Austrian SIBs launched – hooray! Enjoy your weekend.
First Social Impact Bonds Launched In Austria
The Changer
Juvat announced the launch of the first SIBs in Austria. The Bond will fund projects that contribute to the economic and social empowerment of women affected by domestic violence.
One year ago, juvat kicked off the first pilot-project in Germany and the Austrian government promised to do more for sustainable, achievement-orientated social impact funding. In September 2015, the Austrian Ministry of Social Affairs launched its own pilot project.
What does that mean for the sector and social impact? What even are these ominous bonds about? We took a first brief look at the idea.
Why This Preschool Just Wrote Goldman Sachs A Check
Ben Walsh – Huffington Post
Goldman Sachs is getting a $267,000 check from an unlikely source: a United Way of Salt Lake public preschool program.
The payment is the initial return on an $7 million investment the bank, along with the hotel heir and philanthropist J.B. Pritzker, made in 2013. The funding is structured as a loan known as a social impact bond, where private investors put money to public programs with clear, measurable goals. Private investors do not get paid back unless programs meet certain criteria.
If the program continues its performance, the investors will receive 11 more annual payments, until their full investment, plus interest, is returned.
This is the first time in the U.S. that a social impact bond is returning money to investors.
Social Impact Bonds In Primary Care: Can They Work In Australia?
Susan Killion – Croakey
In the talent quest for innovative ways of funding health care, a relatively recent entrant is the social impact bond. Social impact bonds have enjoyed the spotlight in Australia of late, after their early success in the Newpin SBB pilot program, an initiative to return children in out-of-home-care to their families.
At the recent Power to Persuade symposium in Canberra, some of those involved in Newpin noted its suitability to this model of funding, but expressed reservations about the applicability of social impact bonds for funding a wide range of social services.