Awards for Essex, chances for children and more wondrous Canadian developments…
The benefits of early childhood programs are widely accepted but there remain great challenges in developing the resources to pay for them. ReadyNation, a project of America’s Promise Alliance, is excited to announce its new initiative to advance an innovative funding model that can support research-tested programs such as pre-kindergarten and home visiting.
For the past two years, ReadyNation has been pioneering the exploration of early childhood social impact bonds (SIBs). Often known as “pay for success” bonds, SIBs raise money for investments that improve social outcomes. For example, the early childhood SIBs might pay for home visiting, in which parent mentors work closely with at-risk new and expectant families to help them create a nurturing environment for their babies. If children who receive these services are healthier, they would need less medical care, saving the state money. Some of those savings would be reinvested in the program; the rest will be paid to the purchasers of the bonds as a return on their investment.
The Nonprofit Finance Fund (NFF), a leading US-based community development financial institution (CDFI) recently released their annual “State of the Nonprofit Sector Survey Results.” The report highlights critical shifts in the financial stability of the social sector and underscores a new economic reality: funding from traditional sources is declining and the number of people in need of service is rising.
Antony Bugg-Levine, CEO of the Nonprofit Finance Fund has stated, “Nonprofits are changing the way they do business because they have to: government funding is not returning to pre-recession levels, philanthropic dollars are limited, and demand for critical services has climbed dramatically.”
Essex County Council is today celebrating winning the MJ award for Innovative Finance for its work on Social Impact Bonds.
Working with Social Finance, Essex County Council is delivering the first local authority social impact bond targeted at vulnerable children and young people on the edge of care.
Speaking of the award win, Leader of Essex County Council Councillor, David Finch said: “Innovation and creativity are increasingly important when local authorities are being tasked to do much more with ever decreasing budgets. In this challenging financial environment I’m delighted that our social impact bond has been recognised for its innovation and I congratulate all those involved with its delivery.”