July 13, 2014
With a Few Pay-for-Success Plans Under Way, the Idea Is Gaining Currency and Criticism
Social-impact bonds, one of the most talked-about ideas in the nonprofit world, are quickly building momentum—and sparking controversy over the unproven financing mechanism.
The goal behind the new form of financing is to help government agencies shift from reimbursing nonprofits for the number of people they serve to paying for measurable results.
Sometimes referred to as pay-for-success contracts, social-impact bonds allow private investors to pay for a social program