A Decade of Impact

A Message from Our CEO

Ten years ago, we saw an opportunity to harness the impact investing movement and build new tools at the intersection of the capital markets and public policy to deliver better outcomes for our communities. We’ve made strong progress since, from launching our first Social Impact Bond and establishing our advisory practice, to unlocking donor-advised funds, pioneering the Career Impact Bond, and creating new graduate school loan options for DREAMers.

In our impact investing work, we see finance as a means for improving lives. Building investments that achieve real impact compels us to focus on what matters: not the number of people served or the deals formed, but the lives transformed.

In our advisory work, we support all types of organizations who strive to strengthen the social infrastructure for the communities they serve. We’ve helped shine a light on how sophisticated evaluation, contracting, and funding can unleash the ingenuity of the public, private, and social sectors.

Of course, we couldn’t do this work without you. To our many colleagues and supporters from corporate, government, nonprofit, and philanthropy over the years, we’re thankful for your partnership.

We look forward to the next decade, as we continue to help build a world where our economic and social systems enable all people to thrive.

Photos by Brian Kaiser of The New York Times, Erin Clark and Jim Davis of The Boston Globe, and JVS.

With gratitude,

Tracy Palandjian
CEO & Co-Founder
Photos by Brian Kaiser of The New York Times, Erin Clark and Jim Davis of The Boston Globe, and JVS.
Impact by the numbers
$100M
in capital mobilized
10,000
people served
100
project partners across the public, private, and nonprofit sectors
10
team members
Milestones in social finance history
Social Finance is founded in Boston
2011
First Social Impact Bond in New York State
2013
Public Sector Advisory Practice established
2014
Austin office opens
2015
Massachusetts Pathways, the first Social Impact Bond to engage donor-advised fund capital, launches
2017
San Francisco office opens
2017

Congress passes Social Impact Partnerships to Pay for Results Act (SIPPRA)

2018

First outcomes rate card in the U.S.

2018
First Career Impact Bond
2019
UP Fund launches to scale Career Impact Bonds
2019
Donor-advised fund, recoverable grant pilots go live
2020

DREAMer Fund launches

2021

Workforce Realigned is published with Federal Reserve Banks of Atlanta and Philadelphia

2021

Washington, D.C. office opens

2021
HIGHLIGHTS

Select to jump to an issue project area:

Economic Mobility

The UP Fund

Launch date

2019

Key partners

Acuitus, Alchemy Code Lab, American Diesel Training Centers (ADTC), General Assembly, Blue Meridian Partners, John D. and Catherine T. MacArthur Foundation, Michael & Susan Dell Foundation, Pershing Square Foundation, and the W.K. Kellogg Foundation.

The work

Social Finance collaborated with impact investors to create the UP Fund, a $50 million portfolio of 8-12 Career Impact Bonds aiming to provide financing and supportive services to help individuals achieve increased economic mobility.

The impact

6,000+ people facing barriers to education and employment across the U.S. will gain access to career training through partnerships with training providers.

Photo by General Assembly.

Massachusetts Pathways to Economic Advancement Social Impact Bond

Launch date

2017

Key partners

The Commonwealth of Massachusetts, Jewish Vocational Service (JVS), and more than 40 impact investors.

The work

Social Finance collaborated with partners to design and manage Massachusetts Pathways, a Pay for Success initiative to help immigrants and refugees in the Boston area access language and job training to move up the economic ladder.

The impact

1,800 people representing 90+ countries of origin and speaking 60+ native languages gained access to language and job training. Participants in the English for Advancement track, one of the initiative’s four programs, earned an average of $3,505 more annually versus the control group.

Photo by JVS.
“Programs like Massachusetts Pathways and Veterans CARE illustrate our administration's focus on making smart investments in promising evidence-supported programs coupled with rigorous evaluation of results.”

Charlie Baker, Governor, Commonwealth of Massachusetts

Pay It Forward Funds

Launch date

2021

Key partners

Six states and counting across the U.S., workforce training partners, and employers.

The work

Social Finance is partnering with governors across the country to develop Pay It Forward Funds that align state economic development and workforce development agendas, and prepare workers for jobs of the future.

The impact

The project aims to help states better align public spending with worker outcomes; create stronger connections between employers, training providers, and students; and recycle funds to train future generations of workers.

Photo by Chevanon Photography.
“I would like to see Career Impact Bonds and other Social Finance tools be part of the ordinary course for governments, for employees, and for employers to use to have a greater impact on the work that they're doing today.”

Ed Shapiro, Trustee, The Shapiro Foundation

DREAMers Graduate Loan Program

Launch date

2021

Key partners

TheDream.US, Donald Graham, Ford Foundation, and various grantors and impact investors.

