“Pay for success has brought state and local governments into the impact-investing world. It brought in people who run homeless shelters and do job training: ‘If I’m good at what I do, I can access the capital markets.’”
So far, private investors have funded 108 projects aimed at saving governments money with innovative projects serving everyone from homeless youths in Australia to parents in need in Germany to blind people in Cameroon.
The U.S. accounts for fewer than 20 percent of the 108 projects that have launched worldwide, but it accounts for about half of the total funding committed to PFS ventures, according to new numbers released by Social Finance, one of the lead organizations overseeing several American PFS projects.
While she is a woman of many skills, she lacks an important one: English. Since she arrived in the United States four years ago, she has struggled to make a living. So when she learned about a free program called English for Advancement, which pairs workplace classes with one-on-one career counseling, she gave it a try.
Purpose-driven organizations are redefining the economic rules that have guided us since World War II and offer a perspective on how to accelerate the creation of a more holistic and inclusive capitalist system.