What are Social Impact Bonds?
A Social Impact Bond, also known as Social Benefit Bond, is a form of finance designed to raise capital for programs that address areas of pressing social needs.
Private investors provide capital to a service provider to achieve improved social outcomes. If these outcomes are achieved, the cost savings to governments are then used to repay the upfront investment plus a dividend.
This financing model means:
- innovation to address pressing social issues
- a greater focus on outcomes rather than actions
- extra resources for preventative programs
- accountability and transparency for tax payers
About our Social Benefit Bond
More than 20,000 children in NSW are in Out-of-Home Care. The number of NSW children in foster or kinship care has more than doubled in a decade. Research shows children in foster care experience significantly poorer mental health and educational outcomes than children who had never been in care.
In October 2013, The Benevolent Society, in partnership with Westpac Banking Corporation and the Commonwealth Bank of Australia, launched a $10 million Social Benefit Bond.
The Bond funds Resilient Families: an intensive family support program keeping children with their families, where safe to do so, and out of foster care. The program will operate over a five year period with up to 400 families, who are expecting a child or have at least one child under six years old and who are at risk of serious harm.
Watch Lily’s Story
The Resilient Families program helps parents move onto a pathway where they feel empowered to keep their children safe and be the best parents they can.
Hear from our partners
The Social Benefit Bond is a unique collaboration between Government, social provider and the private sector to create social impact.
Highlights of our Investor Update
The 2015 Investor Update drew many attendees at the CBA Innovation Lab. It was an opportunity for participants to hear about the program and its results firsthand. Read the Baby Ray case study here.
If you are interested in learning more about our Social Impact Bond, please email us. Send us an email