Social impact bonds and Pay for Success contracts for expanding education and social services

Noon, Tuesday, November 14 in Room 180 at the Humphrey School of Public Affairs

Judy Temple, HCRC co-director and professor at the Humphrey School of Public Affairs presented "Social impact bonds and Pay for Success contracts for expanding education and social services."

In the last 5 or 6 years, private investors have contributed millions of dollars to help expand cost-effective educational, health and social services at the state and local level with the expectation of being paid back if the services are successful in addressing specific social goals. Starting with private investments to help reduce recidivism, the use of social impact financing through Pay for Success contracts has expanded into financing preschool programming and social services such as reducing homelessness in the U.S. and abroad. This presentation highlighted some of the opportunities and challenges in the use of these social impact "bonds" and used recent results from Chicago in the expanded provision of preschool services funded  by Goldman Sachs and other private partners as the main illustrative example.