Close Search
 
MEDIA, JOBS & RESOURCES for the COMMON GOOD

The Challenge of SIBs for Social Enterprises


13 November 2012 at 1:25 pm
Staff Reporter
Social enterprises taking on the challenge of Social Investment Bonds (SIBs) will become more common in the future, according to a summary report from The Centre for Social Impact (CSI) at the recent Inaugural Social Finance Forum in Sydney.

Staff Reporter | 13 November 2012 at 1:25 pm


0 Comments


 Print
The Challenge of SIBs for Social Enterprises
13 November 2012 at 1:25 pm

Social enterprises taking on the challenge of Social Investment Bonds (SIBs) will become more common in the future, according to a summary report from The Centre for Social Impact (CSI) at the recent Inaugural Social Finance Forum in Sydney.

Peter Shergold, Chair of the NSW Social Investment Expert Advisory Group, predicted that SIBs would continue to be developed in Australia.

“I do believe that performance-based contracting by governments, which is itself increasing year by year, will increasingly take the form of Bonds,” he said.

“In the best of the possible worlds, this can be a win for the private sector, a win for the public sector, and a win for the community sector.”

But Graham Neal, Director, Business Development and Infrastructure, UnitingCare Children, Young People & Families said who is currently involved in a Social Impact Bond expressed caution for potential Not for Profits or social enterprises considering entering the Impact Bond market.

“The Social Benefit Bond is the most expensive and complicated way to do it,” he said.

“If there is a simpler way of funding your project, go for it!”

The Centre for Social Impact (CSI) says the way a SIB works is by a bond-issuing organisation raising capital from investors, based on a contract with government, to deliver improved social outcomes that generate future government costs savings. As well as repaying the principal, investors are paid a reward if the agreed outcomes are achieved.

More than 100 delegates attended the conference including international speakers to discuss the latest moves and developments in Social Investment Bonds in Australia and overseas.

The paper reported that David Hutchison, Chief Executive of UK organisation Social Finance observed that Australia is home to larger charities than is common in Britain, so some of the skills and experience offered by Social Finance (UK) to their charity partners may be available in-house in large Australian charities.

Jocelyn Bell, Project Manager Business Development, The Benevolent Society listed the challenges facing the SIB model as:

  • developing a financial product that does not yet exist in Australia,
  • to sell to a market of investors that does not yet exist
  • to fund a service that the market does not yet understand, where no independent experts exist to advise investors with returns based on evidence of service effectiveness that is limited to non-existent
  • paid on the basis of government savings that will be modelled rather than actual.

“We’ve got our work cut out for us," she said.

The full summary paper is available here.



PB Careers
Get your biweekly dose of news, opinion and analysis to keep you up to date with what’s happening and why it matters for you, sent every Tuesday and Thursday morning.

Got a story to share?

Got a news tip or article idea for Pro Bono News? Or perhaps you would like to write an article and join a growing community of sector leaders sharing their thoughts and analysis with Pro Bono News readers? Get in touch at news@probonoaustralia.com.au or download our contributor guidelines.


Your email address will not be published. Required fields are marked *



YOU MAY ALSO LIKE

Foundation Moves to Multi-Year Charity Support

Lina Caneva

Tuesday, 14th February 2017 at 3:55 pm

Professionalisation of Charities? Perhaps Not So Scary After All

Lisa Grinham

Tuesday, 6th September 2016 at 10:42 am

Social Enterprise Award Recognises Impact on Women

Ellie Cooper

Wednesday, 27th July 2016 at 9:10 am

Victoria Issues Green Bonds to Fund Enviro Projects

Lina Caneva

Thursday, 21st July 2016 at 2:31 pm

pba inverse logo
Subscribe Twitter Facebook
×

We need your help.

Since the outbreak of COVID-19, Pro Bono Australia has seen a devastating fall in advertising and less people posting on our job board, which is how we fund our free news service. You can show us that you value the work we do by making a contribution.

 Make a contribution 

You have Successfully Subscribed!