Two good upbeat messages today, encouraging discussions of PFS and SIB model…

The Unappreciated Success Of The Peterborough Social Impact Bond
Social Investment Consultancy

It was announced last month that a significant portion of the investment lined up for the Peterborough social impact bond, to finance the mentoring and support of short-term release offenders, will no longer be used. About half the cash will remain in the bond and pay out on performance as planned, while the other half will never be called on.

The government has introduced a national mentoring and support programme for short-term prisoners, which is close enough to the nature of the intervention the bond is financing, to make it unfair to expect the bond to out-perform other services. Investors in the bond had their repayment tied to a comparative reduction in re-offending rates amongst ‘their’ released offenders – something that is now compromised by the government roll out.

For many, this will signify a let down for this flagship social impact bond and lead to a degree of caution from future investors. The ‘innovative’ form of finance did not complete as planned.

For me, this shows the sector fulfilling its role. The purpose of the Third Sector is not to operate mass-scale programming instead of government, but to translate services to local communities and, as in Peterborough, to innovate in order to inform government practice.

Impact Investing: Not Just For Billionaires
Esha Chhabra – Forbes

Foundations just make grants, correct? Not necessarily. Grants are becoming one option in a more complex menu of financial tools for the social sector.

Judith Rodin, president of Rockefeller Foundation, is taking risks with philanthropic capital, risks she says have the potential for bigger impact long term. These experiments come in different avatars: social impact bonds, impact investments, and crowdfunding – to name a few.

The coauthor of a new e-book, The Power of Impact Investing, with Margot Brandenburg, Rodin says that “impact investment” is not just for the 1%.