A social innovation gaining prominence, Social Impact Bonds are being termed as a vehicle to fund social-purpose organizations in an operationally efficient manner by tying returns to predefined social indicators. The return on investment would effectively be contingent upon the ability to generate cost savings by deploying capital in an effective manner. In theory it is a reasonable proposition, which involves the private sector, makes the sovereign accountable, and inculcates a sense of societal ownership in the private sector. However, the attractiveness of these bonds in actually making a difference would be contingent upon their relative attractiveness to investors and the control that the private sector can exercise over the service providers (in which they have deployed their capital).
Finance Models
SocialFinance.ca produces a weekly round up featuring social finance related news, insights, job openings, and events. We source the content for these round ups from Twitter, an RSS reader, and directly from our community of social finance practitioners. Below is our round up for the week of August 2, 2011.
The Globe and Mail has produced a series of stories on falling seniors recently, highlighting an opportunity to save healthcare costs by improving preventative measures. One in three seniors over 65 experience a fall at least once a year, causing a range of injuries from head, wrist and hand injuries to back problems and hip fractures. The costs associated with falls are massive – around $3 billion in Canada - without taking lost productivity into account.
This is a video of Toby Eccles, founder of Social Finance (UK), explaining the Social Impact Bond (SIB) pilot undertaken in U.K. in spring 2010. The first such program in the world, it is a six-year pilot aimed at reducing reoffending rates of prisoners after they have been released. SIBs are an innovative method of financing social outcomes through collaboration between government, private investors, and social service agencies.
Last week, the first preliminary evaluation report from this SIB was released by the Ministry of Justice, United Kingdom. Based on interviews of those involved in developing and implementing the SIB, it aims to identify early lessons in SIB implementation.
Welcome to the launch of Your Guide to Social Finance. This is the first resource of its kind in Canada where people like you can get to know how social finance works for communities.
Your Guide is for social entrepreneurs and those interested in social ventures who are considering how social finance can support the opening, operation and expansion of enterprises that have a positive social and/or environmental impact.



























