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Outcomes Funds in Europe

August 07, 2018

Policy Brief: Outcomes Funds in Europe

EVPA’s Policy Brief series aims at explaining recent policies and regulations that have implications for the VP/SI sector, outlining their functioning and their impact, and proposing the way forward.

In this brief, we explain what outcomes funds are, what are the potential benefits and challenges of these financing vehicles, and give some examples of Outcomes Funds set up in the UK, Italy and Portugal.

Outcome Funds Infographic Small Web

Structure of an Outcomes Fund

Webinar Recording

During the Policy webinar #13 on 20 June 2018, we discussed the challenges and opportunities of Outcomes Funds in Europe.

Outcomes Funds are innovative financing vehicles creating frameworks in which payments only occur if pre-agreed societal outcomes are achieved. These vehicles are receiving growing attention in the venture philanthropy and social investment ecosystem. This is because the frameworks in question changed the traditional approach where payments were made for outputs regardless of the final social impact. Instead, by focusing on positive social outcomes, outcomes-based funding interventions create a strong incentive for Social Purpose Organizations (SPOs) to achieve social goals while saving public expenditure.

The webinar tackled the topic from an EU perspective, and addressed national-based considerations:

Georgia Efremova (European Commission) gave an overview of the EU policy framework where outcomes-based financing initiatives might fit in the future, also in light of the newly launched InvestEU programme; Philippe Bernard-Treille (European Investment Fund) explained how Outcome Funds can complement Social Outcome Contracts to optimise public resources and boost social innovation; Jane Newman (Social Finance UK) illustrated the UK experience on the topic and the evolution from Social Impact Bonds to Outcomes Funds; finally, Filipe Almeida (Inovação Social Portugal) shared the lessons learned from establishing an Outcome Fund in Portugal.

The PowerPoint presentation of this webinar can be downloaded at the bottom of this page.

 

This article was written by

Matteo Mascolo Matteo Mascolo

Priscilla Boiardi Priscilla Boiardi

 

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