Measuring Outcomes The Benevolent Society’s experience with Social Benefit Bonds March 2016

Presenter Wendy Haigh Executive Director, Social Investment The Benevolent Society

200 years of social innovation 1901

One of Australia’s first maternity hospitals

1999

Established Social Leadership Australia

2002

Co-founded Social Ventures Australia

2010

Jointly founded Goodstart and acquired ABC Learning Centres

2009

Introduced the Apartments for Life concept to Australia

Australia’s first charity founded

1813

Led campaign for the world’s first old age pension

1896

2013

Social Benefit Bond launched

A Social Benefit Bond seeks to address a social problem that is very expensive for government

with a program that has measurable outcomes to demonstrate success

generates savings to government, from which investors receive a financial return

that is funded by upfront private investments

Child protection in Australia

The number of children in OOHC nationally has risen by 340% in the past 15 years.

More than 143,000 children received child protection services nationally in 2013-2014.

More than 70% of families needing intensive family

support don’t get it.

Indigenous children are 11 times more likely than other children to

be in OOHC.

Each child in foster care costs on average $60,000 per year.

Some high-need foster children cost up to $288,000 a year.

$3.3 billion spent nationally on child protection and OOHC services in 2013-2014.

Our intensive support program costs approx. $25,000 per family.

Cost of keeping children safe

Our Social Benefit Bond • $10 million raised

• In partnership with CBA, Westpac & NSW Government

• Funds a new program called ‘Resilient Families’

• Working with up to 400 ‘at-risk’ families over 5 years

• An intensive wraparound service that works to improve children’s safety

• Goal: to prevent children being removed into foster care

Structure Overview

How the Bond is measured

Monitoring framework

Bond Outcome Measures

+ + 17% x SARA 17% x Helpline 66% x OOHC

Improvement Percentage

Performance Percentage

Theoretical investor returns: 5% for Class P and 8% for Class E

Our result at 30 June 2015

What are the returns? Reduction in child protection activity

Annual compounded return to Class P

(capital protected)

Annual compounded return to Class E (capital exposed)

Below 5% Capital only Nil

5% - <15% Capital + 5% Capital + 8%

≥15% - <20% Capital + 6% Capital + 10.5%

≥20% - <25% Capital + 7% Capital + 15%

≥25% - <35% Capital + 8% Capital + 20%

≥35% - <40% Capital + 9% Capital + 25%

≥40% Capital + 10% Capital + 30%

Child & Family Outcomes & Indicators

Resilience Outcomes Families’ needs at entry and exit

Resilience Outcomes Families’ personal wellbeing index at entry and exit

Benefits of SIBs

Unlock new type of funding

Improve accountability

Improve evidence base

Harness innovation

Deliver benefits for us all

Q&A

Thank you

The Benevolent Society sbb@benevolent.org.au (02) 8262 3400 www.benevolent.org.au Impact Investing Australia www.impactinvestingaustralia.com Deloitte www.deloitte.com/au/

Further information