Two stories developing core themes and news of a webinar – welcome to Monday’s SIB News:
Federal Participation In Innovative Public Health Financing: The Social Impact Bond Act
CDC
Social impact bonds (SIBs) are relatively new financing mechanisms that can be used to finance public health initiatives addressing issues such as asthma and infant mortality. Since 2010, when the world’s first SIB launched in the UK, several states and local governments in the UK have either launched SIBs or taken steps toward launching one.
A bill introduced on June 18, 2014 to the US House of Representatives with bipartisan support would assist the efforts of state, tribal, local, and territorial (STLT) governments exploring SIBs.3 That bill, House Bill 4885, would authorize the federal government to enter in SIB arrangements with STLT governments.
Is Social Impact Investing The Next Venture Capital?
Sir Ronald Cohen & Matt Bannick – Forbes
In just two years, VC investments went from virtually zero to more than $5 billion. And this capital helped unleash waves of innovation.
Now we are poised to see the same happen with impact investing.
And around the world, there are stories of how impact investments are meeting needs in areas as diverse as childhood education, clean technology, and financial services for the poor.
Last year, New York State, Social Finance and Bank of America Merrill Lynch teamed up to launch a “social impact bond” designed to cut New York City’s seemingly insoluble recidivism problem. The $13.5 million raised will extend the proven approach of the Center for Employment Opportunities. If the Center meets targets for reducing recidivism rates, investors stand to earn up to a 12.5% return.
Webinar: Social Impact Bonds/Pay For Success — Pros, Cons, Promises And Risks
NJJN
Social impact bonds (SIBs) are becoming increasingly popular throughout the U.S. This is largely due to President Obama’s FY 2015 budget, which provided funds for states to undertake “pay for success” programs. But are SIBs a viable option for funding juvenile justice reform work?
Join experts John Roman, Kyle McKay, and Kelly Walsh for a presentation on the risks and challenges that SIBs pose for funding reform work, as well as critical developments that SIBs must make to become a well-established funding option for large-scale social interventions in the juvenile justice arena.
Register here.