Social Impact Bond Initiatives Move Ahead

Social impact bonds are a relatively new option for funding health and human services, which I touched on briefly last year in Two New Tactics For Non-Profit Funding. The basic model involves private investors making a loan to a provider organization in the amount needed to start and manage a specific program. A government agency then agrees to contract with that provider organization for the specific program – with a stipulation that payment will be only if the achieves a specific outcome. Hence the names “social impact” bond or pay-for-success program (see What is Pay for Success?).

I . . .