123STA T . 1 56 5 PUBLIC LA W 111 – 13 — AP R .21 , 2 0 0 9‘ ‘ (2)Increas e dpubli c and pri v a t e invest m ent in replicatin g and e x panding pr o ven e f fective solutions , and supporting ne w solutions, developed b y social entrepreneurs and ot h er nonprofit community organi z ations could allow those entrepreneurs and organizations to replicate and expand proven initiatives, and support new initiatives, in communities . ‘‘( 3 ) A networ k of S ocial Innovation F unds could leverage Federal investments to increase State, local, business, and philanthropic resources to replicate and expand proven solu - tions and invest in supporting new innovations to tackle specific identified community challenges. ‘‘(b) PURPOSE S. —T he purposes of this section are— ‘‘( 1 ) to recognize and increase the impact of social entre- preneurs and other nonprofit community organizations in tack- ling national and local challenges
‘‘(2) to stimulate the development of a network of Social Innovation Funds that will increase private and public invest- ment in nonprofit community organizations that are effectively addressing national and local challenges to allow such organiza- tions to replicate and expand proven initiatives or support new initiatives; ‘‘(3) to assess the effectiveness of such Funds in— ‘‘(A) leveraging Federal investments to increase State, local, business, and philanthropic resources to address national and local challenges; ‘‘( B ) providing resources to replicate and expand effec- tive initiatives; and ‘‘( C ) seeding experimental initiatives focused on improving outcomes in the areas described in subsection (f)(3); and ‘‘( 4 ) to strengthen the infrastructure to identify, invest in, replicate, and expand initiatives with effective solutions to national and local challenges. ‘‘(c) D E FIN I T IONS.—In this section
‘‘(1) CO M MUNIT Y OR GA NI Z ATION.—The term ‘community organization ’ means a nonprofit organization that carries out innovative, effective initiatives to address community chal- lenges. ‘‘(2) CO V ERE D ENTITY.—The term ‘covered entity’ means— ‘‘(A) an existing grantmaking institution (existing as of the date on which the institution applies for a grant under this section); or ‘‘(B) a partnership between— ‘‘(i) such an existing grantmaking institution; and ‘‘(ii) an additional grantmaking institution, a State Commission, or a chief executive officer of a unit of general local government. ‘‘(3) ISSUE AREA.—The term ‘issue area’ means an area described in subsection (f)(3). ‘‘(d) PROGRAM.—From the amounts appropriated to carry out this section that are not reserved under subsections (l) and (m), the Corporation shall establish a Social Innovation Funds grant program to make grants on a competitive basis to eligible entities for Social Innovation Funds.
