Two interesting articles today on PFS / SIB models – well worth reading…
‘Pay for Success’: A Better Way To Deliver Social Services?
Charles Chieppo – PUBLICCEO
Nobody likes to pay taxes, but I suspect that most people would find it a little easier to take if they knew their tax dollars were funding the achievement of concrete public goals. That’s the idea behind “pay-for-success” programs that have been launched during the last year in Illinois, Massachusetts and New York state and are being developed or considered in several others.
Under these programs, government sets out a set of specific goals in areas such as mental illness, homelessness or preventive health care. Private investors and philanthropic organizations then finance the work of nonprofits to deliver cost-effective, evidence-based social services on behalf of the state. The investors receive “success payments” only if the desired results are achieved.
3 Things You Should Know About Social Impact Bonds
CED Program Interns & Students – UNC
Recent state and federal-level budget talks often stress that public funding is insufficient to adequately address pressing social issues that prevent capable citizens from fully participating in our economy. However, an emergent, long-term approach to financing social and health service delivery is gaining momentum—social impact bonds, or SIBs. Even though no formal SIB pilot has been launched in North Carolina, to date, organizations like the Nonprofit Finance Fund, which hosted a workshop in Charlotte targeted towards early childhood service providers, are already exploring how to build the capacity necessary to implement SIB-backed programs throughout the country.