‘Pay for Performance’ Puts Emphasis on Groups Showing Return

Anticipating the growth of social-impact investing, a Boston employment charity has published a study on the societal gains it provides for the dollars it receives, according to The Boston Globe. Jewish Vocational Service says its method of analysis could become a model for nonprofit groups aiming to attract social-impact or “pay for performance” investors.

Massachusetts has been a pacesetter among states examining social-impact bonds, in which private groups pay for programs in such areas as homelessness and juvenile justice, shouldering financial risks now borne by taxpayers but reaping profits if the programs prove effective. Jewish Vocational Services calculated that participants in its training programs earned $2 to $3 more per hour for every dollar put into the organization.

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