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California’s Regional Associations of Philanthropy Issue Letter of Support for SB 593

Tuesday, April 1, 2014

The three California regional associations - Southern California Grantmakers, Northern California Grantmakers, and San Diego Grantmakers - submitted the below letter of support for Senate Bill 593 to State Senator Ted Lieu:

March 25, 2014

Senator Ted Lieu
State Capitol, Room 4061
Sacramento, CA 95814

RE: Support SB 593

Dear Senator Lieu:

We are writing on behalf of California Philanthropy a collaboration of San Diego Grantmakers (SDG), Southern California Grantmakers (SCG), and Northern California Grantmakers (NCG), to express support for Senate Bill 593 to authorize a Social Impact Partnership pilot program in California. 

SB 593 is intended to create the opportunity for the state to participate in Social Impact Partnerships, also referred to as pay-for-success contracts, with not-for-profit organizations and other entities seeking to invest in positive social change.  These types of partnerships are being developed and pursued throughout the country including Massachusetts, Ohio, Illinois, Utah, New Jersey, and New York City.  In addition, the Obama Administration has funded a model project in Ohio and is committing a half a billion dollars in the new budget to fund pay-for-success projects by state and local governments.  Consequently, SB 593 will put California in a position to utilize funds from this initiative. 

SDG, SCG and NCG are the California regional associations of grantmakers.  Each association provides essential infrastructure to support organized philanthropy, including education, professional development, networking, collaboration, advocacy and community building.  The purpose of our respective work is to enable our members to be more effective in their chosen areas of impact. Our organizations provide programming and resources to our members, which include family foundations, corporate giving programs, individual donors, community foundations and private independent foundations.  Collectively, we serve as a unifying voice for philanthropy in California.

Although we believe that Social Impact Partnerships are a promising new financing mechanism to fund social programs and provide a way to partner with the private sector to spur innovation in social programs, our support is not necessarily representative of our individual members’ support for this legislation.

As California begins to contemplate how to restore funding to programs that have been cut or eliminated over the past five years to meet budget constraints, Social Impact Partnerships can and should be an additional tool made available to our state government.

SB 593 is a sensible approach to testing Social Impact Partnerships in California and we strongly support its passage.







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