Canadian Social Research Links

Social Finance
and
Social Impact Bonds


Updated April 21, 2015


[ Go to Canadian Social Research Links Home Page ]


Social Impact Bond

NOTE : Scroll to the bottom of the above article for links to 60+ related resources.
Source: Wikipedia, the free encyclopedia


SocialFinance.ca --- the online community and information hub for social finance and impact investing in Canada.

With over 150 contributors, SocialFinance.ca brings together the voices of social finance practitioners and thought leaders across the country and internationally.

Social Impact Bonds:
http://socialfinance.ca/social-impact-bonds

SocialFinance.ca is currently operated out of the MaRS Centre for Impact Investing office in Toronto, ON.
http://www.marsdd.com/


Finance for Good

http://financeforgood.ca/
Finance for Good is a non-profit organization that was founded to empower social service providers to address the root cause of social issues through the use of social impact bonds. Social impact bonds enable investment in prevention, and we believe that focusing on prevention will lead to sustainable, positive impacts in our communities.

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What's a Social Impact Bond??
---------------------------------------------


From
Employment and Social Development Canada:
[ http://www.esdc.gc.ca/ ]

Harnessing the power of social finance: Canadians
respond to the National Call for Concepts for Social Finance

http://www.esdc.gc.ca/eng/consultations/social_finance/report/index.shtml
Excerpt:
Unlike standard bonds, Social Impact Bonds (SIBs) are not a form of debt security in which interest is paid by the issuer of the bond to the holder at maturity. SIBs combine a pay-for-performance element with an investment-based approach: private investors provide up-front capital to fund interventions, and can expect to get back their principal investments and a financial return if the results are achieved.


According to Wikipedia:
[ http://goo.gl/Fegsi ]

"A Social Impact Bond, also known as a Pay for Success Bond or a Social Benefit Bond, is a contract with the public sector in which a commitment is made to pay for improved social outcomes that result in public sector savings. The first Social Impact Bond was launched by Social Finance UK
[ http://www.socialfinance.org.uk/ ] in September 2010.

Call for proposals for Social Impact Bonds:

The Province of Ontario has launched a call for proposals for Social Impact Bonds.
http://www.ontario.ca/business-and-economy/social-impact-bonds
[Focus areas are Housing, Youth at Risk and Improving employment for people facing barriers.]

The deadline was May 2, 2014.

What are Social Impact Bonds, you ask?
Social Impact Bonds, and other innovative pay-for-performance social finance tools, bring together diverse sectors of society – governments, corporations, private investors, foundations, service providers and social enterprises – to create novel solutions to pressing social challenges. Through a Social Impact Bond, private investment is used to finance these interventions upfront, which are delivered by service providers with a proven track record.

Feds introduce controversial ‘social impact bonds’ to fund social services
http://www.thestar.com/news/canada/politics/article/1284941
November 8, 2012
By Les Whittington
OTTAWA—The federal government is introducing a controversial new approach to funding social services called “social impact bonds” that can turn a profit for private investors. Prime Minister Stephen Harper’s Conservatives, who have often been accused of short-changing social programs, view the bonds as a valuable source of fresh funding for Canadian communities.
(...)
Under Human Resources Minister Diane Finley’s proposal, the government would contract with a non-profit organization or a private, for-profit business to supply a service, such as building affordable housing, counselling ex-convicts to keep them from reoffending, or working with at-risk youth. Funds would be raised from investors or charities to finance the project and, if the goals of the project were reached, the investors would be repaid their original investment plus a profitable return by Ottawa. If the project’s goals weren’t met, the federal government wouldn’t pay. The bonds, which have caught on in a big way in Britain and the United States, are a source of widespread debate. Many praise the idea as an innovative strategy to tap private capital and market discipline to address underfunded social goals. But critics say the bonds privatize social objectives in a way that gets governments and the public off the hook for paying for needed programs.

---

Social financing gives governments a risk-free way to move to cheaper solutions
http://www.thestar.com/news/canada/politics/article/1285710
November 9, 2012
Ever since Conservative British Prime Minister David Cameron’s government tapped private investors for a project to keep ex-convicts out of jail, tight-fisted governments around the world have been eyeing so-called social financing as way to pick up the cost of their own programs. In the British project, the most advanced experiment anywhere using “social impact bonds (SIBs),” non-profit groups funded by private investors are working with former inmates from Peterborough Prison. The success of the two-year-old project will be measured over the next six years to see if the social workers can bring about a drop in the dismaying rate at which ex-convicts reoffend. If that happens — and only if that happens — the private sector backers of the bond will be repaid their original investment, plus a profit.
(...)
Stephen Harper’s government, which has often expressed a preference for having the private sector — as opposed to public institutions — deal with society’s problems, has jumped on the social finance bandwagon enthusiastically.

