Social Finance
Encyclopedia
Social Finance is a London, England, based organisation created in 2007 with the aim of developing a social investment market in the UK. The organisation provides access to capital and advice to investors and social sector entities interested in delivering social impact.
and the Big Lottery Fund
.
announced a six-year social impact bond (SIB) pilot scheme run by Social Finance that will see around 3,000 short term prisoners from Peterborough prison, serving less than 12 months, receiving intensive interventions both in prison and in the community. Funding from investors outside government will be initially used to pay for the services, which will be delivered by Third Sector providers with a proven track record of working with offenders. If reoffending is not reduced by at least 7.5% the investors will receive no recompense.
The Social Impact Bond in Peterborough was launched by Secretary of State for Justice Kenneth Clarke
MP and Prisons Minister Crispin Blunt
on 10 September 2010.
(NHS) or by an external provider such as a social enterprise or a civil society organisation.
In May 2011, Massachusetts became the first state in the nation to formally explore social impact bonds when Governor Deval Patrick's administration issued a Request for Information (RFI) to seek public input into how best to implement SIBs in the Commonwealth. Working with key stakeholders, Social Finance, Inc. submitted a detailed response to the RFI, laying out the critical success factors for SIBs and a roadmap for Massachusetts to pursue the instrument. The full text can be found here.
The conferences will address:
– How the Social Impact Bond works
– The potential of the SIB market
– Raising social investment at scale
– Funding to provide new solutions to old problems
– Addressing technical challenges of setting up a Social Impact Bond
There will be break-out sessions on social topics that might benefit from the Social Impact Bond financing and a practical walk-through of how to set up a new Social Impact Bond. Social Finance will run one to one consultations offering hands-on support for commissioners, social service providers and investors with a Social Impact Bond.
Funding
Initially financed by a group of philanthropists, later financial support included charitable trusts and foundations including: Esmée Fairbairn Foundation, Rockefeller FoundationRockefeller Foundation
The Rockefeller Foundation is a prominent philanthropic organization and private foundation based at 420 Fifth Avenue, New York City. The preeminent institution established by the six-generation Rockefeller family, it was founded by John D. Rockefeller , along with his son John D. Rockefeller, Jr...
and the Big Lottery Fund
Big Lottery Fund
The Big Lottery Fund is a grant-making non-departmental public body in the United Kingdom created by the Government to administer the funding of "good causes" following the creation of the National Lottery. It has an annual expenditure of £630 million...
.
Re-offending social impact bond
On 18 March 2010, then Secretary of State for Justice Jack StrawJack Straw
Jack Straw , British politician.Jack Straw may also refer to:* Jack Straw , English* "Jack Straw" , 1971 song by the Grateful Dead* Jack Straw by W...
announced a six-year social impact bond (SIB) pilot scheme run by Social Finance that will see around 3,000 short term prisoners from Peterborough prison, serving less than 12 months, receiving intensive interventions both in prison and in the community. Funding from investors outside government will be initially used to pay for the services, which will be delivered by Third Sector providers with a proven track record of working with offenders. If reoffending is not reduced by at least 7.5% the investors will receive no recompense.
The Social Impact Bond in Peterborough was launched by Secretary of State for Justice Kenneth Clarke
Kenneth Clarke
Kenneth Harry "Ken" Clarke, QC, MP is a British Conservative politician, currently Member of Parliament for Rushcliffe, Lord Chancellor and Secretary of State for Justice. He was first elected to Parliament in 1970; and appointed a minister in Edward Heath's government, in 1972, and is one of...
MP and Prisons Minister Crispin Blunt
Crispin Blunt
Crispin Jeremy Rupert Blunt is a British Conservative Party politician. He is the Member of Parliament for the Reigate constituency in Surrey, and since May 2010 he has been the Parliamentary Under-Secretary of State for Prisons and Youth Justice within the Ministry of Justice.He first entered...
on 10 September 2010.
