The trickledown of knowledge over SIBs will take some time. Moreover it remains a significant problem, particularly in the UK, that so many analogue charity types are actively trying to kill the movement.
I hugely appreciate our UK readers who are the progressive types, sticking with SIB News but it is distressing to note how many have left this mailing list citing the fact that they just want to see SIBs dead in the water so they can get back to the magic money tree – which alas is as dead as a dodo, despite the claims of some stumping politicians…
Indeed, there needs to be more knowledge transfer – we’re happy to do our bit so encourage anybody confused to sign up, I continue to subsidise this newsletter free of charge from my own resources to aid expansion of the sector. That is a story we are eager to tell… Have a great weekend.
Stumped Over Social Impact Bonds?
Charity Today
This quarter’s Small Charity Index from the Foundation for Social Improvement (FSI) shows that over half of small charities have little or no knowledge of SIBs, and none of those surveyed of them feel that they are fully informed.
The FSI’s Small Charity Index shows that because of this, SIBs are being underutilised – less than one percent of small charities had received funding this way in the past year.
At the same time, one in 10 small charities reported a decrease in statutory income in the last quarter, and since June 2013 statutory income has decreased by six per cent in total. Yet, at the same time as a decline in funding, the research has highlighted that small charities are seeing an increase in demand of their services, up 60 per cent this quarter.
Institutional Investors Waiting To Make An Impact
David Rowley – Investment Magazine
Using institutional investor money as a quick way to fund projects that address a specific social problem is an idea gaining momentum. There is a steady stream of social impact bonds originating from central government in the UK and local government in the US, while Mike Baird’s affordable housing tender in New South Wales will be a test case for other state governments.
Many investors are eager to be involved, not least for storytelling with members who might otherwise be disengaged from their fund’s activities.
But, currently, the supply of such investments is much lower than demand.