Boosting our vital voluntary sector

Speaking ahead of this evening's SCVO reception in the Scottish Parliament, where she will address those attending, Ruth Davidson, Scottish Conservative MSP for Glasgow, said:

"I am privileged to be speaking at this event. Voluntary sector organisations are vital cogs in our communities, offering a wealth of expertise and experience on some of the most pressing social issues. Scottish Conservatives want to see them more involved in the fabric of social life.

"Scotland has a proud and long-standing charitable tradition and we are convinced that charities and social enterprises should play a major part in our civic renewal. Many of them have strong local roots and specialist knowledge and may be best placed to deliver services.

"This is why we want to consult on introducing a 'right to bid' for the voluntary sector. Scottish Conservatives will encourage the use of multi-year funding deals for the voluntary sector, and require all public bodies to report what proportion of their funding is provided on such a basis.

"To encourage additional investment in the voluntary sector through private investors, we also want to pilot Social Impact Bonds. Payments will only be made under SIBs where programmes have been successful – this is payment by results.

"We are determined to give Scotland's vital third sector the boost it richly deserves."

"Social Impact Bonds are an innovative way of attracting new investment around such outcomes-based contracts that benefit individuals and communities. Through a Social Impact Bond, private investment is used to pay for interventions, which are delivered by service providers with a proven track record. Financial returns to investors are made by the public sector on the basis of improved social outcomes. If outcomes do not improve, then investors do not recover their investment.

"Social Impact Bonds provide up front funding for prevention and early intervention services, and remove the risk that interventions do not deliver outcomes from the public sector. The public sector pays if (and only if) the intervention is successful. In this way, Social Impact Bonds enable a re-allocation of risk between the two sectors. "

http://www.socialfinance.org.uk/work/sibs

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