Vulnerable children
Three UK local authorities are working with Social Finance to assess the potential for social impact bonds to improve family support services. These studies will assess the potential of social impact bonds to fund preventive and early intervention services which improve outcomes for children and generate cost savings for Local Authorities.Drug rehabilitation
Social Finance are currently assessing the feasibility of establishing a Social Impact Bond to fund drug rehabilitation services.Health
Evidence suggests that considerable savings could be made if health budgets allocated more funding for preventative measures. Social Finance is looking into the potential of funding such measures through a Social Impact Bond. A health orientated Social Impact Bond could be developed internally by the National Health ServiceNational Health Service (England)
The National Health Service or NHS is the publicly funded healthcare system in England. It is both the largest and oldest single-payer healthcare system in the world. It is able to function in the way that it does because it is primarily funded through the general taxation system, similar to how...
(NHS) or by an external provider such as a social enterprise or a civil society organisation.
U.S. office
In January 2011, Social Finance announced a Boston, Massachusetts based sister organization, Social Finance, Inc., which will bring social impact bonds to the U.S. market.In May 2011, Massachusetts became the first state in the nation to formally explore social impact bonds when Governor Deval Patrick's administration issued a Request for Information (RFI) to seek public input into how best to implement SIBs in the Commonwealth. Working with key stakeholders, Social Finance, Inc. submitted a detailed response to the RFI, laying out the critical success factors for SIBs and a roadmap for Massachusetts to pursue the instrument. The full text can be found here.
Publications
- A New Approach to Banking: Extending the use of Jam Jar Accounts in the UK (2011), http://www.socialfinance.org.uk/sites/default/files/SF_JamJarAccountReport_FULLREPORT.pdf
- Towards a New Social Economy: Blended value creation through Social Impacts Bonds (2010), http://www.socialfinance.org.uk/downloads/Towards_A_New_Social_Economy_web.pdf
- Social Impact Bonds: Rethinking finance for social outcomes(2009), http://www.socialfinance.org.uk/downloads/SIB_report_web.pdf
- Charity mergers: Tackling the issues in practice(2009), http://www.socialfinance.org.uk/downloads/SF_Charity_Mergers_Final.pdf
- Bringing Social Impact Bonds to Massachusetts (2011), http://www.socialfinanceus.org/sites/default/files/Social%20Finance%20RFI%20Response.pdf
Social impact bond conferences
Social Finance is hosting three conferences in Glasgow, Birmingham and London in March 2011. The conferences will focus on how to build the marketplace for social impact bonds. Speakers will include social investors, government representatives and voluntary sector practitioners.The conferences will address:
– How the Social Impact Bond works
– The potential of the SIB market
– Raising social investment at scale
– Funding to provide new solutions to old problems
– Addressing technical challenges of setting up a Social Impact Bond
There will be break-out sessions on social topics that might benefit from the Social Impact Bond financing and a practical walk-through of how to set up a new Social Impact Bond. Social Finance will run one to one consultations offering hands-on support for commissioners, social service providers and investors with a Social Impact Bond.
People
Board of Directors- Bernard Horn, Chair
- David Blood
- Sir Ronald Cohen
- Victoria Hornby
- Wol Kolade
- Penny Newman
- Geraldine PeacockGeraldine Peacock-Career:Geraldine was appointed Chief Charity Commissioner and the Charity Commission's first Chair in 2004, with the remit of making the Commission 'fit for purpose' to implement the new Charities Act...
CBE - David RobinsonDavid Robinson-Sports personalities:*David Robinson , American player*David Robinson , cricketer*David Robinson , English professional player; striker from 1988 to 1998...
- James StrachanJames StrachanJames F. Strachan was a Canadian ice hockey executive and businessman. He was an owner or part-owner with Montreal, Canada teams, the Montreal Wanderers and Montreal Maroons.-Hockey career:...
- Philippa StroudPhilippa StroudPhilippa Stroud is a co-founder and former Executive Director of the think tank the Centre for Social Justice. She is a member of the Conservative Party and in 2009 The Daily Telegraph named her as the 82nd most influential right-winger, ahead of the last Conservative leader Michael Howard.-Life...
- Peter WheelerPeter WheelerPeter John Wheeler is a former international rugby union player who played hooker and is Chief Executive of Leicester Tigers.-Early life:...