Another stunning trio of SIB stories today, it’s raining in Istanbul where I am today but wherever I look the outlook for SIBs appears sunny, have a great day…
Social Impact Bonds: What Lessons Should We Learn From Peterborough?
NCVO
Just over a month ago we got the first results from the Peterborough Social Impact Bond (SIB) – the flagship for the SIB programme. Since then there has been a lot of analysis about SIBs and its long term prospects; discussion that has generated far more heat than light.
SIBs are just one small part of the social investment landscape, but they could become a permanent fixture in public service delivery. So it is important that we learn the right lessons from the Peterborough SIB.
Three lessons for commissioners and the voluntary sector
1. The voluntary sector can deliver successful outcomes
2. Collaboration can be as effective as competition
3. Funding doesn’t need to be complicated
Early Adopters Of Social Bonds
Andrew Levitt – The MJ
Many social issues exist which are not being successfully addressed by current systems and provision, despite the continued high cost to government of social programmes.
Vulnerable individuals continue to experience poor outcomes in areas such as children’s care, education, unemployment and homelessness. Systemic change is needed to improve the way in which society tackles its deepest issues.
Over the last few years we have seen three major trends coming together to drive this systemic social change.
Firstly, governments are increasingly focused on how, they can deliver better outcomes for individuals with the resources they have available.
Secondly, impact-driven organisations, are increasingly looking to scale their services and improve service delivery through focusing on outcomes.
Thirdly, investors are increasingly seeking to align their values with their investments, and support systemic change.
The emergence of social impact bonds draws these trends together, offering the potential for all stakeholders to achieve their goals and, most importantly, for vulnerable individuals to see better outcomes.
Making Government Smarter
Alex Wirth – Huffington Post
Government can be an incredible solution, but it can also be an incredible hindrance. The Social Innovation Fund and Social Impact Bonds are two recent social financing innovations that demonstrate the power of government and the private sector to solve inefficiencies and societal challenges. State and local governments across the country would be wise to embrace these two social financing mechanisms.
The 2009 Edward M. Kennedy Serve America Act created the Social Innovation Fund. Administered by the Corporation for National and Community Service (the government agency that runs AmeriCorps), the Social Innovation Fund starts with $65.8 million a year that it awards in one to ten million-dollar increments to non-profit intermediary grantees. These organizations demonstrate their ability to select, validate, measure, and scale other non-profit organizations through a competitive application process.
Intermediary grantees are then required to match the government’s donation one for one. This doubles the pool of available money. The intermediary grantee is responsible for distributing at least 80 percent of the money in grants of at least $100,000 a year to effective non-profits. In order to receive a grant, the non-profit recipient commits to matching the funds one for one. When all is said and done, tax dollars are matched three to one.