Federal, state, and local governments are facing a financial crunch, and social services – especially prevention-oriented services – often face cutbacks or elimination, impacting vital areas including healthcare, education, poverty, and the criminal justice system.
Sitting at the nexus of the Foundation’s work in scaling innovation and impact investing, social impact bonds (SIBs), like ‘pay-for-success’ projects, represent one component of the rapidly growing field of innovative finance, aimed at helping state and local governments fund critical social programs through a combination of government initiation, private investment, and non-profit implementation. In the SIB model, the private sector works with governments and philanthropies to fund critical prevention focused social programs that help address the world’s most pressing problems. In this public-private partnership, investors are only repaid 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, saving tax payer dollars in the process.
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Social Impact BondsThrough a program related investment, the Foundation supported the Peterborough SIB pilot aimed at reducing prisoner recidivism—and now, four years later, we can point to tangible success for this new innovative finance mechanism.
Impact InvestingThe Rockefeller Foundation and our partner Asia Community Ventures are pleased to announce the recipients of the Impact Economy Innovations Fund (IEIF) in East and Southeast Asia.
Social Impact BondsA new infographic visually describes and defines social impact bonds, an emerging innovative finance tool helping state and local governments fund critical social programs.