Issuing Bonds to Invest in People


In cases where funding is short for social programs, social impact bonds are becoming an increasingly appealing funding mechanism. Private investors and philanthropic institutions invest money upfront to fund a social program; if the program shows measurable success, the investors gain their original investment plus interest. A key example is in Connecticut, where a social impact bond was set up to expand the Family Stability Pay for Success Project. By spending money on prevention, investors and governments save money later.

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