Social Finance Israel

Social Finance Israel Connecting social and financial returns to deliver better social outcomes and improve lives Co-Founders Glazer Foundation | Portland Trust | Skoll Foundation | Yad Hanadiv Sir Ronald Cohen | Yitzhak Danziger | Dori Klagsbald | Benny Levin | Yaron Neudorfer | Chemi Peres

may, 2016

2 EO'S STATEMENT C

Dear friends,

It has been less than three years since we co-founded Social Finance Israel to be a leading impact investment intermediary. During this time we have made significant progress in pushing forward the impact investment movement in Israel.

As this idea is innovative and unfamiliar to many, market education was one of the primary goals, bringing all the various possible stakeholders to understand and engage in. We have participated in many public forums, spoken with senior government officials and ministers, brought academia on board and made some important appearances in the media. The effort was fruitful and awareness and involvement is gaining momentum and social impact investment is now closer to center stage.

Our primary effort is behind Social Impact Bonds (SIBs) – pay for success securities - to become a common tool to alleviate social issues and improve people’s lives. To date, we have completed the first SiB in Israel, dealing with dropouts from computer studies in higher education. This is the first SiB in the world to address this important area for realizing human potential. More recently, Yaron Neudorfer we signed and launched marketing for the second one, a SiB to CEO Social Finance Israel prevent pre diabetics (type 2) from becoming diabetics. This is a ground-breaking SiB that has generated wide interest globally, since type 2 diabetes is the 21st century epidemic, and if successful, it will hopefully lead to worldwide replication. We are working on several more SiBs including in the fields of prisoner recidivism, increasing excellence in math studies at high school and employment for underserved populations. We have managed to bring on board several government ministries to support our efforts and to pay for the outcomes achieved by these SiBs. We are most grateful to our partners in establishing Social Finance; the Portland Trust which incubated and led the initiative, Yad Hanadiv (the Rothschild Foundation), the Skoll Foundation, the Glazer Foundation, and the JDC. We are also very proud of our partners in the first SiB, the RothschildCaesarea Foundation, Bank Leumi and the Lieberman family’s Beyond Family Office. UBS is acting as our partner in exposing selected clients in Israel and abroad to the type 2 diabetes SIB. I invite you to partner with us, to help make impact investment a powerful force, capable of allocating significant resources for the wellbeing of the people of Israel.

With all my best wishes,

Yaron Neudorfer CEO Social Finance Israel

3 CHAIRMAN STATEMENT

Dear All,

The past three years or so have seen tremendous effort on the part of our team to establish Social Finance Israel as a leading impact investment intermediary and to launch the first Social Impact Bonds in Israel.

Perhaps the best evidence that we have achieved this is that we are being asked to advise foundations and other institutions on social impact issues, feasibility and market opportunity. We consider this important both in positioning SFI as the leading expert in the field and for increasing our independent revenue base, so as to sustain our activities fully within the next few years.

After contributing to the work of the G8 Taskforce, Israel was Ronald Cohen Chairman admitted as a member of its successor organization, The Global Impact Investment Steering Group (GSG), which I am proud to lead. Together with Prof’ Yossi Tamir, Yaron Neudorfer leads the Israeli National Advisory Board to the GSG. 2015 also saw the establishment of the Social Finance global Network which includes the SF entities in the UK, USA and Israel, to share knowledge and bring best practice to its members and to other parts of the world.

In the three years to come SFI intends to launch more SiBs in cooperation with the Israeli government, opening the market for institutional investors, advocating tax benefits for individuals investing in SiBs, and helping to establish an impact capital wholesaler similar to the UK’s Big Society Capital.

We plan to play a role in helping shape the sector, assisting social sector organizations and others to improve their readiness for impact investment and contributing to the innovation required in order to tackle social issues globally. And our team will grow to support this ambitious plan.

I hope you will be pleased, as I am, by the review that follows. My thanks go to the team of our cofounders, Yad Hanadiv (the Rothschild Foundation), the Skoll Foundation, the Glazer Foundation, the JDC and The Portland Trust, we would not be here without your active support to our board members, for their enthusiastic and energetic role in facilitating our progress; and to our pioneering team led

by Yaron. This is just the beginning of our efforts to make a real improvement in Israeli lives.

We look forward to continuing our partnership as we expand our team and activities over the next three years.

Sir Ronald Cohen Chairman

OUR THEORY OF CHANGE 4

Creating ways of connecting social and financial returns in order to deliver better social outcomes

5

INPUTS

ACTIVITIES

OUTPUTS Increasing knowledge about social issues

Staff, research resources, legal efforts

Developing Social Impact Bonds to tackle social issues

Developing (other) impact vehicles

Improved social outcomes

New and innovative social impact investing (SII) models

Economic benefits for government

Leverage philanthropic resources to attract private capital

New investors to SII products Advising on impact strategies and impact investment structures Global Network and GSG membership Market education through research, communication and advocacy

IMPACT

Designing interventions based on best practice

Effective impact measurement

Communications and events

OUTCOMES

Impact assessment and design of impact strategies for major players Improved government provision of social services

Partnerships

More players enter SII

Policy changes to support growth of the SII market and delivery of social outcomes

Increasing SII market size and creating new capital sources for the social sector, and increasing the positive impact of public services on people’s lives

6

SFI So Far Social Impact Bonds

Some of which are globally replicable

2 launched

4 in development

Ultra-Orthodox education & employment

Arabs education & employment

Understand

Improving K-12 Math skills

Design

600

2,250

Students at risk of dropping out from higher education

High risk Pre-diabetics

Social Finance Israel has mobilized over

$8 Million of social investment to support

1,000

Affordable micro loans

7

Reducing recidivism

Reducing dropouts from higher education

Reducing type 2 diabetes

Execute

Delivering Advisory Services

Deliver

Changing Policy

Impact market research and feasibility studies

Enabling a supportive tax structure for SIBs in Israel

Facilitating impact assessment to support impact strategic planning by foundations

Encouraging the establishment of an impact investing wholesaler, funded by unclaimed assets and dormant accounts

Social Impact Vehicles Co-mingling funds to support micro-finance for women entrepreneurs Emergency loans fund for non-profits

Establishing an influential national advisory board on social impact investing for Israel

Market Education Generating positive conversation around Impact investing

8

Social Impact Bonds

S oc ial I m pac t Bon d s In October 2015 SFI launched the first Social Impact Bond in Israel, aimed at reducing dropout rates from computer science in higher education A pool of diversified investors paving the way for many investors to familiarize themselves with SIBs

$2.1 M

Capital Raised

SFI's SPV

Service Provider

The SIB targets a 36% reduction in drop out rates; resulting in a 5% return to investors (target IRR).

Outcome funders

600

Students Emanuel Bohbot Senior Associate

We have been privileged to launch the world's first Social Impact Bond in the field of higher education. This innovative SIB is based on rigorous data analysis and a tailor made solution for each academic institution. Its methodology can be easily duplicated and implemented in countries wishing to tackle this issue.

9S o c i a l I m p a c t B o n d s

In March 2016 SFI launched the first Social Impact Bond to prevent of a chronic disease that affects around 10% of the world’s population – Type 2 Diabetes The capital is being raised with the assistance from UBS, exposing the product to its unique clientele

$5.4 M

Capital Raised

SFI's SPV

Service Provider

The SIB targets a 50% risk reduction resulting in a 6.5% return to investors (target IRR).

Outcome funders

2,250

Ilya (Luka) Skorochod

High-risk pre-diabetics

Senior Associate

This SIB showcases the potential afforded by SIBs to address and improve health related outcomes, a source of innovation in the delivery of services aimed at tackling a global epidemic, and a catalyst for realigning healthcare expenders to focus on the prevention rather than the management of complications.

Social Impact Bonds

10

In addition to the SIBs launched by SFI, there are 4 other SIBs in different stages of the SIB development process

Action

Identifying the issue

Understand

Target population Assessing interventions Devising a social intervention strategy Assessing stakeholder engagement Valuing the outcome

Design

Full intervention & operating model Measurement metrics and control Financial model and structure

Execute

Choosing service providers Investors Capacity building

Deliver

Contracting/ procurement Performance management Governance Recalibration

Dropout rates from higher education

Reducing Type 2 diabetes

Reducing recidivism

$10-12M

Investment in SIBs expected in 2016

Improving K-12 math

Ultra-Orthodox Israeli-Arab education & education & employment employment

11 Non SIB Impact Investing Products

Non SIB Impact Investing Products In the last year SFI has begun expanding beyond SIBs towards other impact products to meet investor demand. One of the promising concepts we are exploring is co-mingled funds which create a multiplier effect for foundation or government capital.

Micro-finance fund for women Providing an opportunity for women near poverty to achieve financial independence (minimum income of 5,000 ILS per month) through a small independent business established with a loan from a unique co-mingling fund accompaniment of “Latet Atid” - a non-profit providing professional business advice and long-term support by a mentor with business experience

Product structure 10%

35%

55%

Philanthropic credit enhancement

Social investors (SFI raising capital)

Tarya via its P2P platform

Layer I – 10% first loss Interest – 1.5%

Layer II – 7% default beyond Layer I Interest – 6.5%-7%

Default beyond layer I and II. Interest 4%-5%

Emergency fund for non-profits SFI is supporting the establishment of a $1.5M emergency relief loan fund for non-profits. The fund will offer loans in periods of security instability, to non-profits that engage and assist the populations affected.

Ira Friedman VP, Investor Relations and Alternative Products I see a growing interest and appetite from savvy investors, keen on hearing about new and innovative products from us. In this phase, it is crucial for us to offer an array of innovative products.

12

Advisory Services

A d v is ory Servic es SFI started to engage in advising foundations, government, municipal entities and social enterprises on issueus of impact investments and SIBs. The advisory service will play a leading role in SFI's effort to create new vehicles, perform the needed research for establishing SIBs tackling new social issues and deepen the public sector understanding and involvement in social impact investing.

Feasibility

Foundations

Mapping

An in-depth study of social issues in Israel, the financial and social outcomes arising from each issue, intervention plans and budgets allocated toward tackling the issue and effective deployment.

Identifying the issue

Target population

Impact assessment and strategy Help build impact investment portfolios and plan new impact strategies consistent with foundations goals.

Assessing interventions

Government Agencies and Municipalities

Impact screening

International input

Valuing the outcome

Measurement method

On the basis of this research, SFI then determines if SIBs could be used to address this social issue, design outcome measurement metrics and a payment framework and identifies the best delivery system.

Analyze verticals in authorities (financed by the agency itself, or by philanthropy) and examine those issues suitable for treatment using SIBs and other impact products.

13 Policy and Advocacy

P o l ic y and A d vocac y SFI works closely with government agencies in an effort to create the terms for growth of the social impact investing field in Israel.

Recognition for SIBs Positive Effects The Israeli government had not yet appointed an entity to lead a national strategic plan to enhance social impact investment. SFI has worked closely with the National Economic Council in the Prime Minister Office. The Council recognized SIBs and announced support of them in its 2009-2015 summary of selected projects.

Tax structure for SIBs SFI is working with the Israeli Tax Authority to provide tax incentives for investments in SIBs.

Wholesaler of capital for impact investment SFI and The Portland Trust are leading discussions with the Ministry of Justice to promote the utilization of unclaimed assets as a source of funding for social impact investments - based on the British Big Society Capital’s model. By supporting Social Impact intermediaries and SiBs, it is expected that such a wholesaler would be a major champion and enabler of funding of social entrepreneurs, boosting the development of social impact organizations, companies and products.

Unleashing Institutional Capital SFI is talking with the Capital Market, Insurance and Savings Department of the Ministry of Finance, to examine the possibility of institutional investors to enter the SII field.

14

Market Education in Israel

Mar k et E d u c ation in Is rael

2013

As a pioneer organization in the Israeli market, SFI aspires to expose new players and partners to the model of SIBs and their potential to help society. SFI continues to engage and educate policy makers, not-for-profits, and industry bodies regarding the benefits of new social investment vehicles.

The SFI website is live Hosted an introductory session for effective not-for-profit organizations with the potential of facilitating the development of Social Impact Bonds premised on scaling existing successful interventions, in collaboration with Midot.

Leading a round table on social enterprises between sectors (Nov 13)

Participating in a panel on social businesses (March 2014)

2014

Leading a discussion on the use of SIBs to prevent diabetes (Sep 2014)

SFI co-hosted the annual Evalue conference targeted at researchers and policy makers in the field of measurement and accountability.

2015

SFI leads and hosts debates in first Social Impact Investing conference focusing on Israel.

SFI began publishing an industry specific Newsletter SFI hosts a meeting for leading philanthropic foundations, to discuss the role of foundations in SII.

Participating in a panel on impact investing (Nov 2014)

Speaking on the prospects of social impact investing (Nov 2014)

Speaking about social action through the capital market (March 2015)

Participating in a panel on new opportunities in philanthropy (April 2015)

2016

SFI launches it’s Facebook page.

SFI delivers a lecture to the Budget Department in the Israeli Ministry of Finance

* The above information is not inclusive

‫‪15‬‬ ‫‪Market Education in Israel‬‬

‫‪SFI promotes the aspects of it's activity relevant to the general public, pushing‬‬ ‫‪awareness for social impact investing and SIBs in particular.‬‬

‫‪102/30/51‬‬

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‫ידיעות‬

‫‪2-35733325‬‬

‫ממו‬

‫ות‬

‫‪.25x20‬‬

‫עם‬

‫‪20‬‬

‫‪102/30/51‬‬

‫‪front‬‬

‫‪post‬‬

‫‪erusalem‬‬

‫‪the‬‬

‫[(‪D'nn‬בסוכרת‬ ‫‪Israel‬‬ ‫‪launchesfirst‬‬ ‫‪social-impact‬‬ ‫וששים‬ ‫וששים‪ $DN2$‬תזה נסף‬ ‫‪bond to prevent‬‬ ‫‪Type diabetes‬‬ ‫‪52334550‬‬

‫!‪-‬‬

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‫‪05‬‬

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‫‪23‬‬

‫‪$TS1$‬וששים‪$TS1$‬‬

‫בישראל‪:‬‬ ‫לראשונה‬ ‫הסוכרת‬ ‫מאת‬

‫הושקה איגרת חוב חברתית‬

‫הכסף שיגוייס יושקע ב־‬ ‫‪052,2‬‬

‫ברגמן‬

‫רועי‬

‫ארגון‪SocialFinance Israel‬‬

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‫איגרת החוב‬

‫בארץ‪.‬‬

‫איגרת החוב‬

‫החברתית הינה‬

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‫רק כ־ ‪ 60‬איגרות מסוג זה‪.‬‬

‫בחרו להשיק איגרת ראשו־‬ ‫‪$TS1$‬ראשונה‪$TS1$‬‬

‫‪SF1‬‬

‫במטרהלצמצם‬

‫את‬

‫בעלי סיכון גבוה‬ ‫מטופלים‬

‫מספרחולי‬

‫‪condition‬‬

‫‪blood‬‬‫‪person's‬‬

‫אין זהעובד?‬ ‫הארגון מגייס‬ ‫באמצאות‬

‫‪too‬‬

‫‪than‬‬

‫החברתית‬

‫מושקעים‬

‫הכספים‬

‫במטרה‬

‫עמ‬

‫החברתית‬

‫גויסו(מניעתסוכרת)‬

‫‪haaret‬‬

‫‪front‬‬

‫‪13 .27x29.22‬‬

‫אג״ח‬

‫מה‬

‫‪Social bond' to fund fight‬‬ ‫‪againstType diabetes‬‬

‫נה‬ ‫‪$DN2$‬ראשונה‪ $DN2$‬בישראל בתחום‬ ‫לצמצום ומניעה של מחלת‬ ‫בקרב כ־ ‪ 400‬אלף אנשים שמוגדרים‬ ‫אנשים‬ ‫כלומר‬ ‫״פרה־סוכרתיים״‬ ‫שערך הסוכר שלהם בדם נע בטווח‬ ‫של ‪ 125 110‬לדברי ירון נוידרפר‪,‬‬ ‫חברתית‬ ‫מנכ״ל ‪ sfi‬״לסוכרתעלות‬ ‫קשה‪ ,‬כתוצאה מהסיכוןלחולהולמש־‬ ‫‪$TS1$‬ולמשפחתו‪$TS1$‬‬ ‫‪$DN2$‬ולמשפחתו‪ $DN2$‬וכןעלות כלכלית גבוהה למשק‬ ‫פחתו‬ ‫שנאמדתבלמעלה מ־ מיליארד שקל‬ ‫בשנה בגלל ירידה בפריון העבודה‬

‫הבריאות‪ ,‬שתפעל‬

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‫הסוכרת‬

‫מכשיר‬

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‫מראש‬

‫פרק‬

‫הזמן‬

‫בודקים‬

‫ביעדי‬

‫שנקבע‬

‫את‬

‫העמידה‬

‫ההשקעה‬

‫אם הושגו‬

‫השקעה‬

‫שמגייס‬

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‫כספים‬

‫חברתיות‪.‬‬

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‫אינה‬

‫והו‬

‫מבטיחה‬

‫למשקיעים‬ ‫במקרה של‬ ‫כספם‪ ,‬אלא‬ ‫הצלחה‬ ‫במטרה שלשמה‬ ‫צמצום‬ ‫גויס ‪-‬כמו למשל‬ ‫חולי הסוכרת‪ .‬אג״ח‬ ‫בה‬

‫היעדים‬

‫המדינה או הארגון‬

‫את‬

‫החזר‬

‫ועלויות‬ ‫‪NIS 20 million issue will finance‬‬ ‫‪preventative‬‬ ‫‪program,‬‬ ‫למשקיעים‬ ‫משלמים‬ ‫החולים‪,‬‬ ‫הלאומי״‪.‬‬ ‫‪with investors earningprofits‬‬ ‫מלוא ‪from‬‬ ‫‪health cost savings‬‬ ‫לכך‬ ‫ההוצאות‬

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‫כמו גם‬

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‫קופות‬

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‫הפרויקט תגייס ‪ sfi‬כ־ ‪22‬‬

‫מיליון שקל ממשקיעים מישראל‬ ‫מרחבי‬ ‫העולם‪ ,‬ומישיוביל‬

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‫את הגיוס‬

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‫עודפת על‬

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‫השקת איגרת החוב החברתיתלצמצום‬ ‫התחלואה במחלה‪ .‬זה צערגדול שי־‬ ‫‪$TS1$‬שיכול‪$TS1$‬‬ ‫הסיכון הגבוה ביותר לחלות בסוכרת‪.‬‬ ‫המשקיעיםיקבלו את כל כספם בחזרה כול‬ ‫ולגילוי מוקדם‬ ‫‪$DN2$‬שיכול‪$DN2$‬להוביללמניעה‬ ‫של הסוכרת״‪ .‬שלמה מור יוסף‪,‬מנכ״ל‬ ‫בתום‬ ‫חמש שנים מתחילת התוכנית‬ ‫הביטוחהלאומי‪ :‬״מה שאנחנו עושים‬ ‫בקרב‬ ‫רק אם יירשם שיפור של‪%04‬‬ ‫פהיציל יותר חיים מתרופותמצילות‬ ‫קבוצתהמטופלים‪ .‬שיפור בשיעור‬ ‫גבוה יותריוביל גם לתשואה עודפת‬

‫‪more‬‬

‫‪level to‬‬

‫‪sugar‬‬

‫‪high‬‬

‫‪affects‬‬

‫‪people globally.‬‬

‫החוב‬

‫שלשמה‬

‫‪become‬‬

‫חיים‬ ‫ובעלות‬

‫נמוכה בהרבה״‪.‬‬

‫‪Roee.bergman@yedioth.co.il‬‬

‫‪that‬‬

‫‪causes‬‬

‫‪000,005‬‬ ‫‪peoplein Israel and‬‬

‫כספים‬

‫איגרת‬

‫‪oiaoetes‬‬

‫‪lype‬‬

‫‪million‬‬

‫‪415‬‬

‫‪Diabetes‬‬ ‫‪the number‬‬ ‫‪Federation predicts‬‬ ‫‪could grow by50 percentin the‬‬ ‫‪International‬‬

‫‪The‬‬

‫‪25 years, althoughType‬‬ ‫‪2's association‬‬ ‫‪with factors‬‬ ‫‪next‬‬

‫‪mean‬‬ ‫‪its onset‬‬ ‫‪obesity‬‬ ‫‪preventable.‬‬

‫‪be identified‬‬

‫‪as‬‬

‫‪such‬‬

‫‪is often‬‬

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16

Israel in the Global Social Impact Investing

community

I s rae l in the Glob al Soc ial Im p ac t I n v e stin g com m unity One of SFI’s goals is to leverage the global success of the Social Finance global network for the benefit of Israel. SFI promotes the presence and standing of Israel’s growing impact investing market in the global impact investing arena.

Paving the way to recognition In June 2013, the UK Government established the G8 Taskforce on Social Impact investment, led by Sir Ronald Cohen. Israel presented to the Taskforce on two occasions.

In December 2013, SFI presented a SiB for the reduction of type 2 diabetes to the Taskforce.

On April 7th 2014, Social finance Israel, in collaboration with the Rothschild Caesarea Foundation, presented to the leaders of the G8 Task Force an innovative approach to reducing drop out rates from higher education, funded through Social Impact Bonds

Yaron Neudorfer, SFI’s CEO presented to the Taskforce Plenary Meeting on July 9th ,2015, describing the state of the SII sector in Israel, as a step towards Israel’s membership of the Global Steering Group which was formed to continue the Taskforce’s work

Israel has been admitted as a member of the Global Steering Group for Social Impact Investing SFI has been enabling the work towards comprising the Israeli National Advisory Board. Working together with all important players in the market, SFI will pursue a sustaining leading role in shaping the recommendations critical to growth and success of impact investing in Israel.

17 Fostering Strategic Partnerships

F o s te r ing Strategic P ar tn ers hips SFI’s team nurtures strategic partnerships, engaging its partners to participate in different impact investing related activities.

The JDC joined the group of SFI’s core funders in 2014. Since then, the JDC has been exploring in collaboration with SFI, ways to create impact products in social areas prioritized by the JDC.

The Rothschild Caesarea Foundation contacted SFI more than 2 years ago, in order to explore supporting one of the foundation’s programs through a SIB. After a long collaboration, the SIB was successfully launched, with the foundation as a cornerstone investor.

The Trump Foundation originally contracted with SFI to develop a SIB to tackle the declining number of pupils choosing the highest matriculation level in high school math (5 units). An in-depth study propelled the foundation to use SFI’s expertise to assess the outputs of all the foundation’s projects and value their impact.

SFI's SIB to tackle type 2 diabetes has caught the attention of UBS, the Swiss bank and world's leading wealth manager which has scaled up its legacy of promoting investments with added social and/or environmental impact in recent years. As the world's largest wealth manager UBS has the networks and financial experts to foster impactful partnerships. UBS and SFI are also collaborating to conduct a groundbreaking research on the Israeli impact investing market.

National Insurance Institute of Israel

The National Institute of Insurance (NII), which serves as the social security system of Israel, has taken bold steps in complementing its traditional role of supporting the needs of those afflicted by ailment and disability to actively commissioning social outcomes that that eliminate or reduce the need for welfare support. The NII has been instrumental as an outcome payer in the SIB to tackle type 2 diabetes and as a partner in our vision to expand and improve the delivery of social outcomes.

This landmark commitment is expected to serve as the cornerstone for future collaboration towards socially desirable outcomes.

18

Creating

the Path Towards Sustainability

C re at in g t he P ath T oward s Su s t ainab ility SFI is generating income and on the road to sustainability.

Operating budget

2013

Earned income

1% 2014

18.7% 2015

29% 2016

*Objective

35-45% 2017

45-50% 2018

50-60% 2019

USD 0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

19u i l d i n g a T e a m o f P r o f e s s i o n a l s B

B u il ding a T eam of P r of essionals

Sir Ronald Cohen Chairman

Yaron Neudorfer CEO

Ira Friedman VP Investor Relations

Shlomi Zidky Director Operations

Eran Mozel Project manager Performance Management

Ilya (Luka) Skorochod S. Associate Financial modelling

Emanuel Bohbot S. Associate Measurement methods

Ruth Lotan S. Associate Advisory services

20

Attracting talent from top universities

A ttr ac t in g talent f rom top u n iv ers ities

3 students from the MBA Cares Practicum, within the framework of Sofaer IMBA Program Tel Aviv University

4 summer interns from Harvard Kennedy School , working on designated projects 1 s u m m e r i n t e r n f ro m Pepperdine University Stanford University Graduate School of Business, GMIX program First scheduled intake, summer 2016

21 h a t ’ s n e x t ?

W

W h at’s nex t?

To acquire knowledge through experience and practice and eventually possess demonstrated expertise in achieving positive outcomes

Education Building on a solid reputation in the field of education (1 SIB launched and one in development), SFI can expand to other areas such as early childhood education, vocational training for unique populations, teachers churn rate etc.

Prevention in the Health Care System Feasibility studies towards prevention and alternative care for CVA, reducing infections in hospitals, avoiding children accidents and trauma are all possible issues to tackle through SIBs, capitalizing on the experience SFI gained in working with the health care system in Israel.

22

What’s next?

Ageing Population Pilot program and measurement for a “Ageing in Place” project – preventing ageing population need and dependency A feasibility study and development process for a SIB to prevent early retirement as a means to avoid elderly care and health issues.

Children at the Edge of Care Experience in the Social Finance Global Network shows out-of-home placement for children is a suitable social issue to address through a SIB, research and adaptation of the model are needed for the Israeli market.

23 What’s next?

Israel’s Population: 8.3M Living in 261 municipalities

Top 15 municipalities > 45% of population

Creating SIBs for Municipalities rather than for central government could generate great impact and a ripple affect

Haifa

Netanya

Bat Yam

Holon

Ramat Gan

Tel Aviv

Rishon LeTsion Rehovot Ashdod Ashkelon

Be’er Sheva

Petha Tikva Bnai Brak

Jerusalem

24

Board members

Sir Ronald Cohen (Chair) David Baruch Forsan Hussein Marty Karp Anath Levin Galia Maor Chemi Peres Yossi Tamir Ariel Weiss Glenn Yago

Tel: +972 (3) 632-9881 Email: info@socialfinance.org.il

Fax: +972 (3) 632-9882 Website: Socialfinance.org.il

25

Tel: +972 (3) 632-9881 info@socialfinance.org.il

Fax: +972 (3) 632-9882 Socialfinance.org.il