SVA believes that major bottlenecks currently exist in the social sector which are preventing the achievement of effective social change. We also believe that lifting education and employment participation levels is the most effective foundation for achieving sustainable, broad based and breakthrough change in disadvantaged communities.
Sector wide failings exist and are barriers to the achievement of social change
Limited access to capital
It is SVA’s belief that social capital markets are inadequate to support a critical sector of Australian society. There is limited funding available to the social sector to help grow proven programs, particularly to support the building of quality organisations through provision of appropriate administration and capacity funding.
With traditional avenues for capital raising not available to social sector organisations, the Australian community needs to begin to apply commercial thinking to this problem and create a new kind of capital market to meet this desperate need. New social investment models are needed such as the one applied to the development of the GoodStart Childcare syndicate, if we are to improve the efficiency and volume of capital flow to the sector.
Restricted access to talent
Non-profit organisations often can’t access the kind of strategic support and big ideas that comes through the input of a range of talented individuals, from all walks of life. SVA has observed that one of the biggest challenges facing non-profit organisations is creating a useful, effective and productive board.
SVA believes that a significant barrier to the creation of real, enduring social change are the difficulties faced by non-profit organisations in attracting talent. And this situation is only exacerbated by the resistance across the community to work together on cross-collaborative approaches, which draw on each sector’s unique strengths and capabilities.
Inadequate evidence of what works
Core to SVA’s approach has always been a commitment to conducting rigorous evaluation and providing insightful reporting to articulate the results of our work. However, there is an inconsistent approach to measurement and accountability within the sector and knowledge and learning across the sector is generally poorly captured and shared.
The sector needs to develop a strong evidence base available for use – whether that be in broader public policy design, the development of new programs, or for those social services delivery agencies at the coalface, who are looking to increase their impact.
The foundation for social change is lifting education and employment levels
Education and employment are synergistic: research shows that unemployment rates become progressively lower as educational attainment levels increase. Conversely, intergenerational educational attainment progressively increases as employment levels increase, since employed parents provide better support to their children’s educational career.
The cost to society of long-term unemployment goes well beyond welfare payments and forgone taxation. At a personal level, without economic participation, the capacity for an individual to achieve strong social connections and a sense of personal significance is severely compromised. At a social level, economic participation is fundamental to creating the social glue lacking in the pockets of disadvantage in Australia and thus to mitigating the social, economic and personal costs of unemployment.
Economic inactivity is of course multi-dimensional and can be due to individual, family, institutional, intergenerational, cyclical or structural factors, but employment opportunities are unquestionably heavily influenced by educational background. With approximately 850,000 children currently living in disadvantaged communities, it is critical to provide better support for these young Australians to stay at school.
For SVA, it is clear that the provision of educational and employment pathways is creating a way out for those trapped in disadvantage.