A plethora of stories today, all fascinating…greetings from somewhere between Umea and Stockholm in the middle of Sweden…thanks to the wonders of airline wifi! Have a great weekend but first, happy reading:
Young’s Social Impact Bond Act Gets Subcommittee Hearing
Todd Young & Lindsey Erdody – Hoosier Times
An act introduced this summer by Indiana’s 9th district Rep. Todd Young and Rep. John Delaney, D-Md., is getting it’s first hearing. The Subcommittee on Human Resources of the Committee on Ways and Means will hear from experts involved with development of social impact bonds in the U.S. and individuals working with current social impact bond projects at 2 p.m. Tuesday. According to a press release, the hearing will focus on how state and local governments can achieve better results for families in need.
The idea of Social Impact Bonds uses a pay-for-performance model with a focus on preventative services instead of remediation. It requires investment up front, but is believed to have a pay off in the long run. The program would use public-private partnerships to invest in scientifically-proven social and public health programs with the payoff being tied to results. Government funds would only be released if desired outcomes were met.
The Impact Of Social Impact Bonds
Bradly VanDerStad – JWU CampusHerald
Whenever the government needs more money, taxpayers groan. What today’s government needs are open-minded officials who are not afraid to try original methods to save money from the budget. Here’s an idea that would help the state save money, keep people out of jail, and actually make money for potential investors. It’s called a Social Impact Bond, or SIB. How it works is simple: private investors direct some of their funds into community non-profits, dedicated to keeping criminals out of jail. Some of the state’s jailbirds are in and out of prison wasting tax money, when all they really need is a bit of counseling and perhaps training in a specialized skill that can get them a job. The state saves money as these criminals are kept out of jail and become more productive members of society–everyone wins!
Procurement Consortium To Launch Social Impact Bond
Carl Brown – Inside Housing
A procurement consortium of social landlords is planning to invest up to £1 million a year in a payment-by-results scheme to fund hundreds of jobs and training placements. Procure Plus, which has 40 members, plans to invest in one of the sector’s first social impact bonds in order to fund work schemes. Under social impact bonds, an investor provides cash up front which is used by an organisation to carry out a project. The investor is then paid by the government according to the results achieved, receiving a return.
Governments Must Do More To Grow Impact Investing – G8 Taskforce Chair Cohen
Astrid Zweynert – Thomson Reuters Foundation
Governments need to create policies that help to accelerate the growth of investing for profit and social good, the head of a task force set up by the world’s richest nations to boost impact investing said.
Sir Ronald Cohen, chair of the G8 Social Impact Investment Task Force, said the group’s first report, due out on Sept. 15, will make eight high-level recommendations aimed at boosting the market in impact investing, which generates measurable social or environmental benefits alongside financial returns.
Case Backs Brain Device As Wealthy Push Do-Good Investing
Margaret Collins – Businessweek
Researchers in Bethesda, Maryland, have spent eight years developing a handheld device to quickly assess potential brain trauma in injured U.S. soldiers and athletes with concussions. Jean Case and her husband Steve, who co-founded AOL Inc. (AOL:US), invested in BrainScope Co., the device’s developer, through their family office in 2008. The billionaire couple say they are using some of their fortune to help ease some of society’s ills while hopefully making a profit. They committed in June to spend $50 million in the coming years on mission-driven investments.
Learn how “pay-for-success” works in addressing the social issues affecting developing countries. This panel will provide an insider’s look into current pay-for-success initiatives in international development, including the first ever Development Impact Bond, which focuses on increasing school enrollment numbers and learning outcomes for girls in India. The panel will involve an interactive discussion and debate on the implications of pay-for-success for the future of social programs in developing countries.