Potential for TRF Involvement— This report
will describe the SIB model, assess its strengths and
weaknesses, and offer suggestions to The Reinvestment
Fund (TRF) on ways in which it could potentially
become involved in a SIB. It will argue that health care
programs offer an ideal window for TRF to enter the
SIB market. TRF can become involved in a SIB initiative
that overlaps with the organization’s policy priorities,
such as healthcare.
Because successful SIBs require experienced nonprofit
organizations and government agencies that are
willing to provide financial backing, this report briefly
undertakes a review of the potential for SIBs in Maryland,
Pennsylvania, and New Jersey. It also examines different
roles TRF could play in a potential SIB agreement.
TRF could choose to invest in a social impact bond
by providing much-needed capital to service providers
attempting to achieve the objective articulated by the
sponsoring government agency. TRF could coordinate a
SIB as its intermediary. If TRF chose this role, it would
be responsible for raising capital as well as choosing and
supervising service providers. The final role in which
the report envisions potential TRF involvement is as
an evaluator, providing an independent assessment of
progress towards the SIB’s goal on which will determine
if investors are paid. The report also will discuss the
advantages and disadvantages of each role with respect
to TRF’s particular goals and unique skills.