Social Impact Financing Forum

TUESDAY, APRIL 12, 2011 
Social Impact Financing Forum:
Can We Generate Economic Value by Creating Social Good*

Our current economic and political environment has created pressure for continued innovation and government redesign. Among current efforts are human capital performance bonds, also referred to as “pay for success.” These efforts provide a financing system that attracts new investment capital while also holding providers (often nonprofit agencies) and government accountable for generating quantifiable economic value from social programming (Rothschild, MN Journal). Proponents claim these bonds catalyze positive cycles of government spending, improve social outcomes and accountabilities, and reduce costs. Opponents charge these efforts are unfeasible given the high amounts of capital needed, warn these bonds could replace current government funding, and operate under economic assumptions inapplicable to government and nonprofit organizations.  Can we generate economic value by creating social good? 

This forum featured a moderated discussion with four distinguished panelists on the topic of Social Impact Financing. The session provided a background of human capital performance bond and an overview of current efforts to advance the effort, both in MN and nationally. Panelists delved into the benefits and cautions of these potential efforts, highlighting the impact from both the state and nonprofit perspectives.  

This event was made possible by a generous grant from Susan and Bert Gross.

Panelists:
- Steve Rothschild, founder and president of Invest in Outcomes, and founder of Twin Cities RISE
- Susie Brown, public policy director at Minnesota Council of Nonprofits
- Jay Kiedrowski, senior fellow at HHH, and former commissioner of finance
- Isaac Wengerd, Office of Economic Opportunity, DHS

Moderator: Jodi Sandfort, Humphrey School faculty and chair of the leadership and management area

(Flickr Commons image by AMagill)