The PC Caucus today made Social Impact Bonds (SIBs) a part of their policy to improve outcomes of front line social services through innovative financing options for non-profit groups in Manitoba.
A PC Government would enter a contractual agreement with an intermediary that administers the SIB. The intermediary is responsible for identifying private investors, raising capital, and hiring and managing non-profit service providers. If the project achieves the specified objectives, the government then repays the investor’s capital contribution plus an agreed-upon return.
“We want to measure what really matters, by leveraging private-sector and non-profit expertise, and rewarding meaningful outcomes,” said PC Leader Brian Pallister. “Rather than reacting to issues after they reach the crisis level we need to address the underlying causes, and reward measurable and meaningful success,” Pallister said.
Typically, social service agencies measure the number of people served as opposed to how well the program addresses the social problem creating the need. SIBs are outcome-based – the level of success achieved determines return on investment, so outcomes must be precisely defined and measurable. SIBs allow government to target innovative preventative services to improve social outcomes. They build on current social services programming and do not replace it.
“We need to encourage non-profit groups to do what they do best – help people,” Pallister said.