Can Social Impact Bonds be an effective tool for spurring private investment in solving pressing social problems?
Why are we asking?
In a Social Impact Bond, private investors fund the intervention through a nonprofit contractor and the government pays the contractor only if the program meets its goals. This could potentially provide an important new source of funding for social programs that ties funding to effectiveness of the program. MDRC is working to explore the effectiveness of this new funding model.
Working Toward a Solution