Social impact bonds are partnerships aimed at improving social services for specific groups. While these bonds are usually funded by large investors, SFI, in collaboration with the Tel Aviv Foundation, decided to open this investment to crowdfunding through the Fundit platform.
The impact investment, titled "New Era," is expected to affect 200 seniors in Tel Aviv over 2.5 years with a total investment size of NIS 2.3 million, with NIS 1.6 million being raised before the crowdfunding launch.
The investment will aim to reduce the loneliness of hundreds of seniors in the city, improve their quality of life and help them reconnect to their community. The program will include house calls by social workers and volunteers, a cognitive behavioral therapy program, group activities and help with using technology to access quality content, call relatives and connect with other participants in the program.
Research by SFI found that loneliness almost sextuples the likelihood of depression in the elderly, more than doubles the likelihood of dementia and more than triples the chances of prolonged hospitalization.
"I am excited to enable everyone to invest in a social impact bond to reduce elderly loneliness and thus, address not only a difficult problem which has intensified recently but also, get a return on the investment subject to the project's success," said Yaron Neudorfor, founder and CEO of SFI, in a press release. "Impact investments around the globe are continuing to grow since we are witnessing a new generation of investors that want more than a return; they want their investments to be meaningful according to their values."
"For the past 4 decades the Tel Aviv Foundation is working to create solutions to the city's current challenges," said Dr. Hila Oren, CEO of the Tel Aviv Foundation. "Covid-19 has presented new challenges and intensified other challenges – among others, the subject of elderly loneliness. As an entity that leads innovative urban thought and activity, we are happy to partner with SFI and create innovative financial tools that will contribute to the city and its residents in general and to the elderly and Holocaust survivors [which will be our primary focus] specifically. Urban challenges of the 21st century require financial solutions of the 21st century."
There are about 1.1 million such seniors in Israel, making up about 12% of the population.
A study by the Eshel social research and development incubator of the Joint Distribution Committee (JDC) in December found that the health, emotional state and economic status of seniors in Israel have been severely impacted by the coronavirus crisis.
Almost half of the respondents (47%) reported a poor mental state, including loneliness, depression and even feelings that "in the current situation, life has no meaning." This marks a more than 7% rise compared to the last survey conducted by Eshel during the first wave of the virus.