Fourth year results show The Benevolent Society Social Benefit Bond continues to support families to stay together
The Resilient Families Service, supported by Australia’s second Social Benefit Bond is successfully keeping vulnerable families together and the fourth year interim results are strong.
Actual returns to investors will be calculated at the end of the Bond (in 2018), and will be based on cumulative results over the full term of the investment. However, interim results to end June 2017 indicate that the service has achieved positive results and is keeping families together. Results show that 32 per cent fewer children entered care compared to a control group (i.e. children not receiving the Resilient Families service).
If returns to investors were paid based on performance to end June 2017, principal protected investors would receive a 7 per cent return on their investment, and equity investors would receive a 15 per cent return. While this is very positive, performance in the final year of the Bond may deliver different results when the final measures are taken.
The Benevolent Society Bond raised $10 million for the Resilient Families service, which is an intensive family preservation service that works with at-risk families to ensure they are kept safely together by avoiding entries into out-of-home care.
Resilient Families will help up to 400 at-risk families over five years. Each family receives support under the service for up to one year, with an initial intensive period where caseworkers build trusting relationships and address immediate crises in the family. The Benevolent Society Bond began in 2013, and was the second of its kind in Australia. The final results of the service and Bond will be available next year.
NSW is at the forefront of social impact investment in Australia, and is one of the world leaders in the sector. NSW has now developed six social impact investments:
- The Benevolent Society Social Benefit Bond
- The Newpin Social Benefit Bond – which aims to support 700 at-risk and vulnerable families to keep them together or be safely re-united with their children in out-of-home care
- The OnTRACC social impact investment – which aims to reduce reoffending and re-incarceration rates of 3,900 parolees
- The Silver Chain social impact investment working to support around 8,300 palliative care patients in the terminal phase of their life
- The Resolve Social Benefit Bond – which seeks to improve outcomes for around 500 mental health patients in Western NSW and Nepean Blue Mountains
- The Foyer51 Social Benefit Bond – which will seek to improve the housing stability, livelihoods, and independence of vulnerable young people, especially those leaving out-of-home care.
Together, these six investments aim to improve the lives of over 16,000 people across the State and are expected to represent approximately $200 million in outcomes-based contracts.
In addition, the Government recently closed a Request for Proposals for social impact investments to reduce youth unemployment. The NSW Government recognises the value of supporting our youth in education and through to employment and understands the long-term impact this transition has on their lives. This is why we committed $10 million towards this important initiative. Those proposals are now in the final stages of evaluation, and we hope to announce who will be entering a joint development phase shortly.