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'A Guide to Outcomes Contracting and Social Impact Bonds', SVA
This guide by Social Ventures Australia (SVA) shares insights from over a decade of outcomes-based contracting and social impact bonds (SIBs) in Australia. It offers practical advice, key lessons, and policy implications for organisations exploring these funding models.
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This guide by Social Ventures Australia (SVA) consolidates insights from over a decade of implementing social impact bonds (SIBs) and outcomes-based contracts in Australia. It provides an overview of the approach, key lessons, and practical advice for organisations considering these funding models.
Key Features:
- Outcomes-Based contracting:
- A funding approach that ties payments to measurable outcomes for a defined target group.
- Provides flexibility for service providers in resource allocation but demands strong governance and accountability for results.
- Social Impact Bonds (SIBs):
- A financing mechanism where investors provide upfront capital for social programs, repaid based on achieved outcomes.
- Shares financial risk between service providers, investors, and governments.
- Lessons learned:
- Success requires a clear understanding of target outcomes, reliable baseline data, and effective collaboration among stakeholders.
- Developing SIBs can be resource-intensive, but careful planning and streamlined processes can mitigate these challenges.
- Applications in Australia:
- Since the launch of the Newpin Social Benefit Bond in 2013, around two dozen outcomes contracts have been deployed.
- These have addressed a range of issues, including child welfare, homelessness, and employment.
- Broader Policy Implications:
- SIBs serve as testing grounds for innovative policy development, enabling governments to explore new service models with lower risk.
- Insights from SIBs can influence the evolution of broader service delivery frameworks.
Why It Matters:
This guide highlights how outcomes contracting and SIBs can drive innovation and accountability in the social sector. It provides a roadmap for organisations interested in leveraging these models to deliver impactful, evidence-based programs.
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