September 30 2016

Made it back to Europe from Belo Horizonte, Brazil and the World Cooperative Management Conference. The big news of today is the launch of the Social Finance programme in Hartford Connecticut…

(HARTFORD, CT) – Governor Dannel P. Malloy, U.S. Administration on Children, Youth and Families Commissioner Rafael López, Connecticut Department of Children and Families Commissioner Joette Katz, and Social Finance CEO Tracy Palandjian announced the launch of an innovative new program that will help 500 Connecticut families with young children who are in need of services to help ensure family stability and keep young children with their parents.  The Connecticut Family Stability Pay for Success Project will combine nonprofit expertise, private funding, and independent evaluation to promote family stability and reduce parental substance use for DCF-involved families.“Finding innovative ways to support promising programs that tackle chronic social issues is a continuous endeavor.  Pay for Success is the right tool at the right time,” Governor Malloy said.  “Connecticut, like so many other states, face increased urgency for effective substance use treatment services to help families stay together.  As we strengthen family stability and improve home conditions for children, life-long outcomes will surely improve for our children and families who need help the most.”

500 Families with Children Aged Six and Under Will Benefit from the Family Stability Pay for Success Project Over the Next Four and a Half Years.

Through the PFS model, the government repays private investors only if the program meets predetermined outcomes.  Independent evaluators measure the effects of a program that demonstrate a return on investment based on specific metrics that benefit both individuals and society.

Project funders include BNP Paribas, QBE Insurance Group Limited, Reinvestment Fund, Doris Duke Charitable Foundation, Laura and John Arnold Foundation, Nonprofit Finance Fund and two anonymous family foundations.

“Pay for Success is about unlocking private capital to advance the public good,” Tracy Palandjian, CEO and co-founder of Social Finance, said.  “By directing resources toward effective programs like Family-Based Recovery, we will measurably improve the lives of families in need.  Projects like this are a testament to what we can achieve when diverse leaders think creatively and work together.”