...Social Impact Bonds have been used in Great Britain to fund OneService, a non-profit committed to reducing recidivism and helping recent parolees adjust to life outside of prison.

In August, New York City announced a partnership with Goldman Sachs for $9.6 million over four years to see social service provider MDRC’s Adolescent Behavioral Learning Experience – a program designed to reduce adolescent recidivism rates – implemented at Rikers Island.

If recidivism among adolescents at the prison is not reduced by more than 10 percent, Goldman Sachs receives no return on its investment, with no public funds jeopardized. However, Goldman Sachs stands to realize profits of up to $2.1 million if recidivism is reduced by 20 percent and the city saves over $20 million in incarceration costs...

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