Social Impact Investing

US
Federal: The U.S. Department of Housing and Urban Development (HUD) announced
in 2013 it will provide $5 billion in grant dollars to assist in the rebuilding and
strengthening effort following Hurricane Sandy and encouraged the five states impacted
by the storm to make use of evidence-based, Pay for Success strategies where
appropriate. In 2013, the Department of the Treasury issued a Request for Information
(RFI) that will help design a proposed $300 million Incentive Fund to further expand Pay
for Success. The Fund is intended to empower cities, states and nonprofits to test new
Pay for Success models. This same Fund was also part of the President’s commitment
of nearly $500 million in this year’s Budget to expand Pay for Success strategies.
UK
Children and Families
Social Finance worked with UK local authorities to assess the potential for social impact
bonds to improve family support services. These studies assessed 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.
In March 2012 Manchester City Council announced a social impact bond to fund Multidimensional
treatment foster care.
Australia
New South Wales: The Government of New South Wales, Australia, announced on 20
March 2012 that it will develop three pilots in the area of child protection / foster care
and Juvenile Justice. One of the child protection pilots is with a consortium involving the
Benevolent Society, Westpac Bank and the Commonwealth Bank of Australia. The
other child protection pilot is led by UnitingCare Burnside, a division of UnitingCare
Australia. The juvenile justice pilot to be delivered by Mission Australia did not go
ahead.
US
Utah: In August 2013, the Goldman Sachs Urban Investment Group (UIG) together with
the United Way of Salt Lake and J.B. Pritzker formed a partnership to create the first
ever Social Impact Bond designed to finance early childhood. Goldman Sachs and
Pritzker jointly committed up to $7 million to finance The Utah High Quality Preschool
Program, a high impact and targeted curriculum focused on increasing school readiness
and academic performance among at-risk 3 and 4 year olds in Utah. As a result of
entering kindergarten better prepared, it is expected that fewer children will use special
education and remedial services in kindergarten through 12th grade, which results in
cost savings for school districts, the State of Utah and other government entities. The
Page 90 of 140