A bumper day of news led by the Harvard endorsement of SIBs and some US support being provided…
The Washington Post
Six states are moving to develop so-called social impact bonds, marking a broad expansion of an experiment that taps private investors to fund capital-hungry social programs.
Connecticut, Illinois, New York, Ohio, South Carolina and Colorado won a competition initiated by Harvard University and the Rockefeller Foundation, which will provide them technical assistance with developing bond programs.
Gov. John Hickenlooper joined Denver Mayor Michael B. Hancock to announce today that Colorado and Denver were selected as one of six state and local governments to receive assistance to develop social impact bond (SIB) projects in the national Harvard Kennedy School SIB Lab competition, sponsored by The Rockefeller Foundation. The funding will help develop pay-for-success contracts for prevention-oriented social programs using the SIB model.
In the SIB model, governments partner with service providers and private sector investors to fund social programs. Investors are repaid only if and when improved social outcomes are achieved. SIBs have the potential to open new funding sources for prevention-oriented programs that deliver measurable social benefits and save taxpayer dollars in the process.
Harvard’s SIB Lab has announced the winners of a competition to receive technical assistance with developing social impact bond programs; an idea that has ‘traveled from concept to execution faster than any other social innovation in recent history.’
“Six states are moving to develop so-called social impact bonds, marking a broad expansion of an experiment that taps private investors to fund capital-hungry social programs,” reports Michael A. Fletcher. “Connecticut, Illinois, New York, Ohio, South Carolina and Colorado won a competition initiated by Harvard University and the Rockefeller Foundation, which will provide them technical assistance with developing bond programs.”
Also, press release here: State And Local Governments Receive Assistance To Launch Social Impact Bond Projects Across The Country
HOMELESSNESS is a complex social problem that societies often treat, but rarely fix.
Existing social services do little to remedy the underlying causes, and governments too often lack the resources and long-term commitment to invest in preventive approaches that could improve lives and reduce society’s burden in a lasting way.
And there are many similar problems, from chronic unemployment to juvenile delinquency, that impose ongoing costs on governments and taxpayers.
But a new funding mechanism—social impact bonds (SIBs)—may offer an innovative means of harnessing private capital to achieve measurable gains on some of the most persistent social ills.
Weiner professor of public policy Jeffrey Liebman is spearheading an effort at Harvard Kennedy School to accelerate their adoption.
Pro Bono Australia
There is good reason for Australia to look to the UK for leadership in the social enterprise movement over the last 15 years, according to Social Traders Head of Strategy and Market Development, Mark Daniels. In the land of hope and glory, strong political leadership, significant financial resources and supportive enabling organisations have all contributed to creating a vibrant social enterprise environment, he says.
The growth of social enterprise activity in the UK has stemmed from political champions since Tony Blair’s election as Prime Minister back in 1997, followed by Gordon Brown and now David Cameron.
Having joined Peter Holbrook, CEO of Social Enterprise UK (SEUK) on his recent whirlwind trip to Australia, I was struck by three key insights about what is needed to develop a thriving social enterprise In Australia.