PLY: An interesting ‘test’ from the Brookings Institute lines up alongside news of programmes in Adelaide, South Australia. Have a great weekend and enjoy your daily dose of Social Impact Bonds:
Putting The 10 Common Claims About Impact Bonds To The Test
Sophie Gardiner & Emily Gustafsson-Wright – Brookings
Social impact bonds (SIBs) are one of a number of new “Payment by Results” financing mechanisms available for social services. In a SIB, private investors provide upfront capital for a social service, and government pays investors based on the outcomes of the service. If the intervention does not achieve outcomes, the government does not pay investors at all. The provision of upfront capital differentiates SIBs from other Payment by Results contracts.
Development Impact Bonds (DIBs) are a variation of SIBs, where the outcome funder is a third party, such as a foundation or development assistance agency, rather than the government. To date, 47 SIBs and one DIB have been implemented in the sectors of social welfare (21), employment (17), criminal recidivism (4), education (4), and health (2).
How do SIBs stack up?
In a recent Brookings study, drawing from interviews with stakeholders in each of the 38 SIBs contracted as of March 1, 2015, we evaluate 10 common claims of the impact bond literature to date, so far made up of published thought-pieces and interview-based reports.
New Bonds Program To Bond With Needy
PS News
A trial of funding two homelessness programs through the issue of Social Impact Bonds has been announced by the Minister for Health, Jack Snelling.
Mr Snelling said negotiations were being held with the Hutt Street Centre, in partnership with Common Ground Adelaide, to launch the trial.
According to Mr Snelling, Social Impact Bonds are a new way for Governments to work with both the private and the not-for-profit sectors to deliver services that support vulnerable people.
“The private sector invests in the programs, with the Government providing a return to investors based on the initiative’s outcome,” Mr Snelling said.