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Social Impact Finance for Early Childhood Development Feasibility Analysis Conference of Early Childhood Social Impact Performance Advisors Charlotte,

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Presentation on theme: "Social Impact Finance for Early Childhood Development Feasibility Analysis Conference of Early Childhood Social Impact Performance Advisors Charlotte,"— Presentation transcript:

1 Social Impact Finance for Early Childhood Development Feasibility Analysis Conference of Early Childhood Social Impact Performance Advisors Charlotte, North Carolina March 27-28, 2014 Janis Dubno, M.B.A. Voices for Utah Children

2 Early Childhood Social Impact Finance Feasibility  Indentify programs and models that are improving outcomes and reducing short and long term remediation costs.  Longitudinal outcomes and cost avoidance data and systems.  Independent evaluation.  Determine the potential economics of an investment.

3 Early Childhood Social Impact Finance Economics  There are three important relationships in a Social Impact Finance project for high quality prekindergarten:  (1) the ratio of the cost of the intervention (prekindergarten) to the cost of the remediation (special education).  (2) the ratio of intervention impact to non-intervention impact.  (3) the combination of private investor funding, state funding, and federal funding for PFS scholarships for economically disadvantaged children to attend high quality prekindergarten.

4 The Utah Social Impact Loan for High Quality Preschool The Process  Partnership with the United Way of Salt Lake (UWSL) and Granite Preschool Services. Philanthropic relationship between UWSL and Goldman Sachs Bank.  The Sustainable Financing Model for High Quality Preschool :http://www.utahchildren.org/issues/early-care-and-education  Longitudinal research quantifying cost avoidance in special education and academic performance outcomes.  Demonstration of the economics of an potential investment and the collaboration with Goldman Sachs and Imprint Capital.

5 The Utah Social Impact Loan for High Quality Preschool Overview  Lenders: Goldman Sachs Urban Investment Group is the senior lender; J.B. Pritzker is the subordinated lender.  Providers: Granite School District, Park City School District, the Guadalupe School (charter), YMCA (non profit), Childrens’ Express ( daycare center). Lit’l Scholars (daycare center).  The United Way of Salt Lake and Salt Lake County capitalized a repayment fund to repay the investors based on special education cost avoidance.  The United Way of Salt Lake is the intermediary.

6 The Utah Social Impact Loan for High Quality Preschool Overview  Through 6th grade: Success payments, equal to 95% of special-education cost avoidance, will be used to pay 5% annual interest and repay senior and subordinate debt principle.  After debt principle and interest have been repaid, investors receive "Success Fees" equal to 40% of special-education cost avoidance but only through 6th grade.  After 6th grade: 100% of all special-education cost avoidance will be retained by Utah

7 Social Impact Finance and Early Childhood Development ReadyNation Working Paper  “Financing Human Capital Development for Economically Disadvantaged Children: Applying “Pay for Success” Social Impact Finance to Early Childhood Development” Ready Nation Working Paper: authors: Janis A. Dubno, Robert H. Dugger, and Michele R. Smith  Link to the full paper Dubno%20Dugger%20Smith%20Paper% pdf Dubno%20Dugger%20Smith%20Paper% pdf

8 Contact Information Janis Dubno, M.B.A. Voices for Utah Children Early Childhood Senior Policy Analyst (801)


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