Social Impact Bonds

/Tag: Social Impact Bonds

The Downside of Social Impact Bonds

When I started making The Invisible Heart, a documentary film about Social Impact Bonds (SIBs), the concept was relatively new. It was 2015 and there were roughly 45 SIBs globally. Observers had great hopes that this new financing model would revolutionize social service delivery. By making private investment available to social programs, SIBs were expected to bring

How Social Impact Bonds Can Confound Their Critics and Deliver Better Value For Government

Last month, the U.K. Government announced almost £200m of funding for 22 programmes backed by social impact bonds (SIBs), via the Life Chances Fund – providing an additional boost for this innovative impact investment approach. There have now been well over 100 SIBs commissioned around the world. Pioneered in 2012 by Social Finance as a

A Critical Reflection on Social Impact Bonds

At first glance, social impact bonds (SIBs) appear to be an ideology-free response to a range of social problems. As public resources are not always made available to adequately fund public and social services, SIBs leverage private investment to finance such services so that providers do not have to front the cost of delivery. Investors

More Governments Are Turning To Impact Bonds–But Do They Deliver?

Connecticut has a social impact bond (SIB) to help the kids of opioid-addicted parents. Massachusetts uses the same financial mechanism to help immigrants assimilate to the U.S. workforce. In Rajasthan, India, a coalition of banks and foundations is funding the world’s first “healthcare development impact bond,” hoping to reduce infant mortality. Social impact bonds are not bonds in

Pay-for-success Impact Bonds

The US government is again in the pay-for-success business. Slipped into the continuing resolution passed by Congress and signed by President Trump last week is $100 million for states and localities to use in programs that deliver higher rates of youth employment and high school graduation, and lower rates of asthma, diabetes, homelessness and recidivism among juvenile

Social Impact Bonds reach global mass: 108 projects launched in 24 countries

Nearly $400m raised to tackle social issues globally Nine countries launched first programs in 2017 US market sees largest market growth in 2016-7 First Social Impact Bond in Peterborough reduced reoffending by 9% and returned investor capital with a 3% annualized return in 2017 10 Social Impact Bonds have reported a full capital return following

Steering impact investing toward a 2020 tipping point

On the heels of the G20 meeting in Hamburg will come a summit of the Impact 16 in Chicago. That’s the number of countries, with the recent addition of Finland and Argentina, that have formed national advisory boards to accelerate the practice of impact investing. The awkwardly named Global Social Impact Investment Steering Group, or GSG, is

What Are Social Impact Bonds, and Should I Invest in Them?

Bonds are debt securities that allow the issuer to borrow money from the buyer, with set terms for key features like interest rate and length of the loan. Even though they share the same name, social impact bonds have many features that don't resemble traditional bonds at all. Instead, social impact bonds represent a way for investors

Pioneering Social Impact Bonds for chronically homeless

2016 was the first year for Denver’s innovative Social Impact Bonds Initiative, partnering the city with homeless service providers and private investors to help chronically homeless people get off the streets and stay off the streets. Denver is the ninth city in the U.S. to initiate social impact bonds (SIBs), but it is the first

Pay for Success: How “Impact Investing” Can Make Government Services Better

In 2011, Antony Bugg-Levine and Jed Emerson published a book called Impact Investing to explain a new way to think about capital. Traditionally, profit-making and charity have been held in opposing camps backed by the belief that for-profit organizations should seek financial return, while non-profit organizations should fund societal impact. However, impact investing has broken that