Jenkins Legal Services is passionate about the not-for-profit sector. This article explores something new and exciting affecting the sector: Social Benefit Bonds.
Social Benefit Bonds or Social Impact Investment is described by The Treasury of NSW as ‘an emerging approach to tackling social challenges that brings together capital and expertise from across the public, private and not-for-profit sectors.’
Two social benefit bonds were pioneered in 2013 by the NSW Government:
1. The Newpin Social Benefit Bond for UnitingCare Burnside is a collaboration with the NSW Government and private investors. The UnitingCare Newpin program is funded by private investors. UnitingCare is then paid by the government for achieving social outcomes. This then sees a return passed onto investors. The social outcomes in this case are successfully restoring children who were previously in out-of-home care to their families. Investors are able to see a financial and social return on their investment. $7m was successfully raised for this program in a short period of time.
2. The Benevolent Society Social Benefit Bond is a partnership with Westpac Banking Corporation, the Commonwealth Bank of Australia and the NSW Government worth $10m. The bond funds intensive family support aimed at keeping children (who would otherwise be placed in foster care) with their families. Research has shown that children placed in foster care experience poorer mental health and educational outcomes than those who can be kept with their families.
The government has released its 2016 Statement Of Opportunities which outlines the governments priority policy areas for Social Benefit Bonds.
Feedback from the Newpin and Benevolent Society’s Social Benefit Bonds will see the government investigating formal requests for other SBB proposals later this year.
Please contact our office on (02) 4929 2000 or office@jenkinslegal.com.au if you would like more information.