A Primer on Social Impact Bonds

This guide outlines practical instruments and market-development tactics to grow social finance in Europe. It emphasizes capacity building, investor readiness, regulation, and instrument diversity to strengthen the social finance ecosystem. The paper also provides a critical evaluation of Social Impact Bonds (SIBs) as innovative pay-for-success mechanisms, noting how they shift financial risk to private investors and can generate political support for social interventions.

A New Approach to Funding Social Enterprises

This article proposes using traditional capital structures—like bonds, loans, equity—for social enterprises by treating philanthropic capital as impact-seeking. It emphasizes transparent social outcome measurement and supportive policy frameworks so social enterprises can access mainstream investors. The authors argue these steps can significantly expand the scale and sustainability of impact-driven ventures by unbundling societal benefits and financial returns to attract diverse investment.

Results-based financing

This article explores the concept of Results-Based Financing (RBF) and provides insights into whether organizations should adopt this funding model. It delves into the advantages and disadvantages of RBF, discussing how it shifts focus from inputs to outcomes and its potential impact on incentivizing efficiency and accountability in social programs. The piece aims to guide organizations in making informed decisions about integrating RBF into their funding strategies, considering both its opportunities and challenges in achieving measurable social impact.

A Development Impact Bond to Lift Women Entrepreneurs Out of Poverty

This case study outlines a Development Impact Bond (DIB) structured by KOIS and USAID to support 6,800 rural women through a bamboo value chain program. It highlights the use of results-based financing and how public-private funding partnerships can scale women-led entrepreneurship, aiming to lift women out of poverty. The DIB structure is designed to ensure measurable social outcomes, with returns tied to the achievement of poverty reduction targets through the promotion of entrepreneurship and sustainable development.

222 Million Dreams: a Case for Investment 2023-2026

This case presents a blended finance strategy to support education for 222 million children affected by crises, with a focus on adolescent girls. It outlines key funding priorities, governance structures, delivery models, and SDG alignment for the next four years. The document advocates for inclusive partnerships, gender-sensitive education systems, and scalable solutions in emergency contexts. The plan emphasizes the importance of mobilizing funding for crisis-affected children, ensuring a high-impact, sustainable education system in underserved areas.

8 Mechanisms to Finance Social Innovation

This article discusses eight different financing mechanisms for social innovation, including grants, impact investing, social bonds, crowdfunding, and public-private partnerships. Each mechanism is explained, with pros and cons to help social entrepreneurs select the best funding model based on their goals and context. It provides a comprehensive overview of social finance tools and offers practical insights into how they can be utilised for achieving scalable, impactful change in communities, particularly in social entrepreneurship.

Overcoming the Challenges of Impact Investing: Insights From Leading Investors

This article provides insights from leading investors on overcoming the inherent challenges of impact investing. It addresses issues such as defining and measuring social impact, balancing financial returns with social mission, and fostering effective collaboration among stakeholders. The authors synthesize practical strategies and lessons learned from experienced practitioners, offering guidance on navigating the complexities of this emerging investment field to maximize both social and financial outcomes.

Finance, Social Economics and Community Development

This paper explores the relationship between finance, social economics, and community development, particularly in the context of social enterprises in the United Kingdom. It argues that while social enterprises have been instrumental in welfare delivery, their reliance on social finance can create a tension between achieving financial returns and maintaining community interests. The authors contend that understanding how social finance is utilised, politically domesticated, and contributes to redistributive outcomes is crucial for counter-hegemonic strategies. The paper emphasizes the need to navigate the complexities of marketization while preserving the social mission of community groups.

Place-based Impact Investing: the Case of Social Impact Fund Rotterdam

This case study examines Place-Based Impact Investing through the lens of the Social Impact Fund Rotterdam (SIFR). It explores how focusing impact investments on a specific city or region offers advantages like better risk assessment and local networks. The article discusses SIFR’s approach to dealing with challenges such as impact measurement and balancing financial and impact returns. It highlights SIFR as an interesting financial innovation that fosters collaboration between public and private partners to stimulate local impact.

Development Impact Bonds Targeting Health Outcomes

This case study from the Center for Global Development focuses on Development Impact Bonds (DIBs) specifically targeting health outcomes. It details the mechanism of DIBs, outlining the roles of various stakeholders involved in their implementation. The study explores how DIBs can mobilise private capital for public health interventions, emphasizing results-based financing to achieve measurable improvements in health indicators. It provides practical insights into the design and operational aspects of DIBs in the health sector.
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