Always a pleasure to see Tracy Palandjian discussing PFS/SIBs and here she is in the Wall Street Journal that redoubtable bastion of capitalism discussing the merits of the product.
Meanwhile, Rodney Schwartz has contributed a most thought provoking missive to Pioneer Post. This is another ‘must read.’ Indeed the sentence: “In such fiscally constrained times, the rule of “what works?” must predominate” jumps off the page as a cry to action methinks!
Thirdly there is a useful contribution to the evaluation of metrics and measurements for social impact.
It’s a bumper day for SIB News, happy reading!
Profits Meets Philanthropy In ‘Pay-For-Success’ Investments
Michael J. Casey – Wall Street Journal
Do you care about reducing the prison population? Want to create work opportunities for homeless people? Re-employ veterans? Well, a new model of investing allows you to fund such projects — and even take home a profit.
It’s called Pay for Success, a radical form of civic-minded financial engineering that effectively reverses a problematic paradigm that prevailed during the financial crisis. Unlike the dysfunctional situation of 2008, when giant bank bailouts amounted to “privatized profits and socialized losses,” this model leaves private investors bearing the risk that a social program might fail but sharing the spoils with taxpayers if they work, explains Tracy Palandjian, CEO of Boston-based nonprofit and pay-for-success pioneer Social Finance.
Pursuing “What Works?”, From Financial Innovation To Bribery
Rodney Schwartz (CEO of ClearlySo) – Pioneers Post
In an era of austerity when fiscal constraints are affecting almost every corner of society, ideological opposition to financial innovation in the social sector is seeping away. CEO of ClearlySo Rodney Schwartz unleashes a thought experiment to challenge how we think about conflicts around the world.
Making Sense Of Social Impact Metrics & Measurements
Naki B. Mendoza – Devex
Social enterprises the world over are bursting at the seams with innovations to tackle poverty and promote social good, but precisely how to measure the impact of their initiatives remains a recurring question.