Update August 2013: I no longer update this page. For an updated listing of SIBs and DIBs, visit Instiglio’s page here: http://www.instiglio.org/sibs-worldwide/
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This page lists social impact bond projects that we are aware of throughout the world. We will update this page periodically. If you have updates, comments or other information about social impact bond projects, email mike.belinsky@instiglio.org.
ENGLAND
Recidivism in Peterborough, UK. This is this first social impact bond project, launched by the UK Ministry of Justice and Social Finance UK Ltd. The $8 million project aims to reduce recidivism among three cohorts of 1,000 adult male prisoners leaving HM Peterborough Prison over six years, from 2010 to 2016. (Source)
Foster Care in Essex, UK. This $10.6 million project aims to reduce the number of children in foster care in Essex County. The government estimates savings of $118,000 per year on housing and healthcare per person moved to family housing. Manchester City Council, UK, has commissioned a similar project. (Essex, Manchester)
Homelessness in London. This $7.8 million project aims to house chronically homeless individuals (rough sleepers) in the greater London metropolitan area. The government will pay for each homeless individual moved to permanent housing. (Source 1, Source 2)
Foster care in Wales . Cardiff Council in Wales is considering a social impact bond for foster care to reduce the “number of children being placed in non-council and out-of-county residential care.” As of November 2012, the county was planning to invest $100,000 into a feasibility study to further explore the issue. (Source)
Workforce Development by the UK Department for Work and Pensions (DWP). DWP has commissioned six SIBs through the Innovation Fund to improve employment outcomes for young people in Merseyside, Shoreditch, Newham and Waltham Forest, the West Midlands, Nottingham, and Perthshire and Kinross. The government has estimated savings from reduced unemployment benefits for each person who gets a job. (Source)
Merseyside: Triodos Bank and Greater Merseyside Connexions Partnership will operate one of DWP’s social impact bonds, a $7 million, three-year program to support youth at risk of unemployment in Merseyside. (Source)
Shoredich: The Private Equity Foundation (PEF) has developed a social impact bond aimed at reducing the number of young people not in education, employment or training (NEET). PEF is investing £450,000 along with £450,000 from Big Society Capital to run an innovative coaching programme called ThinkForward, in 10 schools in Shoreditch East London, delivered by the charity Tomorrow’s People. (Source)
DWP Round Two: In its second round of funding from the Innovation Fund, the UK Department for Work and Pensions funded two more SIBs. These two SIBs, worth $11 million, “will fund interventions to work with around 2,500 vulnerable 14-15 year-olds in the North-West of England” for three years. Service providers Adviza and Teens and Toddlers will deliver services. Investors include Bridges Ventures, Big Society Capital, Impetus Trust, Esmee Fairbairn Foundation, Caf Venturesome and the Barrow Cadbury Trust. Social Finance UK will act as the program intermediary. (Source)
Elderly Care in Cornwall, UK. Age UK and Improving Care are developing a SIB on ageing and care in Cornwall. (Source)
UNITED STATES
Recidivism in New York City. This $9.6 million project aims to reduce recidivism among adolescent males in the Rikers Island facility. The government has estimated savings on each released inmate who stays out of prison. Goldman Sachs is the investor. Bloomberg Philanthropies is offering a 75% credit guarantee. MDRC is the service provider. (Source)
Recidivism in Massachusetts. This project aims to reduce recidivism among youth in Massachusetts prisons. The government has estimated savings of $30,000 per released inmate that does not return to prison. (Source)
Homelessness in Massachusetts. This project aims to house chronically homeless individuals in Massachusetts. The government has estimated savings from reduced use of emergency healthcare services and expects to pay about $20,000 per individual moved to permanent housing. Massachusetts has allocated $50 million for the recidivism and homelessness projects. (Source)
Workforce Development with the US Department of Labor. This $20 million project aims to improve workforce development outcomes. The government expects to award one to three grants of up to $12 million each. (Source)
Coyahoga County. Coyahoga County in Ohio released in November 2012 a request for proposals to fund social service programs through pay-for-success contracts. Third Sector Capital Partners is working with the county to evaluate proposals and structure the program. (Source)
Recidivism in the US Department of Justice. The Justice Department announced that it will disburse part of its funding under the Second Chance Act to improve reentry programs through pay-for-success contracts. (Source)
AUSTRALIA
Foster Care in New South Wales, Australia. This $10 million project aims to reduce the number of children in foster care. The government will pay service providers to work with 550 families for 5 years . Government will pay for the reduction in number of days children spend in foster care. In a similar project, the government is paying another $10 million for foster care services over 7 years. (Source)
Recidivism in New South Wales, Australia. This $7 million project aims to reduce recidivism among 500 individuals over 6 years. The government will pay for each released inmate that does not return to prison. (Source)
CANADA
Canada. The federal government started exploring social impact bonds in areas such as “building affordable housing, counselling ex-convicts to keep them from reoffending, or working with at-risk youth.” The government is asking for public comment on potential SIB applications by December 31, 2012. (Source)
INTERNATIONAL DEVELOPMENT
The Development Impact Bond Working Group is analyzing several projects in international development. The Group has published the following documents on Development Impact Bonds:
1. DIB Working Group Briefing Note
2. DIB Working Group Meeting 1 Presentation
3. DIB Working Group Meeting 2 Presentation
Members of the DIB Working Group have started exploring, independently or as part of the Group’s process, several potential applications of the DIB model.
Family planning in sub-Saharan Africa. Members of the DIB Working Group are exploring the improvement of availability and uptake of contraception in underserved areas in sub-Saharan Africa. Exploring government involvement in commissioning outcomes and donor agency funding of outcomes. Potential outcomes are contraceptive prevalence rates, contraceptive continuation rates, teen birth rates, and time between births. (source)
Update on October 2012: DFID has released a report of a scoping study on a family planning development impact bond that was conducted by the Center for Global Development and Social Finance between April and May 2012. The study is available here.
In the first meeting, the Group considered the following potential applications (source):
- Family planning (DFID/CGD/Social Finance)
- Sleeping sickness (DFID/CGD/Social Finance)
- Female education (DFID)
- Malaria (UN Foundation / Gates Foundation)
- Polio (Gates Foundation)
- Job creation (Kurt Hoffman)
- Agricultural productivity (Gatsby Foundation)
- Increasing tax revenue (OECD)
- Increasing revenue from water billing (CGD)
In the second meeting, the Group considered the following case studies (source):
- Elimination of sleeping sickness in Uganda (Social Finance)
- HIV treatment as prevention in Swaziland (Clinton Health Access Initiative)
- Improving the quality of low cost private schools (Lion’s Head Global Partners)
- Access to quality secondary education in Uganda (Social Finance)
- Improving business development services (U.S. Agency for International Development)
- Energy efficient buildings (Overseas Private Investment Corporation)
Michael Belinsky 