The Innovations on Social Finance Conference was a fascinating overview on new methods and formulas to rethink how Connecticut funds its social services. The focus is on being more effective, and being able to use smart, targeted investments to make every single count. You can watch the full conference below, as covered by CT-N:
As state budgets shrink and the demand for social services grows, a group of Connecticut nonprofit organizations are searching for ways to serve an increasing demand with fewer and fewer funding sources.
Things look bleak, but Liz Dupont-Diehl, policy director for the Connecticut Association for Human Services, sees a possible light at the end of the tunnel.
The sustained economic recession is forcing nonprofits and other social service organizations, including the state, to think outside the box when it comes to funding mechanisms. One of those outside-the-box ideas is called “social impact bonds.”
With a social impact bond, a private investor puts money toward preventative services and gets money back when and if outcomes are produced. Financial returns to investors are made by the public sector on the basis of improved outcomes. The bonds have been the subject of experiment in the United Kingdom as well as New York and Massachusetts.