2/15/2011                                                  Rockefeller Foundation Sees Social-Cha…        Dow Jones Reprin...
2/15/2011                                 Rockefeller Foundation Sees Social-Cha…      about the bonds. After gathering re...
2/15/2011                            Rockefeller Foundation Sees Social-Cha…              BROADWAY                       B...
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Rockefeller Foundation Sees Social Change Dividend

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Rockefeller Foundation Sees Social Change Dividend

  1. 1. 2/15/2011 Rockefeller Foundation Sees Social-Cha… Dow Jones Reprints: This copy is f or y our personal, non-commercial use only . To order presentation-ready copies f or distribution to y our colleagues, clients or customers, use the Order Reprints tool at the bottom of any article or v isit www.djreprints.com See a sample reprint in PDF f ormat. Order a reprint of this article now NY CULT URE FEBRUARY 15, 2011 Rockefeller Foundation Sees Social-Change Dividend By SH EL L Y BAN JO The Rockefeller Foundation is banking on paying for social change that works. To that end, the foundation will this week announce a $400,000 grant to the Nonprofit Finance Fund, a nonprofit financing organization, for a number of projects that will help bring the concept of so-called social- impact bonds to the U.S. Originating in the U.K., social-impact bonds encourage private investors and philanthropic foundations to fund privately managed social programs in areas such as health care and prisoner recidivism. If the programs succeed in reaching previously set targets—and social outcomes improve—investors receive so-called success payments from the government. If the programs dont work, the government pays nothing. In these scenarios, investors take on all the risk and the government pays only for programs that work. "When money is tied to outcomes, rather than inputs, it increases the efficiency of how taxpayer money is used and steers more money toward nonprofits that are successful," says Antony Bugg-Levine, a managing director at Rockefeller. ANTONY BUGG-LEVINE In January the Rockefeller Foundation closed on a $500,000 investment in a social-impact bond structured by Social Finance Ltd., a UK-based organization that launched the first social-impact bond in the criminal-justice sector in order to reduce the rate in which prisoners go back to prison. Ideas behind these bonds have since begun to garner attention in the rest of the world: Currently, the White House is working on a $100 million pilot program to launch social-impact bonds. After working with U.K. based organizations, the Rockefeller Foundation wants to help bring these ideas to the U.S. as part of two initiatives the foundation began in 2007 and 2008 with more than $54 million to find ways that for-profit investors can put their capital to work to address social and environmental challenges. "There simply isnt enough money in philanthropy and government alone to solve the problems that need to be solved," Mr. Bugg-Levine says. "Theres $80 trillion in for-profit capital markets and we believe theres huge potential in unlocking some of that money and deploying it to solve social problems." The Nonprofit Finance Fund, a community-development financial institution thats lent more than $200 million to nonprofits and provided $26.5 million in loan guarantees and grants to charities, will be tasked with the research and development of how social impact bonds could work in the U.S. This month the group launched a new online platform for funders, nonprofits and educators to share ideas…wsj.com/…/SB1000142405274870358… 1/3
  2. 2. 2/15/2011 Rockefeller Foundation Sees Social-Cha… about the bonds. After gathering research and opinions, they will conduct a feasibility study of the bonds in the U.S. and identify opportunities where the financing structure could work. "Were talking to local governments, nonprofit providers and philanthropists—a three-legged stool of what you need on the ground to launch these models," says Kristin Giantris, Vice President of the Northeast Region at the Nonprofit Finance Fund. Write to Shelly Banjo at shelly.banjo@wsj.com Copyright 2011 Dow Jones & Company, Inc. All Rights Reserved This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law . For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit w w w .djreprints.com UPCOMING CONCERTS: CONCERT Lady Gaga Monday February 21, 2011 at 8:00 pm GET TICKET S » CONCERT Bon Jovi Saturday March 5, 2011 at 7:30 pm GET TICKET S » CONCERT Bon Jovi Thursday February 24, 2011 at 7:30 pm GET TICKET S » CONCERT Bon Jovi Friday February 25, 2011 at 7:30 pm GET TICKET S » CONCERT Rascal Flatts with Luke Bryan Friday February 25, 2011 at 7:30 pm GET TICKET S » See More Concerts From Seat Geek » IN THEATERS CURRENTLY: BROADWAY BROADWAY The Lion King The Phantom PURCHASE TICKETS » of the Opera PURCHASE T ICKETS »…wsj.com/…/SB1000142405274870358… 2/3
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