Toronto Star
http://www.thestar.com

What's the latest news re. Social Impact Bonds in Canada?
(the remainder of the page you're now reading is mostly in reverse chronological order)

The Province of Ontario has launched a
call for proposals for Social Impact Bonds
.
http://www.ontario.ca/business-and-economy/social-impact-bonds
[Focus areas are Housing, Youth at Risk and Improving employment for people facing barriers.]
Deadline was May 2, 2014.

What are Social Impact Bonds, you ask?
Social Impact Bonds, and other innovative pay-for-performance social finance tools, bring together diverse sectors of society – governments, corporations, private investors, foundations, service providers and social enterprises – to create novel solutions to pressing social challenges. Through a Social Impact Bond, private investment is used to finance these interventions upfront, which are delivered by service providers with a proven track record.

Focus areas for proposals
We are looking for innovative, prevention-oriented ideas and solutions that address one or more of the following high-priority social policy challenges:
*
housing
* youth-at-risk
* improving employment opportunities for persons facing barriers.
Your proposal must focus on at least one of these areas.

Source:
Excerpts from the above link

-------------------------------------------

From the
federal government:

Harnessing the power of social finance: Canadians
respond to the National Call for Concepts for Social Finance

http://www.esdc.gc.ca/eng/consultations/social_finance/report/index.shtml
Excerpt:
Unlike standard bonds, Social Impact Bonds (SIBs) are not a form of debt security in which interest is paid by the issuer of the bond to the holder at maturity. SIBs combine a pay-for-performance element with an investment-based approach: private investors provide up-front capital to fund interventions, and can expect to get back their principal investments and a financial return if the results are achieved.
Source:
Employment and Social Development Canada
http://www.esdc.gc.ca/

---------------------------

Related links:

SocialFinance.ca
http://socialfinance.ca/
...the online community and information hub for social finance and impact investing in Canada.
With over 150 contributors, SocialFinance.ca brings together the voices of social finance practitioners and thought leaders across the country and internationally.

Social Impact Bonds:
http://socialfinance.ca/social-impact-bonds

---

Finance for Good
http://financeforgood.ca/
Finance for Good is a non-profit organization that was founded to empower social service providers to address the root cause of social issues through the use of social impact bonds. Social impact bonds enable investment in prevention, and we believe that focusing on prevention will lead to sustainable, positive impacts in our communities.

---

Centre for Social Innovation (CSI)
http://socialinnovation.ca/
The Centre for Social Innovation is a social enterprise with a mission to catalyze social innovation in Toronto and around the world. We believe that society is facing unprecedented economic, environmental, social and cultural challenges. We also believe that new innovations are the key to turning these challenges into opportunities to improve our communities and our planet.
We're a coworking space, community, and launchpad for people who are changing the world, with three locations in Toronto and a location in New York City.

---

Centre for Innovative Social Enterprise Development (CISED)
http://cised.ca/
CISED offers a continuum of supports for social enterprise in the city of Ottawa, including access to technical expertise, coaching, financing, learning communities, training, and cross-sector partnerships.

Social Impact Bonds vs Community Bonds: what is the difference?
http://cised.ca/social-impact-bonds-vs-community-bonds-what-is-the-difference/
November 15, 2012
There is much discussion and excitement about Social Impact Bonds currently. There are also several Canadian examples of community bonds used as financing tools for social enterprise. How do these two social finance instruments differ?

---

Community Bond
http://communitybonds.ca/
In the quest for funding, nonprofits have historically depended on those with deep pockets: government departments, foundations, corporate sponsors and individual philanthropists. This approach has sustained the sector for generations, but it limits the contribution of “regular citizens” to modest donations. Through emerging tools like the Community Bond, people of average means can be transformed from occasional donors or volunteers into citizen investors.

---

Social Impact Bond
http://en.wikipedia.org/wiki/Social_impact_bond
NOTE : Scroll to the bottom of the above article for links to 60+ related resources.
Source:
Wikipedia, the free encyclopedia
http://www.wikipedia.org/

SocialFinance.ca --- the online community and information hub for social finance and impact investing in Canada.
http://socialfinance.ca/
With over 150 contributors, SocialFinance.ca brings together the voices of social finance practitioners and thought leaders across the country and internationally.

