Bond partners Social Ventures Australia and UnitingCare Burnside welcome the announcement of the launch of Australia’s first Social Benefit Bond (SBB) by NSW Treasurer Mike Baird and Family and Communities Services Minister Pru Goward.
The Newpin Social Benefit Bond will create a new source of private investment funds for UnitingCare Burnside’s successful Newpin program, which aims to reduce the number of children placed in out-of-home care.
‘The expansion of Newpin will see more children live safely with their parents. There are currently more than 18,000 children in out-of-home care in New South Wales. Over the seven year duration of the Bond, it is expected that over 700 families will participate in the Newpin program and more than 400 children will be safely returned to their parents. We also expect to prevent about 60 children from entering foster care,’ Ms Little said.
‘We have been running the Newpin program in Western Sydney for over 10 years. It has a proven track record in helping parents to make the sustained changes needed so that children can be safely returned to their family or prevented from entering care,’ Ms Claerwen Little, Director, UnitingCare Children, Young People and Families said today.
‘Newpin provides long-term, intensive support to families with young children where children have been removed to foster care or face risks of harm.
‘This new funding will allow us to increase the number of centres from 4 to 10 in the areas of New South Wales where they are most needed,’ Ms Little said.
Social Benefit Bonds are an innovative new vehicle for private investors to provide up-front funding to help community organisations deliver improved social outcomes, with the objective of providing cost savings to government and returns to investors. The Newpin SBB is targeting a financial return of 10-12% per annum for investors over the seven year term of the bond. The level of return will be determined by the restoration rate of children who enter the program.
UnitingCare Burnside is working with Social Ventures Australia to secure private investment in the bond, which is expected to appeal to a diverse group of investors including some institutions, charitable trusts and foundations. It is also likely to appeal to individuals looking to invest in a way that provides financial returns as well as benefits to the Australian community.
‘SVA is delighted to be working with UnitingCare Burnside on this unique and innovative project. The Newpin Social Benefit Bond provides a new way for investors to direct their funding to achieve a great outcome for disadvantaged children and families, while still generating a competitive return. At the same time the service provider is assured of its funding and the NSW Government saves money. That’s an outstanding outcome for the community and people of New South Wales,’ said Ian Learmonth, Executive Director Social Finance at Social Ventures Australia.