Grant Awarded: £15,000
Current Phase: Implementation
Llamau is a Welsh charity with a track record of innovative, creative and high-quality services working to end homelessness for young people and women, providing safe accommodation and support to enable people to move forward with their lives.
Projects run by third sector organisations often find it hard to finance their work in a sustainable manner, yet many of them generate (or have the potential to generate) significant savings for a range of public bodies.
Using the outcomes of one of their pre-existing projects Symud Ymlaen Moving Forward (SYMF) as a basis, Llamau proposed to undertake research and development to identify the savings made to government departments and make the case to re-invest them into the third sector.
Llamau explored the viability of a new kind of funding model to ensure that charities, whose work benefits the public sector, are funded more sustainably and fairly.
By re-investing the savings that charitable and third sector organisations generate for public services back into the sector, better, longer-term outcomes can be achieved for the people using the services. At the same time, the third sector gains funding security to continue delivering high-quality services.
Specifically, Llamau developed and tested this funding model with its Symud Ymlaen Moving Forward (SYMF) project which works with young people aged 16-18, not in education, employment or training, who are in or leaving care, and those known to the Youth Justice system.
Llamau’s research and development work was able to identify and quantify savings to the public sector, but routes to reclaiming these savings are not well understood. Working within a devolved administration brought up its own challenges since some of the savings generated to the public sector are non-devolved.
Llamau’s sustainable social investment model is built and was tested on the basis that cash savings can be realised and recycled through profit-sharing agreements or outcome-based contracts. In order to implement the project at scale, Llamau would need to secure an agreement with public sector organisations to return savings generated by Llamau’s work with young people.
Llamau produced a business case to move their project forward to Implementation phase, as part of Innovate to Save, and are now negotiating with public sector organisations to undertake a funded pilot of the model.
This case study is also available in Welsh.