1. Third Sector Capital Partners, Inc. Boston & San Francisco | (617) 912-8957 | info@thirdsectorcap.org | www.thirdsectorcap.org This document is the property of Third Sector Capital Partners, Inc. (“Third Sector”). It contains confidential, proprietary, trade secret information of Third Sector that must not be reproduced, disclosed to anyone or used for the benefit of anyone other than Third Sector unless expressly authorized in writing by an executive officer of Third Sector. Ready Nation Early Childhood Social Impact Conference Case Study Session March 28, 2014

2. Who We Are - Third Sector Capital Partners, Inc. A nonprofit advisory firm with the mission to accelerate America’s transition to a performance-driven social sector. We work with government, service providers, and investors to develop and implement PFS projects. Focused on creating customized Pay for Success (PFS) and Social Innovation Financing (SIF) solutions such as Social Impact Bonds (SIBs). Two offices in Boston, MA and San Francisco, CA serve an expanding national space for PFS and SIF’s 1

3. PFS National Activity 2 DEVELOPING PROJECTS Requests for Information/Requests for Proposals (RFI/RFPs) South Carolina Washington, DC Denver, Colorado Colorado Illinois Michigan Minnesota Washington State Government Action Connecticut Los Angeles County, CA ACTIVE PROJECTS Cuyahoga County, OH – Family Homelessness & Foster Care Massachusetts – Juvenile Justice & Chronic Homelessness New York –Justice & Workforce Development New York City – Juvenile Justice Santa Clara County, CA – Chronic Homelessness & Mental Health Salt Lake City, Utah – Early Education FEDERAL INTEREST Federal Treasury Department RFI Social Innovation Fund Department of Labor Department of Justice

4. PFS Capital Flow 3 $ $ $

5. Case Study: The PFS/SIF Challenge The State of Inertia Problem and Challenge Break out sessions to evaluate Challenging questions and make Recommendations Four Teams Accept Challenge –Administration and Finance Department of State –The Hard Truth, Social Services Provider –CMO Investment Bank –BigRich Foundation Reconvene for 2 to 5 minute Recommendations to Audience on Structure and Addressing Problem What really Happened? Takeaways for Future for State teams in their own PFS/SIB Projects 4