For our third webinar in the ‘Diversifying Revenue Series’, Matrix on Board and Community 21 are delighted to host Wendy Haigh, Executive Director of Social Investment for new shareholder organisation and Australia’s oldest charity, the Benevolent Society.
Wendy will tell us the story of their experience the NSW State Government’s trial of Social Benefit Bonds. She will also talk about social investment and the exciting opportunities and challenges that ‘patient capital’ brings.
More widely known around the world as Social Impact Bonds, Social Benefit Bonds (SBBs) combine impact measurement and the economic value of successful programs with financial institutions, investors, government and community sector organisations.
Private and institutional investors provide long term funding for a social change program over a period of several years (which is why this is often called ‘patient capital’) with the expectation that the return on their investment will be both financial and social gains.
Impact measures monitored throughout the investment period capture the savings that success brings to government spending. The government then uses these saving to pay back to the investors, with the amount returned on investment dependent on the success of the program – in theory, everybody wins.
In reality, SBBs are very new in Australia and there is much to be learned. In 2013, the NSW Government commenced a trial of SBBs with two programs that are now in their second year. One of these programs is being run by the Community 21 shareholder, The Benevolent Society.