Social Impact Bonds:
http://socialfinance.ca/social-impact-bonds

About Social Impact Bonds:

* http://citizenspress.org/editorials/social-impact-bond-casino

* http://citizenspress.org/leftnews/ottawa-seeks-to-copy-uk-conservatives-big-society-failure

* http://www.wellesleyinstitute.com/news/social-finance-generating-excitement-as-a-supplement-not-a-substitute-for-government-social-investments/

From the
National Union of Public and General Employees (NUPGE):

Top 10 reasons to be worried about Social Impact Bonds:
Along with Public Private Partnerships (P3s), Social Impact Bonds are a bit like money laundering because they allow politicians to hide debt.

http://www.nupge.ca/content/5494/presidents-commentary-top-10-reasons-be-worried-about-social-impact-bonds
President's Commentary by James Clancy
January 2, 2013
Social Impact Bonds are the latest magical solution for governments with deficits. Like other privatization schemes, they are intended to help governments shift costs off their balance sheets. They try to do that by allowing the private sector to run services to make profits for investors. Services being targeted include: developmental services, homelessness, supports for people with developmental disabilities, mental health, justice and corrections and public health.

Here are the top 10 reasons you should be concerned about the latest privatization scheme known as Social Impact Bonds.

10. There's no proof they even work. (...)
9. They allow governments to hide debt and pass costs onto future generations. (...)
8. Setting up Social Impact Bonds is complex and costly. (...)
7. Governments end up paying no matter what. (...)
6. They undermine community agencies and charities. (...)
5. They provide a smoke screen for cuts to public services. (...)
4. Investor profits and extra bureaucracy push up costs. (...)
3. Services are no longer accountable or transparent to the public. (...)
2. Quality and continuity of services suffer. (...)
1. Investor profits are incompatible with universal programs that provide a safety net for all. (...)

More information about Social Impact Bonds:

Social Impact Bonds: A new way to privatize public services (PDF - 44K, 5 pages):
http://www.nupge.ca/files/publications/Social_Impact_Bonds.pdf
April 2012

---

Source:
James Clancy is the National President of the
National Union of Public and General Employees (NUPGE)
http://www.nupge.ca/
NUPGE is one of Canada's largest labour organizations with over 340,000 members. Our mission is to improve the lives of working families and to build a stronger Canada by ensuring our common wealth is used for the common good.

From the
Toronto Star:

Feds introduce controversial ‘social impact bonds’ to fund social services
http://www.thestar.com/news/canada/politics/article/1284941
November 8, 2012
By Les Whittington
OTTAWA—The federal government is introducing a controversial new approach to funding social services called “social impact bonds” that can turn a profit for private investors. Prime Minister Stephen Harper’s Conservatives, who have often been accused of short-changing social programs, view the bonds as a valuable source of fresh funding for Canadian communities.
(...)
Under Human Resources Minister Diane Finley’s proposal, the government would contract with a non-profit organization or a private, for-profit business to supply a service, such as building affordable housing, counselling ex-convicts to keep them from reoffending, or working with at-risk youth. Funds would be raised from investors or charities to finance the project and, if the goals of the project were reached, the investors would be repaid their original investment plus a profitable return by Ottawa. If the project’s goals weren’t met, the federal government wouldn’t pay. The bonds, which have caught on in a big way in Britain and the United States, are a source of widespread debate. Many praise the idea as an innovative strategy to tap private capital and market discipline to address underfunded social goals. But critics say the bonds privatize social objectives in a way that gets governments and the public off the hook for paying for needed programs.

---

Social financing gives governments a risk-free way to move to cheaper solutions
http://www.thestar.com/news/canada/politics/article/1285710
November 9, 2012
Ever since Conservative British Prime Minister David Cameron’s government tapped private investors for a project to keep ex-convicts out of jail, tight-fisted governments around the world have been eyeing so-called social financing as way to pick up the cost of their own programs. In the British project, the most advanced experiment anywhere using “social impact bonds (SIBs),” non-profit groups funded by private investors are working with former inmates from Peterborough Prison. The success of the two-year-old project will be measured over the next six years to see if the social workers can bring about a drop in the dismaying rate at which ex-convicts reoffend. If that happens — and only if that happens — the private sector backers of the bond will be repaid their original investment, plus a profit.
(...)
Stephen Harper’s government, which has often expressed a preference for having the private sector — as opposed to public institutions — deal with society’s problems, has jumped on the social finance bandwagon enthusiastically.

Toronto Star
http://www.thestar.com/

United States

From the
Center for American Progress:

New York City and Massachusetts to Launch the First Social Impact Bond Programs in the United States
http://www.americanprogress.org/issues/economy/news/2012/11/05/43834/new-york-city-and-massachusetts-to-launch-the-first-social-impact-bond-programs-in-the-united-states/
By Kristina Costa and Jitinder Kohli
November 5, 2012

Source:
Center for American Progress
http://www.americanprogress.org/

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To search the complete
Canadian Social Research Links website ,
use the text box below:


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use Ctrl + F to open a search window.


SUBSCRIBE TO THE
CANADIAN SOCIAL RESEARCH NEWSLETTER

Sign up to receive this free weekly newsletter by e-mail or read it online
(including archives back to January 2005).
Each issue includes all links added to this site during the previous week.
(2800+ subscribers in January 2017)

 

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