NCVO has launched a free online resource that aims to shed light on social investment and the different financial models available to charities.
‘Social Investment Made Simple’ defines the different forms of social investment and helps voluntary and community organisations to understand what could work for their organisation. The guide showcases examples of charities of varying sizes that have used social investment to successfully grow their organisation and signposts users to further sources of support.
The tool has been developed jointly by NCVO and CAF Venturesome. ‘Social Investment Made Simple’ was put together in response to feedback the umbrella group received that there is a lack of clear and honest advice available to help organisations make informed decisions about what is right for them. The resource will be published on KnowHow NonProfit, which became part of NCVO in November, complementing the site’s existing fundraising resources.
Sir Stuart Etherington, chief executive of NCVO, said: “Social investment offers huge potential which could be crucial to the sector’s long-term financial sustainability. By demystifying what can be a complex issue, we hope more voluntary organisations will be able to take full advantage of what is a major growth area for the sector.”
Essex to trial social impact bonds
Elsewhere, Essex County Council has confirmed plans to progress with social impact bonds to finance family and community-based work with young people on the edge of care or custody.
In November 2010 there were 1,630 children in care in Essex, and today this figure stands at 1,535 – a reduction of 95 cases. By introducing social impact bonds, Essex hopes to continue this downward trend. The bonds will be used in the county to fund high-level programmes that support vulnerable children and help keep families together, particularly when there is a risk a child may come into local authority care.
An Essex County Council spokesman said whoever structures the social impact bond would decide which providers could tender to provide services. But there could well be opportunities for the voluntary sector.
Having completed a feasibility stage, Essex County Council has concluded that social impact bonds could be an appropriate funding mechanism to commission a number of Multi-Systemic Therapy (MST) teams to work across the county.
Multi-Systemic Therapy is an intensive treatment programme that focuses on families with complex needs - the programme works intensively with the whole family and all that surrounds it: homes, schools, neighbourhoods and friends, aiming to keep the family together and provide a range of support where needed.
In the first year the MST programme will work with 170 Essex children, with the aim of reducing care numbers by a further 90. The cost of investing in MST compared with the cost of a care placement is 4:1, so for every £1 spent on MST, Essex County Council saves £4.
