Grounds for optimism from the Brookings Institute while Australian road safety now in target for SIBs amongst our stories today, happy reading…
Have Social Impact Bonds Had An Impact?
Monica E. Oss – Open Minds
Over the past couple years, we have seen social impact bonds (SIB) go from the “new kid on the block” for health and human service funding, to a funding option that more and more organizations are utilizing.
If you aren’t yet familiar with the SIB concept, the basic model involves private investors making a loan to a provider organization to start and manage a specific program. A government agency then agrees to contract with that provider organization for the specific program – with a stipulation that payment will be made only if the organization meets agreed-upon performance requirements.
According to the Harvard Social Impact Bond Technical Assistance Lab, in 2015 there will be more than $200 million in pay-for-success contracts funded throughout the United States. One major funder of social impact bonds across the country has been The Social Innovation Fund, a program of the Corporation for National and Community Service. The Social Innovation Fund is designed to direct resources to non-profit, community-based organizations for programs that are focused on youth development, economic opportunities for the disadvantaged, and health care.
Brookings Institution: The Potential & Limitations Of Impact Bonds
Emily Gustafsson-Wright, Sophie Gardiner & Vidya Putcha – Policy Innovation Lab
Impact bonds bring together elements of these various strains of thinking and policy action into one instrument. Over the past five years, since the first social impact bond (SIB) was implemented, an exponential growth in the number of deals has occurred in the developed world. While we are still in the very early stages of this market with much remaining to see and learn, our examination of 38 existing deals provides grounds for cautious optimism.
Impact Investing Could Hold Key To Improved Road Safety
Carly Hammond – Impact Investing Australia
UK based charity FIA Foundation, Social Finance UK and Australian social innovation consultancy Impact Strategist have launched a new report calling for social impact investing to be used to help alleviate the growing problem of road accidents and the cost on public health.
The report argues that private sector financing through a road safety social impact bond framework could bring new funding sources and new rigour to transport investment.