Big name backers for new Congressional Bill to promote SIBs alongside some analysis of SIB advantages… Greetings from Berlin, and happy reading:
Bill To Promote Social-Impact Bonds Has Support In High Places
Nicole Wallace – Philanthropy
Republican Sen. Orrin Hatch of Utah and Democratic Sen. Michael Bennet of Colorado are trying again to advance legislation that would appropriate $300 million for state and local social-impact bonds over 10 years.
Although similar legislation stalled in the previous session of Congress, Mr. Hatch now has more clout to push the bill; he became chairman of the Finance Committee when the Republicans took control of the Senate earlier this year.
Sometimes referred to as pay-for-success contracts, social-impact bonds are designed to help government shift from reimbursing nonprofits for the number of people they serve to paying for measurable results. The idea has gained traction quickly, but some critics argue that the potential benefits have been overstated.
Can Impact Bonds Improve Service Delivery?
Tamar Manuelyan Atinc, Emily Gustafsson-Wright & Sophie Gardiner – Brookings
In mid-March, the United Kingdom launched seven new social impact bonds (SIB), adding to the momentum that the field has witnessed in the last few years. As the number of SIBs around the world has grown to 45, they have become more diverse both in terms of countries and social issues targeted. In the most mature SIBs market, the U.K., impacts funds have even grown to cover multiple deals instead of just individual transactions.
Here at the Center for Universal Education, our interest is specifically in exploring the potential for SIBs to be applied toward early childhood development (ECD) interventions, but potential ECD transactions have to be informed and grounded in an understanding of both the challenges and enabling factors in taking SIBs to the developing world. The full day of discussions on impact bonds that we organized at the recent LEGO Idea conference for some 75 participants interested and involved in the field helped crystallize some of the potential benefits and the needed adaptations.