|SOCIAL IMPACT BONDS||
THE ISRAELI SOCIAL SECTOR
Despite its overall economic success Israel now finds itself facing a number of social problems including growing inequality, poverty and unemployment in certain groups. The high unemployment rates within ultra-Orthodox and Arab-Israeli communities mean that over half live below the poverty line, including more than 800,000 children. This not only presents an urgent social issue, but their economic effect exacerbates socio-political tensions within everyday life.
These challenges are currently being met by Israel’s registered 16,000 not-for-profit organizations, which are largely funded by overseas philanthropy. However, in recent years, foreign private donations have fallen and many social organizations are facing severe medium and long-term financial difficulty. While not-for-profit organizations have increasingly looked to government as a source of future funding, international experience has shown that new tools and financial mechanisms must be created to attract new capital to the social sector.
Social Finance Israel was established in order to meet this growing need. As a sister organisation to Social Finance UK and Social Finance US, Social Finance Israel is a social-financial intermediary which will issue innovative financial products, including the Social Impact Bond.