The Reason Foundation’s Leonard Gilroy has an interesting report on the growing interest in social impact bonds. Georgia’s existing criminal justice reforms have created a need to fund community-based services, which could be leveraged by social impact bonds.
Gilroy writes:
“An article in the first edition of this newsletter back in October noted the growing interest among states in the emerging tool of social impact bonds (SIBs), which are public-private partnerships in which private philanthropic organizations, financiers, nonprofits or other nongovernmental organizations finance and implement new social service delivery models on behalf of governments under a pay-for-success contract model. Since then, there have been some noteworthy developments in three states—New York State, New Jersey, and Washington State—that demonstrate that the SIB concept continues to gain steam.
“The biggest news comes from New York State, where late last month, Governor Andrew Cuomo announced the launch of the first state-level SIB initiative in the country, a $13.5 million program to reduce recidivism among 2,000 recently released prisoners through delivering intensive employment training and job placement services. Services in the four-year program will be delivered in Rochester and New York City by the nonprofit Center for Employment Opportunities (CEO). Bank of America Merrill Lynch has raised $13.2 million from investors—$1.3 million of which is backstopped by the Rockefeller Foundation through guarantees—and the Robin Hood Foundation invested the remaining $300,000.”
To view the rest of the article: New York Launches First State-Level Social Impact Bond Program
The Reason Foundation’s Leonard Gilroy has an interesting report on the growing interest in social impact bonds. Georgia’s existing criminal justice reforms have created a need to fund community-based services, which could be leveraged by social impact bonds.
Gilroy writes:
“An article in the first edition of this newsletter back in October noted the growing interest among states in the emerging tool of social impact bonds (SIBs), which are public-private partnerships in which private philanthropic organizations, financiers, nonprofits or other nongovernmental organizations finance and implement new social service delivery models on behalf of governments under a pay-for-success contract model. Since then, there have been some noteworthy developments in three states—New York State, New Jersey, and Washington State—that demonstrate that the SIB concept continues to gain steam.
“The biggest news comes from New York State, where late last month, Governor Andrew Cuomo announced the launch of the first state-level SIB initiative in the country, a $13.5 million program to reduce recidivism among 2,000 recently released prisoners through delivering intensive employment training and job placement services. Services in the four-year program will be delivered in Rochester and New York City by the nonprofit Center for Employment Opportunities (CEO). Bank of America Merrill Lynch has raised $13.2 million from investors—$1.3 million of which is backstopped by the Rockefeller Foundation through guarantees—and the Robin Hood Foundation invested the remaining $300,000.”
To view the rest of the article: New York Launches First State-Level Social Impact Bond Program
