Social Investment FAQs

Created: October 29, 2024 at 9:55 PM | Updated: May 1, 2026 | By NZ Navigator Trust

Introduction

New Zealand's approach to social investment has raised quite a few interesting questions - covering everything from big-picture ideas to the nuts and bolts of ethics and analytics.

Available at most local libraries, the book ‘Social Investment: A New Zealand Policy Experiment’ (Boston & Gill, 2017) dives deep into this, explaining how the National government introduced the social investment model in 2011.

The original model was tweaked in 2015-2016 to broaden its scope to include all social services. It’s also worth noting that New Zealand’s take on social investment is a bit different from other countries, where the focus often includes other sectors like education.

Now, with the coalition government bringing the social investment approach back into the spotlight in 2024, the model has evolved again - along with all the debates and critiques that come with it.

This FAQ aims to give you a quick look at what’s happening in the social investment world today and why community organisations might want to keep an eye on it.

Quick links:

The perspective of the current coalition government

Driven by their desire to work in a different way to address social issues (improving the lives of New Zealanders), the coalition government are focused on social investment (applying rigorous and evidence-based investment practices to social services by using evaluation, data and outcome measurement to achieve better results).

Their social investment approach focuses on two key questions:

  1. Which segments of the population would most benefit from evidence-based investment in interventions that improve their lives and positively influence their long-term outcomes?
  2. What is the best way to go about achieving those long-term outcomes?

Social Investment Agency

The Social Investment Agency has been established to lead the implementation of social investment across government.

The functions of this agency include:

  • Setting standards for social investment practice
  • Advising on and facilitating the creation of data and an evidence infrastructure for social investment
  • Working with other agencies to apply the social investment approach
  • Leading an ongoing review of social sector spending to measure outcomes.

The Social Investment Agency's Strategic Intentions 2024/25 - 2028/29 report describes their role and function, the outcomes they aim to achieve, and how success will be measured.

Further reading on the coalition government position:

The Cabinet paper setting up the Social Investment Agency: Accelerating Social Investment – https://www.sia.govt.nz/assets/Document-Library/Accelerating-Social-Investment-Cabinet-Paper.pdf

The Social Investment Board - https://sia.govt.nz/social-investment-board

How does this affect your community organisation?

While this approach is being driven by government and increasingly integrated into government services, it is clearly something that community organisations need to pay attention to, now.

Why? Many of our organisations are totally or partially dependent on government funding. Recent examples of non-profits and community groups who have obtained funding by presenting evidence of a social investment return for their spending shows that all community organisations need to be thinking about how they can demonstrate the value of their own mahi.

So, what exactly is Social Investment and how can your organisation make the most of it? It’s important to understand the terminology:

  • Social Value is the social impact (outcomes, positive benefits, number of people involved, long term change, wellbeing) for the money invested.
  • Social Return on Investment describes the social value of the money invested in a programme and is the result of using data to compare the social value, number of people reached, and the cost of the programme.
  • Investing in better outcomes is not just about the money but also about being able to measure the improvements in individual’s lives, families and communities.

Why are funders interested in social investment?

Funders are keen to get the ‘best bang for their buck’ so that their funds go to programmes that reach the most people in the most effective way for the investment being made.

Some funders like to set clear, measurable goals, others are more flexible, but all like to know that the funds they disperse are improving outcomes for New Zealanders.

How do you measure your organisation’s impact?

And how can you apply this understanding to improve the social value of your mahi?

There are businesses that specialise in this field, but the cost is beyond many small and medium community organisations. 

Powerdigm led a project aiming to help the community sector get ahead of these changes and tell stories of social impact.

The project was funded by the JR McKenzie Trust, Todd Foundation, Bay Trust and the Department of Internal Affairs so all resources are open-source and free to the community sector.

Introducing Tūhono Impact

The social impact project has simplified and gathered together resources into a DIY toolkit designed specifically for community and small organisations.

The project output is Tūhono Impact.

The resources have been designed to enable organisations to clarify goals, share their impact, and demonstrate the social value of their mahi in a way that reflects their contribution to community wellbeing.

We are keeping an eye out for more resources that will support smaller organisations to demonstrate the social value of their mahi – watch this space!

We already use evaluative measures – why aren’t these enough?

The focus of social investment is broader, and potentially more complex, than these individual measures alone, focusing on an incremental process that examines multi-faceted components.

Good Social Investment includes:

  • An early intervention approach with clearly defined outcomes supported by an impact model
  • The best outcomes per dollar spent, supported by robust measurement
  • A long-term investment horizon
  • A bipartisan, apolitical approach
  • Targeted and community-led solutions focussed on outcomes
  • A three-dimensional investment focus where returns are measured in social outcomes or impact outcomes, as well as financial returns and risk.

Source: Ākina Foundation Social Investment white paper - Developing a successful social investment approach: Supercharging social investment in Aotearoa New Zealand

Further reading from a Community point of view:

Child Poverty Action Group (CPAG) - Social investment is not the solution to ending child poverty in Aotearoa

LEAD Centre for Not For Profit Governance & Leadership - The Emperor Has Some New Clothes

Ākina Foundation white paper - Developing a successful social investment approach: Supercharging social investment in Aotearoa New Zealand 

Whanau Ora Social Return on Investment (SROI) publications - https://whanauora.nz/publications/social-return-on-investment

What comes next?

Remember, the Social Investment Agency is having a direct influence on government funding arrangements for social services – this affects many of our community organisations now.

The National Party Social Investment Fund policy information page is clear about their intent to look closely at social sector funding:

“Initial funding would be provided by Government through the Budget process, and would be topped-up each year, including by redeploying funding from any Government initiatives that may have received disappointing social impact evaluations.”

