Foundation for the Jewish Future; It’s Our Challenge (Jewish Philanthropy)

d. Social impact bonds.

Social impact bonds (SIBs) have become a major vehicle for raising funds from the private sector to ensure the sustainability of projects with measurable impact in the nonprofit sector. Their global champion is Sir Ronald Cohen, the British Jewish financier who pioneered the development of Social Finance UK in 2010, Social Finance US in 2011 and Social Finance Israel in 2013. Social Impact Bonds and their potential application to Jewish education, were explained in detail in a recent post in eJewish Philanthropy

The establishment of this foundation should be a high priority. High impact Jewish education is increasingly becoming our insurance policy for our Jewish future and if we are unable to provide long-term sustainability, the “profits” from our current educational investments will be jeopardized.

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What PFS investors and governments have in common – and where they are (surprisingly) different (Urban Institute)

Given the significant challenges associated with pay for success (PFS) projects, it is natural to question why jurisdictions and organizations choose to do pay for success. (After all, even with these challenges, there are 20 PFS projects in the United States, with numerous more in development.) Or as one government official put it, “For the benefit of offloading risk and gaining the upfront commitment, is that worth all the effort of developing this model, the contracting, the evaluation, and all the rest of this system?”

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How Can Delaware Sustain Its Nonprofits? (Delaware Today)

Comstock-Gay, du Pont and Vincent cite another option, social impact bonds, sometimes referred to as “pay for success.” The concept is somewhat complex, but the basic idea is that private investors lend money to governments to fund programs that, if successfully delivered, will generate long-term savings. Investors get their money back, with interest, if an independent evaluator certifies that the program has achieved the promised result.

“It’s been done in a number of states,” Comstock-Gay says.

The best-known was an experiment that failed—a program to reduce recidivism among youths at New York City’s Rikers Island Prison. Goldman Sachs loaned the city $7.2 million to fund the program, and Bloomberg Philanthropies guaranteed $6 million of the loan, reducing Goldman Sachs’ risk. If the program reduced recidivism by 8.5 percent, Goldman Sachs would have gotten all of its money back; if it reduced recidivism by 10 percent, Goldman Sachs would have earned anywhere from $500,000 to $2.1 million. The program didn’t meet its goals, so Goldman Sachs took a loss.

While the experiment didn’t work out, du Pont sees this approach as a win for two reasons: Private investors put up the money for the test, and, when it failed, it was shut down rather than forcing the government to pick up the tab for a program that wasn’t working.

Though it may seem ideal to have a major investor back such a program, du Pont says it would be possible to open up a bond issue to individual investors, allowing Delaware residents to put up $500 or $1,000 to test an idea they support, with the prospect of a financial return.

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Coming to Consensus on Project Stages (Nonprofit Finance Fund)

We at Nonprofit Finance Fund (NFF) took great care in redesigning the Pay for Success Learning Hub for, and based on, input from a variety of stakeholders. This endeavor allowed us to identify and address gaps in knowledge and information needs in the field. One notable gap was that we—still—heard a clamoring for a stronger shared language. To address this gap we created the glossary, a living resource of terms. This piece highlights how the pursuit of the glossary structured the Hub to flexibly capture different types of projects and proposes a definition of “launch.”

While Pay for Success has made impressive strides in cross-sector collaboration, common language remains a hurdle. What constitutes a ramp-up versus a pilot? Does an intermediary differ from a transaction coordinator? Given the pace of innovation in the Pay for Success (PFS) field, and its position at the intersection of the private, public, and social sectors, there is a continuous need to rapidly refine and clarify language. Even the definition of one of the most important terms, a “launched” project, lacks consensus in the field, with each stakeholder having their own slightly different take on what constitutes one. The debate that surrounds this term, however, is part of a larger discussion around the project life cycle of each PFS deal. 

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Privately funded project to reduce recidivism begins in Ventura County (Ventura County Star)

A new funding model that puts private investors on the hook for the cost of a social program aimed at curbing the rearrest rate of people on probation has launched in Ventura County. 

The Ventura County Project to Support Reentry is based on what's called the "Pay for Success" project that was first implemented in the United Kingdom. The local initiative involves investors paying much of a $3 million program that will test treatment strategies for 400 people on formal probation in Ventura County. 

