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'Outcomes Funds: Explained', Centre for Social Impact
This guide by CSI explains what an outcomes fund is - a financing mechanism that pools funding to support organisations addressing social issues, with payments tied to achieving specific measurable outcomes. It outlines the key characteristics, benefits, and development process of outcomes funds and includes links to other resources. These types of funding mechanisms are likely to become more common over the coming years and could potentially expand revenue options for social enterprises. Learning about them will support thinking and planning around collecting data and adopting evidence-based approaches.
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An outcomes fund is a funding approach focused on achieving social or environmental goals. Instead of just giving money upfront, payments are only made when specific, measurable results are achieved. Outcomes funds bring together government, nonprofits, and private investors to support social programs, and they help organisations focus on results and lasting impact.
The Australian government has invested $100 million into an Outcomes Fund, partnering with others to tackle social challenges like poverty. This model encourages collaboration, smarter use of resources, and clear accountability by paying for proven results instead of promises.
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'The State of Social Enterprise 2024', World Economic Forum
ReportsThis report shows social enterprises, led 50% by women, make up 3% of global businesses, generating $2 trillion revenue and 200 million jobs across 80+ countries.
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'Business for good: the size and economic contribution of social enterprise in Australia', Social Enterprise Australia
ReportsThis report by Social Enterprise Australia reveals that 12,033 social enterprises contribute $21.3 billion to Australia’s economy, employing over 206,000 people.
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