social benefit bonds the benevolent society’s experience 29 october 2015
TRANSCRIPT
Social Benefit BondsThe Benevolent Society’s Experience29 October 2015
PresenterWendy HaighExecutive Director, Social Investment The Benevolent Society
200 years of social innovation1901
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 Centre
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
The need for change
• Welfare is the fastest growing sector of government spending
• The Federal welfare budget now exceeds $146b a year
• But with our ageing population we have fewer and fewer taxpayers
• And we still have enormous unmet social need
Business‘Doing good’ and
‘doing well’
GovernmentsDirect expenditure
to services that work
For-purpose organisations
Access to capital to scale impact
BETTER COMMUNITY OUTCOMES
An idea whose time has come
A Social Benefit Bondseeks 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
Adverse Childhood Experiences
ABUSE NEGLECT HOUSEHOLD DYSFUNCTION
Physical
Emotional
Sexual
Physical
Emotional
Mental Illness
Mother treated violently
Divorce
Incarcerated Relative
Substance Abuse
Related health outcomesBEHAVIOUR
PHYSICAL & MENTAL HEALTH
Lack of physical activity Smoking Alcoholism Drug use Missed work
Severe obesity Diabetes Depression Suicide attempts STDs
Heart disease Cancer Stroke COPD Broken bones
Lung cancer
x3ACE
score≥7Depression
x4.5ACE
score≥4
Suicidality
x12ACE
score≥4
• 143,000+ children receive child protection services nationally
• 73, 500+ NSW children (1 in 3) ‘known to child protection’
• 51,500+ children in foster care nationally (up from 15,000 in 1998)
• 18,950+ children in foster care in NSW
Yet …
• 97% of families who need intensive family support don’t get it
The need for change in child protection
Foster care is expensive
• Government spends $3.3bn per annum on child protection and foster care
• Each child in foster care costs the government on average $60,000 a year
• The cost ranges from $38,000 for ‘standard’ service to $90,000 for intensive, home-based foster care
• Some high-need foster children are costing up to $288,000 a year
• And a handful of children costing us $1.2 million a year
• Our program spends approximately $25,000 per family (not per annum)
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
• Measured against control group
Structure Overview
What are the returns?Reduction in child protection activity
Annual compounded return to Class 1
(capital protected)
Annual compounded return to Class 2 (capital exposed)
Below 5% Capital only Nil5% - <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%
Monitoring & Measuring Performance
Resilient Families
DatabaseBenevolent
External Evaluation
ARTD SBB Outcome Measures
FACSInternal EvaluationBenevolent
Independent CertifierDeloitte
Bond Outcome Measures
+ +17% x SARA17% x Helpline 66% x OOHC
Improvement Percentage
Performance Percentage
Theoretical investor returns: 5% for Class P and 8% for Class E
Our Outcomes & Indicators
Increasing safety Secure & stable Relationships
Improving coping/self regulation
Increasing self efficacy
Improving empathy
• Formal & informal social support • Community
connections • Concrete support
(i.e. food, housing & employment) • Life satisfaction &
personal wellbeing • Knowledge &
practice of appropriate discipline strategies
• Children’s social & emotional development
• Caregiver and child wellbeing
• Pro social behaviour & connections to peers
• Nurturing & attachment
• Family functioning
• Caregiver coping skills & psychological wellbeing • Children’s
emotional development • Children’s conduct
behaviours • Children’s
hyperactivity
• Caregiver general self efficacy
• Caregiver feels good about themselves as a parent
• Caregiver knows how to help their child/ren learn
• Age appropriate expectations of child development
• Children considerate of other people’s feelings • Children share
readily with other children • Children are kind to
younger children • Children often
volunteer to help others • Caregiver
understanding & knowledge of child development
50% 80%
of the care givers would manage on
their current savings in an emergency.
75% 87%
of the primary carers would know where to go if they needed help to find
a job, food or housing
54% 71%
of the care givers only experience
low levels of distress.
66% 86%
of the children were in normal range for overall social and
emotional difficulties
Internal Evaluation Indicators
Personal Wellbeing MeasuresBefore (at entry)After (at exit)
Future security
Feeling part of community
Personal relationships
Achieving in life
Standard of living
As a whole
82%
76%
76%
78%
72%
79%
60%
71%
67%
65%
59%
62%
Peter’s storySingle father with 3 kids aged 4, 8 and 12
Peter’s life turned around
Thinking about a SIB?
Does the subject area have appeal?
Based on best practice with positive evaluation results?
Will Government savings exceed cost of service?
Is measurement feasible and is reliable data available?
Design & Implementation Challenges
Sharing data across organisations
Understanding Government data
Implementing a trial in large organisations
Managing expectations – patient capital
Communicating complex information
Preventing quick savings from driving service decisions
Our social investment strategy
Q&A