In a news release sent Monday, the county said the local program, which has been in the works for more than a year, is the 20th "Pay for Success" project in the United States. 

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OHA presents awards to outstanding leaders; hosts Annual Meeting (Oklahoma Hospital Association)

Rep. Leslie Osborn received the OHA Outstanding Achievement Award. In 2008, Osborn was elected to the Oklahoma House of Representatives, District 47. She has chaired the revenue and taxation committee, appropriations sub-committee on natural resources, and was the first female in the House of Representatives to chair the judiciary committee. In December 2016, she was named as the first Republican female chairman of the House appropriations and budget committee. 

Rep. Osborn has been a champion for hospitals, working to secure adequate budget allocations for health agencies and working toward future passage of a cigarette tax increase.

In her time at the state Legislature, Osborn has authored and passed landmark workers’ compensation reform that changed Oklahoma from an antiquated judicial system to an administrative system, saving businesses across the state an average of 30 percent in insurance costs since its passage; passage of Real ID implementation; and implementation of a pay-for-success program to move 100 women a year out of incarceration and into an intensive therapy and placement program called in Women in Recovery.
 

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Standardize the Work, Don’t Lose the Nuance: Can The New ‘Pay for Success’ Models Replicate Into Functional Utility? (Medium)

The social impact sector in developed and developing countries needs to innovate their financing structures so that the rising demand for social intervention programming is matched by an expanding supply of capital. The ‘pay for success’ Social Impact Bond (SIB) is one of the frontier efforts of the innovative finance field, which holds the powerful potential to facilitate relationships that motivate partnerships and increase funding that addresses a shared mission. The types of deals which fall under the ‘pay for success’ models have thus allowed the circumstances of the arrangements to dictate the partnership structure. While this breadth is expected and necessary for an innovative concept to test its limits, utility and efficacy, the next wave of engaged practitioners need to take the initiative to evaluate these piloted models within their situational context and create a ‘standardized’ set of practices which respects unique deal circumstances so that the pay for success models can overcome their greatest current barrier to replicability: complexity.

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Boise and IPI Discuss Pay For Success (Boise State University)

Pay for Success (PFS), a financing mechanism used to support evidenced-based social and environmental interventions, has recently been explored by the City of Boise. In 2016 Idaho Policy Institute’s (IPI) Assistant Director Vanessa Fry tested the feasibility of utilizing PFS as a means to address issues related to chronic homelessness in Ada County. As a result, community stakeholders determined Housing First would be implemented in Ada County. Although the community decided not to utilize PFS financing for the project, its exploration enabled community members to realize the true costs of chronic homelessness.

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Mayor McAdams named finalist in national Ideas Challenge (Utah Policy)

The NewDEAL announced that Salt Lake Mayor Ben McAdams’ work to reduce and prevent homelessness has made him a finalist in the 2017 New Ideas Challenge – a competition among rising and innovative state and local policymakers to propose the best ideas for expanding opportunity and improving government in the new economy.

A full list of finalists is below.

Of fifty proposals evaluated by an esteemed and diverse panel of judges, McAdams’ Collective Impact on Homelessness initiative is a finalist in the “Future of Communities” category, which includes ideas that strengthen communities and recognize that everyone benefits when more people have the best chance to contribute positively. The effort brings together a coalition of state, county and city government representatives with more than 30 providers to reform how services are delivered. Work has involved Pay for Success initiatives, through which the private sector invests in public problems and recoups their funding based on a project's success. These include Salt Lake County's 'Homes not Jail' effort and the REACH initiative to improve outcomes for individuals with moderate to severe substance use disorders.

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Data dictionaries and community engagement: Reflections from the Empowering Families Learning Community’s first convening (Third Sector Capital Partners)

Last month, Actionable Intelligence for Social Policy (AISP), Third Sector’s data integration partner, convened government leaders from around the country to explore ways to embed administrative data into government programming and decision-making.

The three-day seminar marked the first in a series of Learning Community meetings over the next two years, during which ten jurisdictions will be building out and improving upon Integrated Data Systems (IDS), that embed ongoing administrative data sharing and evaluation across multiple government agencies.

Seven of these states and counties, Connecticut, Iowa, North Carolina, Broward County, Florida,

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