News from Santa Clara and a new web site in the UK…
State, Local Governments Try Creative Financing To Help Homeless
Teresa Wiltz – Sun Times
It’s what’s known as a pay-for-success project, which relies on outside investors — rather than taxpayers — to provide working capital to nonprofit service providers trying to tackle thorny social problems like homelessness, juvenile delinquency and mental illness.
The idea is to invest money and energy in programs that work — and to hold service providers accountable for meeting specific, measurable goals. In Santa Clara County, for example, where Alan lives, a group of investors including Google and the Sobrato Family Foundation put up $6.9 million to fund the 6-year project. To see a return on their investment, more than 80 percent of the formerly homeless have to maintain stable housing for at least a year. As goals are met, the county will make payments to investors, up to $8 million.
Such deals are complicated. And their approach is so new that only a handful of state and local governments have begun experimenting with them. But their numbers are increasing.
Big Society Capital Launches Prototype Social Finance Website
Third Sector
The social investment wholesaler Big Society Capital has launched a new website to provide easier access to information about social finance for charities and social enterprises.