Announcing the second year results for the bond, Treasurer Gladys Berejiklian said NSW was now leading the nation in the innovative area of Social Impact Investment.
“NSW is on the cutting edge when it comes to finding new ways of tackling social challenges,” Ms Berejiklian said.
“This model has allowed us to tap into new sources of funding so that we can deliver better social outcomes for those most at-risk in our community.”
A Social Benefit Bond is a financial instrument in which private investors provide upfront funding to help community organisations deliver improved social outcomes. Returns on investment depend on the social outcomes achieved.
The $7 million bond is funding UnitingCare Burnside’s New Parent and Infant Network (Newpin), which aims to reunite children with their families from out-of-home care and to prevent at-risk children from entering care by creating safe family environments.
So far, the program has successfully restored 66 children to their families and supported another 35 families to prevent their children from entering care. At the same time, the Newpin bond has delivered an 8.9 per cent return to investors in its second year.
Minister for Family and Community Services Brad Hazzard said Newpin is helping keep families together safely.
“Newpin has delivered a family restoration rate of almost 62 per cent, which is vastly higher than the 25 per cent under business as usual,” Minister Hazzard said.
“These results show that Newpin is offering parents the support they need to provide safe and loving environments for their children.”