Social Impact Bonds: A Terrible Public Policy Idea
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DAVID MACDONALD CANADIAN CENTRE FOR POLICY ALTERNATIVES FAMILY SERVICE ONTARIO MAY 7 TH , 2013 Social Impact Bonds: A Terrible Public Policy Idea …and why they might be right for you
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Social Impact Bonds: A Terrible Public Policy Idea. …and why they might be right for you. David Macdonald Canadian Centre for Policy Alternatives Family Service Ontario May 7 th , 2013. Need for Social Services: OW & ODSP. Need for Social Services: Employment. - PowerPoint PPT Presentation
Transcript of Social Impact Bonds: A Terrible Public Policy Idea
DAVID MACDONALDCANADIAN CENTRE FOR POLICY
ALTERNATIVESFAMILY SERVICE ONTARIO
MAY 7 T H , 2013
Social Impact Bonds:A Terrible Public Policy Idea
…and why they might be right for you
Need for Social Services: OW & ODSP
Need for Social Services: Employment
Need for Social Services: EI Coverage
Social Services Resources: Charitable Donations
Social Service Resources: United Way
How are corporations doing
The Corporate Cash Hoard
Might corporations move?
Social Impact Bonds in Canada
Federal Government, Nova ScotiaJobsNow in Ontario“in 2006 and I asked the Department how
many homeless we had in this country…I was told 150,000. Three years later … I asked again how many homeless and was told 150,000. Good work had been done – but no real dent had been made.” Minister Finley -- Social Impact Forum Nov 8, 2012
Philanthropy vs. Social Impact Bonds
Social Service Agency
Philanthropist
$10K donation
Government
Don’t pay $2,600 in tax
Financier
Social Service Agency
$10K Social Impact Bond
Government
$11,300 ($10K principal + 13% profit)
SIB proposed benefits
Risk transferEncourage innovative programsAssured government savingsIncreased social services funding
Why SIBs might be right for you
The risks are much higher
