Discussing the way forward in the UK and elsewhere, with worries about that consistent meme in all walks of improving living standards: government meddling. Have a good weekend…
Whither Social Impact Bonds?
Chih Hoong Sin – OPM
When the Peterborough Social Impact Bond (SIB) was launched in 2010, SIBs were heralded as the future of funding social change. This £5million SIB was designed to reduce reoffending among short-sentence male prisoners through an innovative model of levering private investment in social outcomes. In April 2014, however, the third and final cohort of the SIB was cancelled; leading to much hand-wringing by concerned onlookers. This ‘shut down risk’ has caused a number of interested parties to express concern that the development of SIBs may be stunted by Government ‘meddling’. Others were more despondent and claimed that the SIB “dream” may be over.
However, at around the same time as the cancellation of the final Peterborough SIB cohort, the Cabinet Office launched a £30million package to back SIBs to help disadvantaged young people into education, work or training. The number of SIBs in the UK continues to grow, and currently totals 31; more than the rest of the world combined. My trip to Japan earlier this year and a second visit from the Japanese delegation in September to learn from the UK SIB experience and to explore the future of SIBs indicates continued international interest. A variant of the Impact Bond model: the Development Impact Bond, has just been launched in Rajasthan, India; aimed at improving the retention and attainment of girls in schools.
Canada – First Community Bond Supports Future Innovation Works Building
Chris Montanini – The Londoner
With around $1 million left to raise before covering the cost of renovations to 201 King Street, the future home of Innovation Works, Pillar Non Profit Network introduced to supporters October 21 a social finance tool they believe will catch on in London’s not-for-profit sector.
A Community Bond, still relatively rare in Canada, is an interest-bearing loan that can only be issued by not-for-profit organizations or charities with a revenue generation model. The tool, more popular at the moment in social finance outside of Canada, is meant to provide not-for-profits a new way to fundraise and offer their supporters a new way to make a social impact while also receiving a modest return.
At a short event October 21, Pillar Non Profit pitched their Community Bond to supporters interested in helping finance their new social enterprise shared space, which is on schedule to open at 201 King Street in June 2016.