Outcomes funding, Homelessness, policy, Social Impact Bonds, Social Impact Investments
Victoria's first social impact bond: Journey to Social Inclusion
Sacred Heart Mission successfully negotiated Victoria’s first Social Impact Investment (outcomes-based contract) and Latitude Network supported them each step of the way.
SHM began life with the opening of the parish doors in Grey Street, St Kilda, to host meals for locals experiencing homelessness.
Nearly 40 years on and SHM is now a leader in providing intensive support for people right across the homelessness spectrum using engagement services (meals and welcoming physical spaces) and individualised service support as well as providing accommodation and support.
SHM’s program, Journey to Social Inclusion (J2SI), was born in the late-2000s out of the organisation’s concern that ‘business as usual’ was not allowing them to do the job they wanted to do - end homelessness for some of Melbourne’s most vulnerable people. As a result of the inherent silos in the social and health service systems, SHM decided to invest in building an evidence-based, outcomes-focused program for clients linking a ‘rapid-housing’ response with targeted help over the long-term (three years) - something the current service system found almost impossible to do.
After raising funds to run J2SI as a pilot as well as an expanded phase 2, SHM’s challenge was to continue to attract funding to both keep the program going but also to grow the program so that SHM could reach more of those it knew needed more targeted support.
In late 2016 the Victorian Department of Treasury and Finance issued a ‘Request for Proposal’ for its Social Impact Bond (SIB) Pilot Program. SHM saw this as an opportunity to both continue the growth and reach of J2SI while also testing an ‘outcomes-based funding’ approach for J2SI.
But this was going to be a competitive tender with perhaps up to 20 organisations interested in applying. How do we make SHM’s J2SI program stand out and then, if successful, negotiate something that had no precedent in Victoria?
THE ROLE LATITUDE NETWORK PLAYED / THE OUTCOME
Latitude Network acted as a specialist advisor, project manager and negotiator through both the tender application and contract negotiation stages. Russ Wood helped coordinate the existing expertise, talent and energy within SHM and the J2SI program, translating that into a negotiating approach that would help meet the Government’s outcomes, policy and financial agenda while also getting SHM the best outcome.
It was intense work - fortnightly negotiation meetings with Government (led by Treasury officials) meant weekly SHM team meetings to review the meeting agenda and do the work to prepare to negotiate and, importantly, problem-solve the many challenges.
Latitude Network not only helped keep the process on track - but also provided timely advice on the political and policy environment as well as the emerging outcomes-based funding environment.
THE TRANSFORMATION / IMPACT
J2SI became Victoria’s first ever SIB to be agreed when Victoria's Minister for Housing signed the contract with SHM in December 2017.
As a result of this, SHM is now able to provide intensive, tailored support over three years to 180 individuals experiencing chronic homelessness. Keep in touch to hear further updates as the project progresses.