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