The Social Investment Agency hosted a series of webinars giving information about the Social Investment Fund - giving an overview of what the fund will look like and next steps for those interested in applying. View the recordings here.

Budget announcement

In May, the government announced a new NZ$190 million ($112 million) social investment fund as part of its budget. Designed to support targeted initiatives, this fund is aimed at improving outcomes for vulnerable populations, with a focus on data-driven, transparent evaluation of impact.

Finance Minister Nicola Willis said that the fund will invest in 20 initiatives over the next year, with a tracking system built into the programmes to check its impacts.

Funded Demonstration Initiatives

The first three demonstration initiatives funded by the Social Investment Fund were announced around the budget:

  • Autism New Zealand’s early screening and intervention programme that provides services and support for family/whānau, caregivers and professionals.
  • Ka Puta Ka Ora Emerge Aotearoa’s evidence-based approach to tackling youth offending and truancy that will help at least 80 families each year to address youth offending and truancy.
  • The He Piringa Whare programme with Te Tihi o Ruahine an alliance of nine hapū, iwi, Māori organisations and providers that will support 130 families at a time with a wraparound service that delivers stable housing, education, training and employment, and other services.

Read more on these demonstration initiatives here.

Social Investment Fund pathways to funding

Pathway One: New Investment

Background information

SIA held webinars in June 2025 to give an overview of the fund in general - you can view the webinars here.

Late in August 2025 they held a webinar discussing Pathway One: New Investment (Round One) of the fund, and answered viewers questions. You can find the recording of this webinar on the SIA webinar page here.

SIA have a Social Investment Fund FAQs page that is regularly updated.

Investment Rounds

  • The second investment round is a two-step open competitive opportunity, similar to Round One. There are general FAQs about Round Two here.

Round Two of the Social Investment Fund Pathway One: New Investment opened on 9 February 2026 and closed at midday on on 10 March 2026. 

  • Shortlisted organisation RFP submissions close 22 May 2026
  • Community Feedback will be opened on the proposals being considered
  • Outcomes will be announced late June 2026

See all the details for Round Two here.

NOTE: A new priority cohort has been added to Round Two - Mothers who experience harm from substance use, and their children, from pregnancy up to age five.  

  • Round One of the Social Investment Fund Pathway One: New Investment was completed and announcements made in December 2025.

(See information about round one - the selected initiatives, key dates, and clarification about the priority cohorts (particular groups of people) and priority outcomes here.)

The list of selected initiatives in Pathway One (Round One):
  1. Te Hou Ora Whānau Services Limited: support for 120 children for individual and group sessions to reduce school drop-out rates and justice and care system involvement – Dunedin.
  2. Tākiri Mai te Ata Trust: support for counselling and trauma therapy for 200 young people in care, have parents in prison, or have been stood down from school – Lower Hutt and Upper Hutt.
  3. Te Puawaitanga ki Ōtautahi Charitable Trust: support for 200 children for health, safety and life skills – Christchurch and wider Canterbury.
  4. Ngāti Awa Social and Health Services Trust: support for 450 children, providing support for families dealing with historic trauma, and building specialist forensic nursing for child sexual abuse – Eastern Bay of Plenty.
  5. Barnardos New Zealand Incorporated: support for 100 for family mentoring, and parenting support to help children reach developmental milestones, such as early childhood education attendance – Māngere.
  6. Horowhenua New Zealand Trust: For more than 400 children for a behaviour change programme – Levin
  7. Kaikaranga Holding Ltd: support for 150 disabled and neurodiverse children who have been suspended or stood down from school. Services include tutoring, sensory tools and short-term behavioural guidance – Auckland.

Pathway Two: Contract Consolidation

Expressions of interest in the second of the Social Investment Fund pathways have now closed.

Pathway Two is focused on the consolidation of existing contracts held by social sector or community organisations with one or more government agencies into a single outcomes-based agreement, administered by the Social Investment Fund.

Consolidation will use existing funding in the first instance. Read more about the key dates and priority outcomes here. 

Pathway Two application outcomes will be announced between January and March 2026 and consolidated contracts will be in place in July 2026.

Pathway Three: Community Commissioning

Community commissioning is a model where decision-making authority for social service investment is devolved to local leaders, empowering communities to tailor solutions to their specific needs.

The Social Investment Agency is currently undertaking exploratory policy, legal, and design work to develop options for how community commissioning could work. They will engage with philanthropic organisations, iwi, and local collectives about the potential for community commissioning as part of this process. Expressions of interest are expected to happen in mid-2026. Get more information about Pathway Three here.

Pathway Four: Co-investment

This pathway creates a mechanism to enable partnerships with philanthropic organisations/other funders to co-invest in initiatives that amplify collective impact and drive innovation.

The Social Investment Agency is currently undertaking exploratory policy, legal, and design work to develop options for how co-investment could work. They will engage with philanthropic organisations, iwi, and local collectives about the potential for co-investment as part of this process and anticipate running an application process for co-investment proposals early in 2026.

Get more information about pathway four here.

A community perspective on the fund

In mid- August 2025, Hui E!, on behalf of the Community Constellation, hosted the Social Investment Agency for a deeper dive into social investment from a community perspective.

The kōrero was led by the ideas, examples and questions that participants sent through on registration. Facilitated by Katie Bruce and Atawhai Tibble, they were joined by Joe Fowler, Deputy Chief Executive Investment and Commissioning from the Social Investment Agency (SIA), who shared information about the new Social Investment Fund and its priorities.

The webinar recording can be viewed here.

We’ll be keeping a close eye on developments and tools in this space. This information sheet will be updated, and we’ll add new resources as things develop in the Social Investment space.

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