Organisational readiness
When considering an SII, organisations should assess whether they are ready to participate in an outcome‑based partnership. Consider if your organisation is able to:
- deliver and continue to improve the program to achieve agreed outcomes
- define, measure and report on outcomes, or invest in the skills, frameworks and systems to do so
- manage the financial risk of an outcome-based contract (and if the option of partnering with investors or philanthropy to share this risk is suitable).
- foster collaborative cross-sector partnerships.
Program suitability
Organisations also should consider if their program is suitable for delivery as an SII. The questions below can help assess the suitability.
1
Address a complex social issue for a defined focus cohort
- Does your program aim to address a complex social issue? Is there a clear link between the problem you are addressing, the program activities and the outcomes you expect to see?
- Does your program demonstrate additionality, such as meeting unmet needs in your community?
- Does your program have a clearly defined focus cohort, who can be identified through objective eligibility criteria?
- Is there a clear referral pathway for how participants will connect with your program?
2
Have outcomes that can be measured robustly
- Does your program have measurable outcome metrics? While the long-term impact of a program is often observed far into the future, outcome-based programs need to define outcome metrics that are objective, reliable, collectable in the short to medium term.
- Are there methods and datasets available for selecting participants and measuring outcomes in a transparent, objective and repeatable way?
- Can a baseline be established?
3
Provide value for money for NSW residents and government
- Is your program focused on early intervention and/or prevention?
- Will achieving the outcomes deliver measurable benefits to NSW Government in terms of savings (reduced or avoided costs).
- Consider whether the benefits based on the outcomes delivered covers set-up costs, cost of delivering the proposed services, transaction costs and any return to investors (if applicable).
4
Establish an evidence base to better understand how to address social issues
- Is your program testing a new approach or service model in NSW, or implementing an established model for a different cohort?
- Is your program based on existing research and knowledge grounded in the needs of the local community.
- Will program outcomes and insights contribute to an evidence-base to improve services and inform policy reform?
If your program and organisation is suitable and ready to participate in a social impact investment, find out more about how to develop a SII proposal.