A positive start to Monday, SIBs in review:
Enterprise Releases New Issue Brief On Social Impact Bonds
John Griffith – Enterprise Community
Enterprise and the Accelerating Impact Investing Initiative (AI3) released an issue brief on Social Impact Bonds (SIBs), an innovative financial tool that harnesses private capital to support critical but underfunded public services.
Under a typical SIB contract, private investors provide upfront capital to fund a particular program (e.g., services for families at risk of becoming homeless). Those investors are paid back by the government with a financial return, only if predefined social outcomes are achieved (e.g., a reduction in families entering homeless shelters). Often the financial return to investors comes from the money saved through a reduction in government spending. If the program falls short, the investors would not recoup their upfront investment and incur losses.
A total of 11 SIB initiatives have been launched to date in the U.S., and there are dozens more contracts under development across the country covering a wide range of social issues. The issue brief released today takes a close look at two SIB initiatives currently underway, each with Enterprise’s support:
The Cuyahoga (Ohio) Partnering for Family Success Program, which is working to reduce the number of days in foster care by providing intensive case management services and access to family-appropriate housing to 135 homeless and housing insecure families.
The Denver Social Impact Bond Program, which is providing permanent supportive housing for 250 homeless individuals who frequently use the city’s emergency services, including police, jail, the courts and emergency rooms.