SOCIAL IMPACT BONDS
A Social Impact Bond (SBI) is a tool for financing programs that address social problems effectively, based on the principle of "pay for success". The bonds raise funds from investors who are interested in social return alongside financial return; if the program reaches the pre-defined goals, the investors are paid by the public body that benefits, for example when it has to spend less on future intervention.
Aiming to advance the field of impact investments in Israel, and social impact bonds in particular, a joint initiative with Social Finance Israel is carrying out feasibility studies to identify social issues that can be addressed through the SIB model. In addition to facilitating the development of innovative solutions, the initiative can pave the road for more players to join in. SFI will develop the bonds for issues that are found to be suitable and will manage their implementation.
In view of the alarming statistic regarding the high poverty rate among single-parent families in Israel, the first feasibility study deals with this issue. Specifically, the study focuses on the 17,000 families who get an alimony allowance from the National Insurance Institute, and represent the most deprived single-parent families. To improve their situation, the intervention will be designed to remove obstacles to gainful employment and improve the earning capacity of the mothers