Two interesting articles today, the first deals with that very original of problems, dating back to well before any real vestige of the welfare state: family planning.

The second article is an intriguing one as alas I fear the problem (and I know this upsets many readers – well, actually fewer readers as they don’t want to hear the message and hence unsubscribe) is the other way around to that perceived by the legacy incumbents.

I sincerely fear a great deal of the legacy model of charity/NGO is no longer working as it ought and indeed firmly believe new PFS models such as SIB are the way forward. (There will also be more and other new models but the core disintermediation of the old NGO model is in progress). One model will not wipe out the other any more than television actually killed off radio. However, the simple truth is the world has moved forward in all manners of application of technology and thought – charity is not immune and the top down NGO model looks very very tired indeed, and is increasingly inefficient, as is traditional big government. I have seen it often before and alas the increasingly shrill comments coming from the self-proclaimed “front line” may hold sway with some reactionaries but I am sorry to say, I cannot believe it is the future…

…and given I pay to run this newsletter out of my own pocket, and have a healthy track record in predicting large slow moving oligopolies being sidelined or swept away, I feel obliged to champion the future even if the incumbents find it hard to stomach that their world is changing. Of course, I am sorry to see the old guard unable to stay subscribed to this free daily, SIB News. However their denial will not help either them ,or much more importantly, the stakeholders their NGO/Charities are supposed to help going forward. The future is bottom up community driven and priced efficiently so as not to waste resources.

On that note, I wish you happy reading and of course, I may be running this newsletter but it isn’t a totalitarian entity – all feedback is welcome whether you agree with me or not!

Social Impact Bonds: A New Way to Fund Family Planning?
Sunita Grote – Population Action

Health care costs are mounting, while at the same time, overseas development aid is dropping. How will developing country governments pay their medical bills? Can private investors come to the rescue?

While in the long-term, developing country governments must develop ways to meet their own obligations, the short-term barriers are overwhelming: limited fiscal space, low tax collection rates, legal and political barriers, and lack of political will. These governments need new, innovative approaches that attract resources from diverse sources in order to make ends meet.

Social impact bonds present a new partnership model that aim to raise capital for social issues while focusing on outcomes…

Social Investment ‘Faces Growing Resentment From Front-Line Charities’
David Ainsworth – Civil Society

Social investors face a “growing resentment” from front-line charities who think they are not in touch with the sector needs, the chief executive of one of the country’s largest social lenders said this week.

Jonathan Jenkins, chief executive of the Social Investment Business, which runs several social investment and grant funds for charities, told Civil Society News that many people working in charities feel disconnected from social investors.

“There is a real feeling that the social investment community isn’t listening to the people on the front line,” he said. “There’s a growing resentment, and a feeling that the social investment world is a London thing, with London-based intermediaries.

“There’s a feeling it’s a lot of people in London with clever ideas who are talking to each other.”

He said that social finance served an extremely useful purpose, particularly among organisations who were looking to deliver contracts, but that most people wanted “simple loan products they understand”.