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.
The United Way of Salt Lake is funding early childhood education through a pay-for-success program. The program promises significant cost savings to the State of Utah and demonstrates a strong business case to scale the program. But is that enough to make it a good social impact bond?
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.
Despite all the criticism, negativity and reports of failure, the Peterborough social impact bond may prove to be a disrupter in the way we fund social services and invest in impact. Plenty has been written and said about the Peterborough prison social impact bond, so there is no need to go into detail here. Why …
Continue reading “The World’s First Social Impact Bond: Success or Failure?”
It is very easy to look at pay for success as the next great innovation in public service. It’s also easy to look at it as the next great weapon of Wall Street greed. That’s the problem. There are still far too many unknowns about the real potential of these projects, and it is far …