Social Impact Bonds

Social Impact Bonds Rockefeller Foundation Innovation for the Next 100 Years Financial Crunch SIBS are an innovative financial tool to help state and local governments facing tough budget decisions fund critical social programs. In 2013, states face $85 Billion in federal grant cuts. Federal funding cuts to states include... Income Security & Community & Regional Development Employment & Training Education Social Services -$3-5B -$32.5B -$3.6B -$37.8B Impact investing is based on the premise that the resources of gover ument and philanthropy alone are insuf ficient to address the world's biggest problems Expanding the Pie SIBS create new funding streams and help put impact investing capital to work. Philanthropies and foundations help support critical social programs across various initiatives, with $37-3 Billion in estimated giving in 2011. Bringing private resources to impact investing EXPANDS THE PIE, WITH UP TO $1 Trillion in potential commercial capital over the next ten years. Social impact bonds represent one vehicle for applying impact investing dollars. Tapping into private potential is central in creating added value with SIBS The SIB Structure SIBS partner the government, private, and non-profit sectors to deliver a measurable social benefit. SIBS represent a WIN-WIN-WIN by cutting costs, rewarding success, and ensuring performance and accountability. Government Non-Profit Service providers initiate or scale programs with a measurable social benefit INTERMEDIARIES TAXT Investors Social impact bonds have traveled from concept to execution faster than any other scial innovation in rece nt history Momentum of SIB Network The Rockefeller Foundation has helped establish a SIB ecosystem by building networks between stakeholders in the US. To date, there are 17state and local governments using SIBS to tackle a range of issues, including: CA TX NY SC California is exploring Texas is using SIBS New York City is South Carolina is options for SIBS at the for chronic disease launching a SIB scaling a nurse- management within low-income communities, state and local level, to address youth recidivism rates by family partnership addressing issues from health care to targeting cardiovascular and lung disease program aimed at reducing infant mortality rates juvenile offenders supportive housing leaving Rikers Island www.rockefellerfoundation.org/social-impact-bonds MORE PE POLLARS Governments support opportunities Private investors expand financia for prevention-oriented social programs ERETURN SAVES T for SIBS in critical social areas DOUDEROTTO LINE R