A good story lining up the triumvirate pushing change and a better society for all via Social Impact Bonds…
‘Pay For Success’ — When Government, Private & Community Interests Align
John Hoffmire – Deseret News
Not all government policies are as effective as intended. This can happen for a variety of reasons, including failure to thoroughly research a policy’s consequences or a misunderstanding about which people will be affected. Often policies are proposed based on stories and anecdotes rather than data, or no measurable goals are proposed to accompany a policy. In the last few years, innovative “pay for success” programs are transforming the way in which government develops and implements policy in various places around the country, including Salt Lake City.
What is a “pay for success” program? It is a program initially funded by investors through which, if successful, as determined by an independent third party, the government pays said investors a pre-specified return. If the policy is unsuccessful, the investors can lose some or all of their investment. This is good for citizens and government since taxpayers’ dollars are only spent on policies that actually deliver results. The organizations that implement work also often receive upfront monies and do not have to fundraise on a yearly basis to provide the services which are contracted.