From Potential to Action: Bringing Social Impact Bonds to the US

March 6, 2013

Haas School of Business, UC Berkeley

Schwab Charitable Philanthropy Speaker Series: Social Impact Bonds

Social Impact Bonds (SIBs) are at the forefront of financial innovation for scaling proven social impact programs. Laura Callanan, author of McKinsey & Company’s ground-breaking report on SIBs, will examine this new outcome-based approach to scaling and the role played by each stakeholder group: government, nonprofits, impact investors, and evaluation advisors. Carla Javits, CEO of REDF, will discuss her organization’s proposal to implement a pay for success program in California.

There is considerable buzz about whether this new “pay for success” financial model could work in the US. McKinsey & Company’s new report, “From Potential to Action: Bringing Social Impact Bonds to the US” will be presented by Laura Callanan, the new Haas Scholar in Residence at the Center for Nonprofit and Public Leadership. SIBs were pioneered in 2010 by Social Finance UK, led by Director, Emily Bolton (Haas MBA 05), a former REDF strategy consultant. Despite its name, a SIB is not a bond. It is a multistakeholder partnership in which philanthropic funders and impact investors-not governments-take on the financial risk of expanding preventive programs that help poor and vulnerable people. Nonprofits deliver the program to more people who need it; the government pays only if the program succeeds.

Additional resources:
Download the McKinsey Report: From Potential to Action

Learning for Social Impact: What Foundations Can Do

Rockefeller Foundation: Harnessing the Power of Impact Investing

Powerpoint Presentation by Carla Javits, President of REDF

From Potential to Action: REDF’s Pay for Success Proposal from Center for Nonprofit and Public Leadership

Event Photos

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Speakers:

Laura CallananLaura Callanan is a Haas Scholar in Residence and was a consultant with McKinsey & Company where she was the lead author of From Potential to Action: Bringing Social Impact Bonds to the US, the most comprehensive report on this new public-private approach to scaling social services. Working on social impact assessment, Laura authored Learning for Social Impact: What Foundations Can Do. She was also primary investigator on a study Supporting Leaders Who Scale What Works, which looks at the capabilities and opportunities social sector leaders need to succeed. Prior to joining McKinsey, Laura served as Senior Adviser at the United Nations Development Programme , Executive Director of The Prospect Hill Foundation, and Associate Director at The Rockefeller Foundation where was also a member of the Program Venture Experiment (ProVenEx) commitment committee she oversaw investment decisions for program-related investments.

Carla JavitsCarla Javits is the President of REDF which provides equity-like investments and business assistance to create and grow ‘double bottom line’ enterprises operated by nonprofits that create jobs in order to employ people who face high barriers. The people employed learn and earn, while the nonprofit brings in business income that makes the enterprise sustainable. Prior to joining REDF, Carla directed the California expansion of the Corporation for Supportive Housing (CSH) and then became CSH’s national President and CEO, helping to build and transform the field of service-enriched housing which has ended homelessness for tens of thousands of people. Previously, she was a Program Analyst with the California Office of the Legislative Analyst, and was Director of Policy and Planning for the San Francisco Department of Social Services. She holds a Masters of Public Policy and BA from the University of California, Berkeley.

This Schwab Charitable Philanthropy Speaker Series is co-sponsored by:

HAAS INVESTMENT CLUB
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