Issuing Bonds to Invest in People
The New York Times Fixes section highlights the Family Stability Pay for Success project in Connecticut aimed at reducing parental substance use for DCF-involved families. The article mentions Pay for Success (PFS) programs across the US and describes how this approach works to improve social outcomes. It also describes how PFS differs from standard social programs: raising upfront money to do prevention, concentrating resources on what works, and focusing attention on outcomes rather than outputs.
“Social investing is now mainstream, a guiding principle for trillions of dollars in assets. That money, however, has been available to only a small group of people. Social impact bonds can begin to change that.” --Tracy Palandjian, Social Finance