Innovative ways to involve private investments to finance services of social interest

First SIB in Germany

The Eleven Augsburg project was launched in September 2013, becoming the first SIB project in Germany and even the first in the Continental Europe. The project was initiated by the Bavarian State Ministry of Labour, Social and Family Affairs and Integration together with Juvat gemeinnützige GmbH, a non-profit subsidiary of Benckiser Stiftung Zukunft. The project was based on the premise that the public sector pays the premium if predefined, empirically measurable objectives are achieved.

The pilot project targeted the disadvantaged, unemployed adolescents, who lacked vocational support as well as youth welfare services. This is the group that tends not to be or is no longer being reached by the offerings available from the German Federal Employment Agency, Job Centres or German Youth Welfare Offices, moreover, all previous supported measures were unable to reach its members. The project’s objective was to place a definite number of adolescents in apprenticeships or gainful employment, which would last for at least 9 months.

The four project partners responsible for the operational implementation performed specific programme modules from the areas of youth welfare, vocational support and career guidance services. Partners addressed over 100 adolescents and finally included 69 those willing to participate. 22 adolescents were ultimately placed in an apprenticeship program or employment situation with follow-up support services.

The neutral evaluator confirmed that the project reached all of its predefined objectives (it confirmed that at the end 20 participants fulfilled the criteria). Consequently, the financiaries (all non-profit organisations) are being repaid their funding plus a small amount of interest in the amount of 3% based on the complete duration of the pilot project (28 months).

Important job was done by Juvat, which acted as the intermediary. It negotiated and concluded the contractual agreement with the Bavarian State Ministry of Labor, Social and Family Affairs, and Integration recruited the investors, involved the project partners responsible for implementation, and jointly commissioned the evaluators with the public partner.

Since all financiers are non-profit organizations, the repaid funds will be used again for other charitable projects, this creating a circle of upfront funding.

All the key fugures and the names are described in the following document: