La Pobreza en el 2004

Target, the U.S. retailing giant, started the Take Charge of Education program in 1997 as a part of its social mission to strengthen schools and give back to local communities. Consumers have the opportunity to link their Target credit card to the K-12 school of their choice. Schools receive a donation totaling up to 1 percent of all purchases made at Target on the linked cards. In addition, .5 percent of all purchases made elsewhere using the Target Visa Card are directed to the schools.

Schools receive donations twice a year and are able to use the funds for anything they need—whether it’s books, field trips, physical education equipment or to revamp the gymnasium.

what we love

In this model, Target gives consumers the freedom to choose who benefits from the donations and anyone with a Target card is able to participate. In addition, schools—rarely the recipients of unrestricted funds—have the autonomy to use the funds as they see fit. With physical education budgets limited, the opportunity for schools to boost their fundraising efforts is clear.

The Numbers

uS$324M

In 2011, more than 84,000 schools received a check from Target, totaling more than US$26 million in donations. Since the program began, Target has donated US$324 million to schools selected by their consumers.

IDEaS frOM ThE fIElD

zOMbIES, ruN!

In 2012 the development team, Six to Start decided to make jogging more fun by bringing together a creative novelist, interactive media, and the undead.

The result is Zombies, Run!, an immersive running game app for the iPhone, which allows users to adopt the role of a character in a post-apocalyptic world filled with zombies. Players follow the story by going on ‘missions’ that unfold in an audio experience—the more they run, the more mis- sions, clues, and rewards they unlock. The only way to win is to get outside and run.

Using Kickstarter.com, the game developers were able to tell potential investors about this new ultra-interactive game idea using film, imagery and text, while also building investor incentives at different funding levels (such as the opportunity to name a character, or getting a secret ‘field guide’ for the game).

In November 2010, Six to Start received 580 percent of their initial investment request, and successfully launched its app. The team continues to develop new missions all the time, with the ability to record the distance, time, pace and calories burned on all the runs. To date, users have run more than 250,000 miles.

what we love

Entirely crowd-funded through online platform Kickstarter, Zombies, Run! had no shareholders to satisfy, which allowed them to make exactly the game they wanted. It worked, too. The game reached the global top 200 in the App Store, despite retailing at the high price point of US$7.99 (the highest price of any game in the global top 200 in the App Store).

The Numbers

uS$114,000

NEW FINANcING APPROAcHES | Designed to Move –89

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prISON bONDS

The Social Impact Bond (SIB) is an outcomes- and performance-based model invented in 2010 as a response to the radical reduction in spending on critical Public Services in the U.K. The core idea is to broker a contract with socially-minded investors, social innovators and the public sector, where the bond is paid on delivery of improved social outcomes to a defined population of people. Capital is raised from social investors who receive investment returns from the government commensurate with the degree of measured outcomes.

The first SIB funded preventive services for short-sentence prisoners discharged from Peterborough Prison called “One.” The six-year project is still in its second year and return will only be given if the project reduces the reconviction rate of a cohort of 500 male prisoners by 10 percent compared to a control group of short-sentenced male prisoners tracked by the Police National Computer. The SIB differs from traditional funding instruments in a few intriguing ways: with payment contingent on the efficacy of the project, money can be committed over much longer periods than is common in public projects. Social entrepreneurs are able to get going without stringent analysis of the methodology used—enabling innovation to flourish and partners to plan and build around it. The message is, “You take the risk, but you will get a return for success.”

what if This was Sport?

Police databases aren’t a bad place to start. There is an established causal link between uptake of sport and reduced rates of depression and delinquency in young people. What if we could create a social-impact bond that delivers return for innovators who use sport to reduce delinquency compared to a control group?

The Numbers

uS$100M

Because the program is currently running, returns from the U.K. prison bonds program have not yet been calculated. However, in the U.S., President Obama allocated US$100 million of the 2012 budget to SIBs, which were presented to the press as ‘Pay for Success Bonds.’

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INNOVaTIVE parTNErShIpS fOr SpOrTS

As the largest source of development financing in Latin America and the Caribbean, the Inter-American Development Bank (IDB) knows how to generate funding for large-scale projects. In the case of sports programs, however, the approach was typically limited to traditional grantmaking. Until eight years ago, that is.

In 2005, IDB began to recognize the potential of sports to impact everything from youth employability, violence prevention and gender equality to education and health. That’s when they started to mainstream funding for sports programming into their development loans. Over the years, they’ve also developed innovative public-private partnership models to support a diverse mix of sports financing including IDB loans and grants, contribution from private companies and local government financing.

For example, the project “Paving the Way for the World Cup and the Olympic Games: Alliance for Sports and

Development” is a multi-sector partnership between the

IDB, private sponsors (FC Barcelona, National Basketball Association, Visa and Colgate), the municipality of Rio de Janeiro and community NGOs. Rio’s Secretariat of Sports for Development assumed the lead role, but the alliance also coordinates with other sector Secretariats, such as Education, Housing and Health. The alliance’s goal is to promote the social inclusion of 4,000 disadvantaged children and youth in Rio’s favelas through sports programs.

what we love

The approach highlights the potential to bring together diverse partners to channel innovation and financing to sports programming for kids. The leadership of a multilateral powerhouse also translates to policy influence and connections to key government agencies. It also ensures stringent monitoring and evaluation frameworks that may ultimately provide justification for scale-up.

The Numbers

uS$20M

The IDB and its partners have contributed more than US$20 million in grant resources for the development of sports initiatives. US$10 million of the funds have been invested in Sports for Development programming

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