On target: The first German Social Impact Bond is completed
We are pleased to announce that the first German Social Impact Bond reached all of its predefined objectives. In his final report, the independent evaluator confirmed the fulfillment of all defined criteria concerning the predefined number of participants from the target group.
The pilot project that was initiated by the Bavarian State Ministry of Labor, Social and Family Affairs, and Integration (Bayerisches Staatsministerium für Arbeit und Soziales, Familie und Integration) together with Juvat gemeinnützige GmbH, a non-profit subsidiary of Benckiser Stiftung Zukunft, comes to a close: The upfront financiers are being reimbursed for their funding, plus the agreed amount of interest, by the public sector, which means the funds can once again be put to further good use. Due to the not-for-profit status of all upfront financiers, the funding must be reinvested for new charitable projects. As a result, the circle of upfront funding, repayment in case of proven success, and reinvestment of funding for charitable projects has been established. This model has the potential to contribute to a more impact-orientated funding within the soical sector.
The key results of the Social Impact Bond project are summarized in the following overview.
The Bavarian State Ministry of Labor, Social and Family Affairs, and Integration released a press statement on the finalization of the Social Impact Bond project. You can find the text in German here.