News from several US states kicks off the week for SIB News. Happy reading…
State Seeks ‘Social Bonds’ To Aid Homeless
wbur
State officials hope to leverage private-sector funding to help reduce the number of chronically homeless people in Massachusetts.
Gov. Deval Patrick plans to unveil the initiative on Monday. Known as Social Impact Bonds or Pay for Success contracts, they rely on upfront funding from private capital investments and charitable donations. Investors are repaid only if an outside evaluator determines the program has achieved a goal that benefits society and saves taxpayer dollars.
Patrick says the program aims to help up to 800 of the estimated 1,500 chronically homeless individuals in the state.
The announcement is scheduled to be made at the South Middlesex Opportunity Council in Framingham.
$5M Ohio ‘Pay For Success’ Targets Homelessness And Child Welfare
Anne Field – Forbes
Cuyahoga County in Ohio, which encompasses the greater Cleveland area, spends about $50 million a year in foster care payments—the single largest area of the human services budget. That doesn’t even include staff and other support costs.
Making a dent in those costs–and creating a more-effective way to help reunite children in foster care with their parents, while helping those formerly homeless families find housing—are the goals of a new Pay for Success (PFS) project just announced at a meeting held by the White House Office of Social Innovation and Civic Participation in Chicago. Also called Social Impact Bonds (SIBs), these financing mechanisms target longstanding social problems through a partnership between government, philanthropies, nonprofits, and private investors aimed at achieving measurable outcomes related to an intransigent issue, like recidivism or homelessness.