The TFCO model has been designed to be sustainable, and should deliver both cost neutrality and savings after an initial investment. On this basis a strong long term business case can be made for mainstream funding of TFCO programmes. You can read more about the cost effectiveness of TFCO here.
In recent years, there has been a drive by the government to share the cost of public sector services with other financial providers; charity, lottery, social finance or other private investment. This ethos of ‘mixed economy’ has brought new opportunities for alternative and additional funding for teams offering highly impactful social interventions
As they are evidence based, and deliver tangible improvements to social outcomes, TFCO programmes are particularly positive candidates for 'Social Impact Bonds' (SIBs), and have been implemented using this funding model, often in partnership with a third agency.
Social Impact Bonds (SIBs)
A SIB is a source of funding offered by charitable investors who are looking for social returns on their investments, rather than a profit. The SIB offers an investment opportunity for programmes or schemes that improve social outcomes and result in public sector savings. Only when these are savings are realised is repayment expected. These repayments can be fixed to (or below) the savings made, or financial incentives received, to ensure that the project yields positive benefits for all participants.
One of the advantages of a SIB is that ‘intermediaries’ will lead and facilitate direct liaison and contracting between the investors, commissioners and providers. Companies such as Social Finance UK
or Bridges Fund Management
act on behalf of their investors to develop the payment-by-results contracts, design payment structures, manage impact measurement and performance management to maximize the success on any investment. Given that returns are entirely dependent on outcomes it is in the best interest of the intermediaries to put every effort in to ensure programmes and schemes succeed.
Achieving for Children
is another social enterprise company that delivers a full range of children’s services.
For more information about SIBs and how to find investment through SIBs please follow the links below:
Please visit Funding Centra
l for a range of information about grants, contracts and loans.
Big Lottery Fund
Every year Big Lottery Fund distributes millions of pounds of National Lottery funds to charities and community projects around the UK. Their website has a wealth of information about what funding opportunities are available, guidance about how to apply for funding and examples of current programmes being funded.
For further information please visit the Big Lottery Fund website
Life Chances Fund
The Life Chances Fund (LCF) is an £80m fund, committed by central government to help people in society who face the most significant barriers to leading happy and productive lives. It will provide top up contributions to outcomes-based contracts involving social investment (Social impact Bonds). These contracts must be locally commissioned and aim to tackle complex social problems.
For further information please visit the Life Chances Fund website
Children and Young People Now
This is an online magazine that covers news and related articles about good practice and research across many areas such as Social Care, Youth Justice, Law, Housing, Education and Health. They have a register of funding opportunities in England which you can find by clicking here
If you would like further information, or would like to discuss a funding model with us, please feel free to contact us.