One of the initiatives of SPC has been to help establish a research institute within the Melbourne College of Divinity, the Yarra Institute for Religion and Social Policy. It aims to draw on the deep scholarly resources in church groups and the community more broadly, and to explore contemporary social issues from an ethical point of view.

The Memorandum of Understanding between Yarra Theological Union and the Yarra Institute for Religion and Social Policy was signed on 26 November 2008.

The Yarra Institute for Religion and Social Policy is sited in the new graduate centre at  the Yarra Theological Union at Box Hill, one of the Recognised Teaching Instiutitons within the Melbourne College of Divinity.The establishment committee is currently developing its governance structure, establishing research priorities, and building networks of collaboration. Since the MCD is part of the national university system and has Donor Gift Recipient (DGR) status, the Institute is eligible for tax deductibility.

Members of various church groups, but particularly from the Anglican, Catholic and Uniting Churches, have been involved in the founding of the Yarra Institute. The Institute Board members are well known scholars and include Rev Dr Stephen Ames (chair), Dr Wes Campbell, Drs Therese and Jim D'Orsa, Dr Rowan Ireland, Dr Robyn Reynolds OLSH and Dr Paul Rule. Dr Bruce Duncan CSsR has been appointed as Director.

Though the Yarra Institute springs from the Christian miliieu of the Melbourne College of Divinity, it seeks to explore and promote relationships with other religious groups, including with the great non-Christian religions, especially from the aspect of social ethics and improving peaceful living conditions throughout the world.