The work

Social Finance is partnering with TheDream.US, a college access and success program for immigrant youth, to develop a $100 million graduate school loan program for students who want to pursue professional degrees but can’t access federal programs due to their immigration status.

The impact

The program aims to provide loans to over 1,000 students over the next five years.

Photo by TheDream.US.
“Our program helps DREAMers fulfill their life’s ambitions but that is not all. It will help diversify the medical, legal, and business professions. Thanks to Social Finance, thousands of DREAMer college graduates will have a chance to become doctors, lawyers, teachers, and much more.”

Donald Graham, Chairman of the Board, Graham Holdings Company

Children and families

Texas Prevention and Early Intervention Program

Launch date

2018

Key partners

The Texas Department of Family and Protective Services (DFPS) and the Episcopal Health Foundation.

The work

Social Finance designed and helped implement a quality incentive project in which service providers supporting DFPS’ Prevention and Early Intervention program can be rewarded for achieving priority outcomes.

The impact

Improved early childhood support services for more than 42,000 Texas families.

Photo by Kelly Sikkema.
“The Social Finance team helped us operationalize tools to analyze and understand outcomes for our nine diverse programs that serve almost 60,000 children and youth every year. From design to implementation, they provided consultation and technical assistance that has been professional and specialized.”

Sarah Abrahams, Deputy Associate Commissioner, Prevention and Early Intervention, Texas Department of Family and Protective Services

First 5 Riverside

Launch date

2017

Key partner

Riverside County, California Children and Families Commission.

The work

Social Finance worked with First 5 Riverside to increase access to home developmental screenings and behavioral health services for children, address program funding challenges, and incentivize better service provider performance.

The impact

Improved home visiting services for more than 1,400 parents and 650 children.

Photo by Gabe Pierce.
“Social Finance has been a great asset in helping us develop a pilot scorecard relating to our home visiting programs. The team guided our collaborative efforts and helped us to develop improved communication strategies with our existing partnerships, which also support how we engage with future partnerships as well.”

First 5 Riverside

Connecticut Office of Early Childhood Outcomes Rate Card

Launch date

2017

Key partners

Connecticut Office of Early Childhood (OEC) and The Hartford Foundation for Public Giving.

The work

Social Finance created an outcomes rate card to incentivize service provider performance through bonus payments for achieving full-term births, family stability, caregiver employment, and other positive outcomes.

The impact

Improved early childhood support services for more than 2,600 families in Connecticut.

Photo by Madonna Place.
“The partnership with Social Finance has provided OEC the opportunity to implement multiple iterations of the outcomes rate card, and realign and renew the agency's vision for the evidence-based home visiting program. OEC is grateful for Social Finance’s vision, collaboration, and support. We look forward to many more years of partnership.”

Ashley McAuliffe, Family Support Division Director, Connecticut Office of Early Childhood

Homelessness

Home for Good Pay for Success Project

Launch date

2019

Key partners

Municipality of Anchorage, Alaska, and United Way of Anchorage.

The work

Social Finance brought together United Way of Anchorage and 20+ government, nonprofit, and philanthropic organizations to launch and manage a Pay for Success project to help residents of Anchorage experiencing homelessness access permanent housing and supportive services.

The impact

The project aims to house 150 Anchorage residents experiencing homelessness, with a particular focus on Alaska Natives.

Photo by United Way of Anchorage.
“The full consequences of extreme trauma, untreated severe mental illness, fetal alcohol spectrum disorder, physical disabilities, or addiction don’t develop overnight and won’t end overnight. Lasting improvement is a long journey. And the data we now have confirms we are on the right path.”

Mike Abbott, CEO, Alaska Mental Health Trust Authority
Paul Hollie, Premera Social Impact
Diane Kaplan, President & CEO, Rasmuson Foundation
Preston M. Simmons, CEO, Providence Health and Services Alaska

Homelessness in Ventura County

Launch date

2019

Key partners

Ventura County, California; the City of Oxnard, California; and the City of Ventura, California.

The work

Social Finance worked with public officials across 13 county and city departments to analyze public service usage data linked to persistent homelessness and examine existing costs and overlaps to shape future prevention efforts.

The impact

The analysis was used to design a supportive housing proposal and helped Ventura County win a $2.2 million grant from the U.S. Department of Justice and earn a finalist spot for a $3 million award from the U.S. Department of the Treasury.

Photo by Dimi Katsavaris.
“To meaningfully address persistent homelessness, we have to first understand its human and economic costs. Social Finance helped us do that in Ventura County, collecting and contextualizing key data to help us inform future discussions on ending homelessness.”

Christy Madden, HUD Program Manager, Ventura County, California

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