investors. • Craig Parker of Westpac has already talked about the key financial and investment parameters and so I will focus on the service and sector outcomes from this important initiative. • This presentation covers the following: • TBS history in social finance and why we tendered to undertake a Social Benefit Bond • The OOHC issue and early intervention • Service design and the role of the Social Benefit Bond • Logistics • Sector implications
  • 3. TBS History in Social Finance • As Australia’s first charity TBS has a long history of social innovation: • In the early days of the colony TBS campaigned against a mentality that poverty was “deserved” • Campaigned for old age pension • Founded the first maternity hospital that became Royal Women’s Hospital in Paddington • More recent initiatives have included: • Social Leadership Australia • SVA • GoodStart
  • 4. TBS History in Social Finance • Proceeds from sale of hospital partitioned into an endowment under separate governance model from day to day operations • Investment in GoodStart • Testimony to Senate Inquiry into financing not-for-profit sector • Joint advocacy with Chris O’Brien Lifehouse on tax incentives for financing social infrastructure • Creation of new social enterprises, Taste Food Tours, Family Health and Mother Baby Hub and our largest and most successful social enterprise Social Leadership Australia • Investment in SVA Social Benefit Bond
  • 5. Out of Home Care and Social Benefit Bonds • I am sure no one in this room thinks NSW Out of Home Care numbers are ok • 18,000 children in 2012 up from 12,700 in 2007 • Equivalent to 1.1% of all children living in NSW • BCG estimate of cost per child $66,000 p.a. (+ impact on child) • We estimate approximately 3% of families eligible for intensive family preservation services receive them • The Benevolent Society’s mantra, and I am sure many of you have seen and heard our CEO Anne Hollonds discuss this is we need more investment in prevention and early intervention • Social Benefit Bonds will allow us to provide intensive family preservation services to over 300 additional families with the aim of reducing entries into OOHC • However, we also recognise this is not the earliest we could work with these families – our wider hope is more finance for earlier and earlier intervention
  • 6. Resilient Families Service • Working with over 300 families over a 5 year period • Mix of existing and new practice and service models based on evidence informed practice – for example Homebuilders© in US and our own Resilience Practice Framework • Service will involve intensive period followed by a “step down” support period • Key advantages • Outcomes not inputs measured • Evidence of impact over 5 year period (data access) • Control over service design – number and quality of staff, service provided to families • Ability to re-engage with families who have completed service • Ability to work with Government to refine service design
  • 7. Logistical Challenges • Measurement framework and government savings: • timeframes (can’t be too long) • which Government? (who funds if savings across different levels) • cohort selection (ethics, appropriate matching) • Structural challenges • legal • finance • investors and marketing • Capacity • Issuer credit rating • Managing business as usual • Economic risk to provider (indemnities, co-investment)
  • 8. Sector Implications • Social Benefit Bonds one type of social finance – not suitable for all • Ability of smaller and medium size players to participate • Bonds vs Pay for Performance contracts • Size of investor market / role of intermediaries
  • 9. Conclusion “It ain’t easy but it’s worth it” Through our Social Benefit Bonds we want • To deliver high quality services to families • Create a new source of funding • Prove the value of investment in prevention • Allow Government’s to fund new services within fiscal constraints

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