Social impact bonds

Overview

Social impact bonds (SIBs) are a relatively new financing product that provide social sector organisations the working capital they need to help their beneficiaries and deliver value for money for the public sector, all while providing a return to investors.

Investors take the financial risk by providing working capital for social enterprises and charities who are leading on preventative approaches to social issues. Commissioners pay the social sector organisations contract revenue, who in turn repay the investors, only if the intervention is successful in delivering a pre-agreed set out of outcomes.

Numbers for Good is an approved Big Lottery Fund provider of social impact bond advisory support. We are one of only a handful of organisations to successfully structure, raise funding for and execute social impact bonds and we also provide performance management services through the life cycle of SIB contracts.

Our advisory work in connection with social impact bonds includes the following activities:

  • Developing social outcomes for a particular social intervention model
  • Estimating and validating commissioners’ cashable savings from a specific intervention
  • Financial modelling SIB cashflows in the run-up to commissioning
  • Engaging and negotiating heads of terms with commissioners and investors
  • Supporting commissioning and raising the capital investment required to allow the SIB projects to become fully operational
  • Performance management of SIBs once they are in operation

Whether you’re a social sector organisation, investor or public commissioner we can help you.

Email tim@numbersforgood.com to discuss how we can help you.

In Focus: Fusion Housing

Fusion Housing is a non-profit making charity working to help individuals in Kirklees who are experiencing housing related problems and need support with learning and employment.

Together we secured an investment of £940,000 from Bridges Ventures and Key Fund into a social impact bond supporting young homeless people. Helen Minett, director of Fusion said:

“I have been impressed with the quality of support and guidance we’ve received from Numbers for Good particularly in relation to our understanding of social investment. I am pleased and appreciate the performance management approach they take which is about pooling knowledge and experience and exploring lessons learnt. We would definitely work with Numbers for Good again.”

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