Newpin Social Benefit Bond
The Newpin bond
Newpin is an intensive program delivered by Uniting that helps parents build positive relationships with their children and break the destructive cycle of family relationships that lead to abuse and neglect. It has a solid evidence base and track record of successfully restoring children in out-of-home care to their families.
A social benefit bond was jointly developed by Uniting, Social Ventures Australia (SVA), NSW Treasury and the NSW Department of Family and Communities (FACS) to fund an expansion of the Newpin program in NSW.
SVA and Uniting raised $7 million from investors for the bond. Uniting is using this finance to deliver the program from four existing centres and open new centres over the life of the seven year bond.
FACS will refer clients in need of support that could benefit from the program. More information on the structure and details of the bond can be found in the Newpin information memorandum.
The bond’s key performance indicator is the restoration rate of children who enter the program. This rate is the proportion of children referred to the Newpin program that are returned from out-of-home care to their families. Returns to investors are determined by this rate.
The Newpin bond targets a financial return of 10-12 per cent per annum. In the four years to 30 June 2017, Newpin had successfully restored 203 children to their families and supported another 55 families to prevent their children from entering out-of-home care. The cumulative restoration rate is 63 per cent over four years compared to 19 per cent for similar families that were not in the program. In 2017, this delivered a 13.16 per cent return to investors.
All family restorations are independently decided by the NSW Children’s Court. Neither Uniting nor investors make these decisions.
For more information on the Newpin bond, please contact:
Social Ventures Australia (investment information)
+61 2 8004 6729
+61 2 9407 3228