'Is Your Program Suitable for the Outcomes Fund?', SVA

This guide, developed by Social Ventures Australia (SVA), provides a framework for assessing whether a program is suitable for the Australian Government’s $100 million Outcomes Fund. The fund is designed to support outcomes-based contracts and social impact bonds (SIBs) for programs targeting vulnerable populations, including those experiencing homelessness, high employment barriers, or family vulnerabilities.

Key Features:

1. What is an Outcomes Fund?

• A funding pool allocated to programs that demonstrate measurable, impactful results. Payments are tied to the achievement of agreed outcomes, incentivising long-term, effective solutions.
• The fund simplifies contracting processes, fosters collaboration between stakeholders, and supports scalable, evidence-based programs.

2. Assessing program viability:

• Government considerations: programs must address high-cost social issues, demonstrate measurable savings, and align with government priorities.
• Delivery capability: organisations must show capacity to achieve targeted outcomes at a sustainable cost.
• Financial risk management: programs should evaluate their ability to bear financial risks or share them with investors via SIBs.

3. Practical guidance:

• Offers “rules of thumb” for organisations to self-assess their readiness, covering aspects like population identification, baseline cost analysis, and counterfactual development.
• Details considerations for outcome measurement, data sourcing, and fair attribution of results to programs.

4. Investor engagement:

• Programs relying on SIBs must ensure their structure appeals to investors by balancing financial returns, social impact, and manageable risks.

Why It Matters:
The Outcomes Fund represents an opportunity for organisations to secure funding for innovative, results-driven interventions. This guide helps service providers navigate the complexities of outcomes-based funding to maximise their program’s potential for success.