We are pleased to share the Stanford Social Innovation Review (SSIR) article on SIG, co-authored by Pierre Lorinet, founder and chairman of Lorinet Foundation, Kevin Tan, founder and CEO of Tri-Sector Associates, and Nadia Ahmad Samdin, counsel and project leader with Tri-Sector Associates.
In a new three-way partnership between Social Service Agency YMCA of Singapore, donor TL Whang Foundation Limited, and impact guarantor Lorinet Foundation, the first Social Impact Guarantee (SIG) has been launched. The objective of the SIG is to support youth not in employment, education, or training to pursue vocational training and employment under the YMCA’s Vocational and Soft Skills Programme (VaSSP).
The partnership is Singapore’s first-ever creative partnership involving a Social Impact Guarantee, which ensures that the money donated will be returned and channelled into another charity of the donor’s choice if the promised impact is not achieved. A SIG is an innovative, outcome-based funding model that encourages collaborations between public and private sectors in making positive social impact, while boosting the charity’s accountability and rigorous outcome-focused practices. For newer donors, this also promises each dollar will have an impact, and that they will be reimbursed for any funds that did not achieve the intended effect. Tri-Sector Associates was instrumental in fostering this collaboration by partnering with YMCA and exploring innovative ways of encouraging public and private organisations to be involved in social service in Singapore.