Merging finance and social impact to make a better world
The world is getting closer to a more sustainable model for pay-for-success arrangements. Reinvestment Fund, out of Philadelphia, announced a $10 million fund last year to support pay-for-success projects in a portfolio approach that would diversify investors from the risk of any single project.
Around the world, innovative financing methods are being used to tackle social issues. Programs and organizations typically funded by grants are constantly at the mercy of governments who have trouble thinking past the next election cycle. As a result, when spending cuts need to be made governments typically look for the quickest fix – cutting social services.