Recently, the Social Finance Global Network announced that there are now over 100 Social Impact Bonds (SIBs) launched worldwide. The Social Finance Impact Bond Global Database provides information on all 108 launched projects, which have collectively mobilized $392 million in capital to reach up to 738,000 people in 24 countries.
The field has seen impressive growth since the first project was pioneered by Social Finance UK in 2010 in Peterborough, with a goal of reducing reoffending among short-sentenced prisoners, a chronic challenge in the UK criminal justice system. This summer it was announced that the Peterborough Social Impact Bond reduced reoffending by 9% and investors were repaid in full, with a 3% annualized return.
Social Impact Bonds build on key movements, including effective philanthropy, impact investing, and evidence-based policymaking. The goal is to drive systems change in how governments fund social services and how funders invest, in pursuit of measurable and lasting impact for communities. In 2017 alone, 33 Social Impact Bonds launched addressing health disparities, homelessness, child and family welfare, education, workforce development, and recidivism. Some results:
- Nearly $400m raised to tackle social issues globally
- Nine countries launched first programs in 2017
- US market sees largest market growth in 2016-7
- First Social Impact Bond in Peterborough reduced reoffending by 9% and returned investor capital with a 3% annualized return in 2017
- 10 Social Impact Bonds have reported a full capital return following successful positive outcomes for vulnerable adolescents, homeless youth and ex-offenders
Read the full article about social impact bonds by Api Podder at My Social Good News.
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