SOCIAL FINANCE INC
10 MILK STREET NO 1010, BOSTON, MA 02108 www.socialfinance.org

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Organizations Filed Purposes: SOCIAL FINANCE IS DEDICATED TO MOBILIZING CAPITAL TO DRIVE SOCIAL PROGRESS. WE BRING TOGETHER UNCOMMON PARTNERS-GOVERNMENTS, INVESTORS, AND SERVICE PROVIDERS-AROUND A COMMON PURPOSE: TO MEASURABLY IMPROVE THE LIVES OF THOSE MOST IN NEED. CORE TO OUR WORK IS A SET OF INNOVATIVE PAY FOR SUCCESS STRATEGIES AND FINANCIAL INSTRUMENTS THAT DRIVE PUBLIC AND PRIVATE RESOURCES TOWARD PROGRAMS WITH DEMONSTRATED TRACK RECORDS OF ACHIEVING SOCIAL OUTCOMES. IN ADDITION, WE ARE COMMITTED TO MARKET EDUCATION EFFORTS THAT BUILD THE PAY FOR SUCCESS FIELD AND DISSEMINATE OUR LEARNINGS AS PRACTITIONERS.

SOCIAL INVESTMENT - SOCIAL FINANCE DESIGNS, FUNDS, LAUNCHES AND MANAGES PAY FOR SUCCESS (PFS) FINANCING STRATEGIES THAT MOBILIZE PUBLIC AND PRIVATE CAPITAL TO IMPROVE SOCIAL OUTCOMES FOR PEOPLE IN NEED. WE PARTNER WITH GOVERNMENTS, SERVICE PROVIDERS, AND INVESTORS TO DESIGN PROGRAMS, PERFORM DATA ANALYSIS AND EVALUATION, CONDUCT ECONOMIC STUDIES, EXECUTE PFS CONTRACTS, AND ACTIVELY MANAGE FOR PERFORMANCE. TWO OF OUR CORE PFS FINANCING STRATEGIES ARE THE SOCIAL IMPACT BOND AND CAREER IMPACT BOND.SOCIAL IMPACT BONDS (SIBS) AIM TO IMPROVE SOCIAL OUTCOMES BY DRIVING GREATER EFFECTIVENESS OF GOVERNMENT SPENDING. WE RAISE PRIVATE IMPACT INVESTMENT CAPITAL TO SCALE SERVICES DELIVERED BY HIGH PERFORMING NONPROFIT ORGANIZATIONS. INVESTORS ARE REPAID VIA A PERFORMANCE BASED CONTRACT WITH GOVERNMENT IF AND WHEN THE PROJECT ACHIEVES THE PRE-DEFINED SOCIAL OUTCOMES. WE PLAY AN ONGOING, ACTIVE PERFORMANCE MANAGEMENT ROLE FOR EACH FINANCING TO SUPPORT THE ACHIEVEMENT OF PROJECT OUTCOMES. SINCE ITS INCEPTION, SOCIAL FINANCE HAS PLAYED A KEY ROLE IN THE LAUNCH AND ACTIVE MANAGEMENT OF SEVEN SIBS INCLUDING PROJECTS IN DELAWARE, CONNECTICUT, NEW YORK STATE, SOUTH CAROLINA, MASSACHUSETTS, AND CALIFORNIA.THE CAREER IMPACT BOND (CIB) IS A FORM OF INCOME SHARE AGREEMENT WITH A DISTINCT FOCUS ON IMPROVING ACCESS TO HIGH-QUALITY WORKFORCE DEVELOPMENT PROGRAMS FOR LOW-INCOME POPULATIONS. THIS INNOVATIVE PFS FINANCING STRATEGY AIMS TO TRANSFORM ACCESS TO BEST-IN-CLASS TRAINING PROGRAMS BY REMOVING THE UPFRONT COST-BURDEN FOR LOW-INCOME STUDENTS. IN A CIB, INVESTORS COVER UPFRONT PROGRAM COSTS, WHICH STUDENTS REPAY AS A FIXED PERCENT OF THEIR INCOME, ONCE THEY GAIN MEANINGFUL EMPLOYMENT, OVER A FIXED PERIOD OF TIME. UNLIKE TRADITIONAL STUDENT LOANS, CIBS OFFER STUDENT-FRIENDLY TERMS. IN ADDITION TO A MINIMUM INCOME THRESHOLD, THEY ARE TIME-CAPPED AND DOLLAR-CAPPED. SOCIAL FINANCE LAUNCHED ITS FIRST CIB IN 2019.

