‘Rather than providing social services directly, Gov’t will offer ‘pay for success’ bonds to Private Sector Social Service Initiatives”

In his GOOD Business article, outlines how two Federal Agencies will apply a SOCENT model using an approved ‘pay-for-success’ bond measure.

It will reward private sector businesses that generally have more efficient operational and delivery models than government to successfully address social issues.

Per Goldmark, this “new for-profit investing tool” has already been used in the United Kingdom and Australia.

The early evidence from the United Kingdom suggest social impact bonds are a promising innovation for lean budgetary times because the government doesn’t end up paying for projects that fail.

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