List all the funding sources that are required for the sustainability of this solution
Private Investment: Which could include a mix of Corporate Private Investors, Charitable Investments, Community Investment (societies trusts) Local Govt & Individual Micro Investors.
Demonstrate how your proposed solution has the capacity to graduate from dependence on public finance. What is the time frame?
The time frame measuring repeat offending in NZ is 12 & 24 months so it is at these points that our performance against benchmarks would be defined. The first set of Performance Bonds would be trialled from April 2012 - March 2014.
At this early stage of venture development we can only provide an indication based on our understanding of:
1) similar trials in the UK which suggest that given only a portion of the money saved by keeping people out of prison we can expand social impact and establish a high growth social enterprise.
2) Information available on adult offending and imprisonment
In NZ terms
Cost per prisoner per annum $90, 885
Average length of sentence 4 years
Average cost per person sentenced & imprisoned $363,540.
Re imprisonment rates:-
Within 12 months 27%
Within 24 months 36%
If there are 500 people released from NZ prisons statistics indicate re-imprisonment of 180 people within 24 months. 180 people equals a minimum quantifiable cost to community of < 65 million
If we can raise $2,750,000 and invest the majority of this capital in preventative and rehabilitative programmes that prevent 25 people from returning to prison then we reduce govt spending by $9,088,500.
If Govt. is willing to share savings on 50/50 basis then $4,544,250 would provide both ROI to investors as well as profit on which to build a self sustaining entity through which to support and expand social impact programmes.
The question here regards graduating from dependence on public finance, which I take to mean Public Sector/Govt finance?
This project is the first step towards Community Resilience vs Govt Dependence. It is a much needed option to the current status quo which is almost 100% reliant on Charity and Government Funding.
As a catalyst for action now, the Govt recently allowed for foreign corporate privatization of our prisons. While privatization may prove to help rehabilitate people it also removes accountability and responsibility for rehabilitation and reintegration even further from the local community? There is of course the potential to work together.
Demonstrate how your proposed solution will survive a potential loss of its largest private funding source
Without funding we can not expand social impact programmes, we can not initiate "by community for community" micro investment or develop this social investment model.
Without a large private funding body the current system remains. A few great organisations making a difference in peoples lives, unfortunately limited by the funding they can access from charity and government,awash in the rising tide of social problems.
Social Service providers will remain in competition with each other over a limited supply of funding. We propose instead a model that requires collaboration with access to funding on the basis of collective purpose and shared outcomes
Please tell us what kind of partnerships, if any, could be critical to the greater success and sustainability of your innovation
Government backing is critical in order to provide investment incentive & reward.
Private investment is critical in order to establish the investment vehicle and provide initial funding to social impact service providers.
Collaboration is fundamental.
Are there non-financial issues that could threaten the sustainability of your proposed solution?
Undoubtedly. Political, legal, social, cultural which is exactly why we work to research & plan development of this social enterprise.
As Aristotle says "...For the things we have to learn before we can do them, we learn by doing them..."
Please tell us if your proposed solution aims to scale up through a high growth sector, expand immediately to multiple sectors, and/or scale up geographically
We aim to trial the service here in Dunedin and when successful expand the funding/investment model throughout Aotearoa and to any other global communities that could benefit.
It is a model that can be applied as a public/private funding catalyst to address many different social & economic outcomes ~ from education, employment and health to aged care, environment and new enterprise.