ADVISORY SERVICES - SOCIAL FINANCE PARTNERS WITH GOVERNMENTS, FOUNDATIONS AND SERVICE PROVIDERS TO ASSESS PROMISING PROGRAMS THAT COULD BENEFIT FROM PFS STRATEGIES AND FINANCING. IN PARTICULAR, WE SUPPORT GOVERNMENT PARTNERS TO TRANSITION TOWARDS OUTCOMES-ORIENTED PROCUREMENT PRACTICES. WE IDENTIFY BEST-IN-CLASS INTERVENTIONS, EXECUTE ECONOMIC ANALYSES, PERFORM DUE DILIGENCE, DESIGN INITIATIVES BASED ON EVIDENCE AND MEASURABLE OUTCOMES, IMPROVE PERFORMANCE THROUGH ONGOING, DATA-DRIVEN MANAGEMENT, AND CONDUCT OTHER ADVISORY ACTIVITIES IN ORDER TO ACHIEVE BETTER OUTCOMES FOR COMMUNITIES IN NEED. IN 2019, SOCIAL FINANCE ADVISED CLIENTS SUCH AS THE UNITED WAY OF GREATER KANSAS CITY, TEXAS EDUCATION AGENCY, , THE TEXAS DEPARTMENT OF FAMILY AND PROTECTIVE SERVICES, AND WASHINGTON STATE HEALTH CARE AUTHORITY. SOCIAL FINANCE ALSO CONTINUED TO ADVISE PARTNERS ON USING PFS THROUGH EXISTING GRANTS FROM THE U.S. DEPARTMENT OF EDUCATION.

MARKET EDUCATION - MARKET EDUCATION - THROUGH RESEARCH, TRAINING, AND PUBLICATIONS, SOCIAL FINANCE SUPPORTS THE DEVELOPMENT OF THE PFS FIELD AND THE BROADER IMPACT INVESTING AND EVIDENCE-BASED POLICY MOVEMENTS. IN 2019, SOCIAL FINANCE PUBLISHED THREE WHITE PAPERS: "AGGREGATING CAPITAL TO ACCELERATE IMPACT," "MAKING ENTRY-LEVEL TALENT STICK, AND "SAILING TO GRADUATION." WE ALSO PUBLISHED SIX MEDIUM POSTS: "UNLOCKING THE POTENTIAL OF PERFORMANCE MANAGEMENT WITH GOODWILL NURSE-FAMILY PARTNERSHIP," "WHAT DRIVES CLIENT SUCCESS IN PAY FOR SUCCESS PROJECTS?," "HOW CAN WE ENCOURAGE GREATER INVESTMENT IN PREVENTION?," "WHY DON'T WE FUND MORE PREVENTION?," "THE ROLE OF SOCIAL RESPONSIBILITY IN GRAPHIC DESIGN, AND "IMPROVING OUTCOMES FOR CHILDREN AND FAMILIES THROUGH PAY FOR SUCCESS." WE DEVELOPED AN DELIVERED A SERIES OF TRAININGS FOR GOVERNMENT AGENCIES IN CALIFORNIA. SOCIAL FINANCE ATTENDED 84 CONFERENCES IN 2019, INCLUDING THE MILKEN INSTITUTE GLOBAL CONFERENCE, THE ASPEN IDEAS INCUBATOR, AND THE APHA ANNUAL MEETING. SOCIAL FINANCE'S WORK TO MOBILIZE CAPITAL TO DRIVE SOCIAL PROGRESS WAS COVERED BY LEADING MEDIA OUTLETS OVER THE COURSE OF THE YEAR, INCLUDING THE BOSTON GLOBE, PHILADELPHIA ENQUIRER, AUSTIN AMERICAN-STATESMAN, AND FAST COMPANY.

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