Social investment could become a vital source of finance to fund programmes of work with children, young people and families over the next few years. But it is a complex field easily open to misunderstanding and myth. There are two basic facts to get straight. First, social investment is repayable finance. So it must not be regarded as a replacement for grants and donations.
Second, it requires service providers (such as children’s and youth charities) to achieve a social – as well as a financial – return, in the form of improved outcomes for the service recipients. In a growing number of arrangements, money is repaid to investors on the basis of reaching agreed benchmarks for these improved outcomes – which can be school attendance levels in children, for instance, or sustained employment for young people.
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