Why Social Impact Bonds?
Is your organisation ready for Social Impact Bonds?
Social Impact Bonds (SIBs) are a powerful new tool to align the interests of social organisations, governments and investors around proved social impact. While they are not suited to every program or need, they are an early example of the move to a social system based on measured outcomes and funded for performance. The process of developing a SIB application helps focus the mind on what outcomes can be proven, and what the underlying costs and risks are to delivering those outcomes. This is a valuable learning process even if an organisation is not successful in securing an SIB contract.
Latitude's view is that leading social organisations should be developing a strategy that links outcome measurement and performance, and generates programs suitable for outcomes-based funding over time.
Given the complexity and demands of a SIB, organisations need to be prepared before applying for this new source of funding.
Click the button below to learn more on preparing for Social Impact Bonds.
Example: Victoria's First Social Impact Bond - J2SI - Homelessness
SIB name: Journey to Social Inclusion
Location: Inner-Melbourne, Victoria
Policy area: Homelessness
Service Profile: Intensive case management + rapid housing
Cohort size served: Intervention group is 180 long-term, chronically-homeless individuals with complex needs and a long history of intensive service use.
Service provider: Sacred Heart Mission
SIB Structure: Special Purpose Vehicle
Size of investment: TBC (Capital-raising currently underway)
Intermediaries: Latitude Network (lead), NAB (capital-raising), Norton Rose Fullbright (Legal)
Independent Certifier: TBC
Evaluation methodology: Randomised control trial
Outcome payor: The State of Victoria
Outcomes that yield payments: (1) Increases in stable housing (the percentage of the cohort in stable housing) and (2) Reduction in hospital bed days
Timeframe: 3 year service delivery term per cohort, 4 year measurement period
Date announced: Implementation Agreement signed December 2017