intro’d to Toby here:
Here’s a stat worth knowing: In the UK, 63% of men who finish short-term prison sentences are back inside within a year for another crime. Helping them stay outside involves job training, classes, therapy. And it would pay off handsomely — but the government can’t find the funds. Toby Eccles shares an idea for how to change that: the Social Impact Bond. It’s an unusual bond that helps fund new social services — especially those where a small investment could create a much larger societal benefit. (And yes, investors, mainly NGOs, get a share of the profit if the service works.)
Toby Eccles has created a radical financial instrument that helps private investors contribute to solving thorny public problems.
Invest in social change
what’s it worth to you if fewer of these guys are re-offenders.. making the economic case…
social impact bonds:
govt only pays if works
investors 1) invest in social change 2) make a reasonable return
service providers – opportunity to do what’s valuable to them.. experiment
society – safer. less money spent on crime.
offenders – connections to needs
obama is considering 300 mill in us budget for these structures..
why different? brings –
innovation (chance to experiment with new ideas, less difficult to everyone)
rigour (by working toward outcomes..? perhaps part of the flaw?)
flexibility (normal contracting.. is heavily micro managed… business plan is not the one that generally works)
partnership (expertise from all parties..)
social finance site:
Many charities and social enterprises face serious financial challenges that stop them from carrying out their work effectively. We believe that, if social problems are to be tackled successfully, organisations seeking to solve them need sustainable revenues and investment to innovate and grow.
Our role is to devise the financial structures and raise the capital to enable this to happen.
Social Finance is building a pioneering organisation to develop financial products that marry the ambitions of investors and the sector. We support social organisations to raise and deploy capital; we work with government to deliver social change; and we develop social investment markets and opportunities.
social finance twitter: