£1 invested in homeless people saves society £3.92
14 October 2009
A report published by Oxford Economics, a leading independent economic forecasting consultancy, has calculated that £1 invested in Crisis’ services for homeless people saves society an average of £3.92.
The research was conducted on behalf of Crisis, the national charity for single homeless people, to support Urban Investors, a groundbreaking fundraising product being launched today. Crisis is offering members of the public the opportunity to become ‘Urban Investors'. Investors will not get a financial return. Instead, they will be offered a social return on investment (SROI) directly linked to money they donated and this return can be tracked over time - a UK first.
Oxford Economics projected the SROI of Crisis' education, training and employment centres, Crisis Skylight, by measuring the money they save the taxpayer by eliminating the costs associated with homelessness - for example NHS, benefit and justice system costs - leaving this money to be better spent elsewhere. This saving was set against the cost of providing Crisis' services. The results show every £1 invested can reduce the burden on the tax payer by an average of £3.92.
Through Urban Investors, Crisis aims to raise funds to open five new Crisis Skylight centres across the UK in addition to its centres already running successfully in London and Newcastle.
The charity is publishing a prospectus similar to that published by a company when launching a share offering and is inviting donors to buy ‘Urban Investor Units' to support its ambitious expansion plans. The charity will report every six months to donors on the impact of their investment on homeless people and the wider communities where Crisis Skylight operates.
Leslie Morphy, Chief Executive of Crisis, said: "Many charities report back on the impact of their work. Urban Investors takes this to the next level. Investors can see exactly where their money is going and the value it is delivering. Investors can hold Crisis fully accountable. This marks a watershed in charitable giving."
Every year Crisis already helps thousands of people out of homelessness. Samuel Timberlake came to Crisis Skylight London in 2007. He said: "I suffered abuse as a child and soon found myself on the streets and involved with drugs and crime. I tried to rehabilitate myself, but couldn't. I was in and out of A&E and prison. When I came to Crisis I realised I could turn my life around with their help. I attended a range of classes including Maths and English. Now I'm studying a diploma in Counselling. I owe Crisis my life."
Richard Murley, Managing Director of Rothschild London, Co-Head of UK Investment Banking and member of the Urban Investors Advisory Board, said: "In these very difficult economic conditions, the need for the help and support provided by Crisis is particularly relevant. Almost everyone has lost out to some extent as a result of the recession but the need to give to charity is greater than ever. I am committed to helping others who have become homeless through no fault of their own and Urban Investors gives me the chance to do this."
Andy Logan, Senior Economist at Oxford Economics, said: "The cost of homelessness to society is enormous. The financial toll it takes on the NHS, the welfare and justice systems is significant. When Crisis takes someone off the streets, helps them through education, back into work and finds them a home, it doesn't just transform an individual's life - it makes sound financial sense for everyone. I think prospective investors will see this too."
Ends
INTERVIEWS are available with Leslie Morphy, Chief Executive of Crisis and Oxford Economics spokespeople.
For further media information, please contact Phil Power or Garry Lemon on 020 7426 3832/3880 or 07973 372 587or phil.power@crisis.org.uk or garry.lemon@crisis.org.uk
Notes to editors:
The launch of Urban Investors will take place at 8.30am - 10.00am, 14 October 2009, London Stock Exchange, 10 Paternoster Square, EC4M 7LS. To attend please contact Garry Lemon on 020 7426 3880 or garry.lemon@crisis.org.uk
Crisis is the national charity for single homeless people. We are dedicated to ending homelessness by delivering life-changing services and campaigning for change. Our innovative education, employment, housing and well-being services address individual needs and help homeless people to transform their lives. We measure our success and can demonstrate tangible results and value for money. We are determined campaigners, working to prevent people from becoming homeless and advocating solutions informed by research and our direct experience. We have ambitious plans for the future and are committed to help more people in more places across the UK. We know we won't end homelessness overnight or on our own. But we take a lead, collaborate with others and together make change happen.
Oxford Economics - formerly Oxford Economic Forecasting - was founded in 1981 to provide independent forecasting and analysis tailored to the needs of business economists and planners. It is now one of the world's leading providers of economic analysis, advice and models, with clients including international organizations (such as the IMF and World Bank); government departments in the US and Europe (including HM Treasury, BERR and DIUS in the UK); central banks around the world; as well as a large number of bluechip companies and charities in the US, Europe and the UK across the whole industrial spectrum. Oxford Economics employs 70 staff at its offices in Oxford, London, Belfast, Paris, New York, and Singapore as well as having close ties with leading academics in Oxford and other universities.
