Two good stories today discussing Australian from the excellent offices of Third Sector as well as discussing the Denver homelessness initiative.
What Can The Australian Job Services System Teach Us About Pay for Success?
John Grossman & Kevin Tan – Third Sector
By diverting resources to programs that are measurably successful, the PFS model could move the needle on many seemingly intractable social problems.
In the United States, however, PFS is still a niche concept. In the three years since the first PFS contract was signed in New York, only seven more PFS projects have been launched in the United States. This is reason for reflection. Observers and practitioners in the field alike should think deeply about why the national momentum behind the model has been slow to crystalize into launched projects. What obstacles prevent PFS from becoming the norm?
A study in contrasts is often helpful. In search for an answer, we start by looking at a system where PFS contracting is already an everyday occurrence. The Australian jobs services system is an intriguing example.
Denver Initiative Would Tap $8.7 Million From Investors To House The Homeless
Jon Murray – Denver Post
Supportive housing program would use novel “social impact bond” financing model that draws private start-up money.
The $8.7 million “social impact bond” contract would draw on private dollars to house and rehabilitate 250 of its most chronically homeless.
In the proposed arrangement, investors providing startup money to the city could earn back as much as $11.7 million — including up to $3 million in bonuses — or they could lose out on full repayment.