HuffPo highlights why 2014 could be a big year for SIBs:
Why 2014 Will See A Surge In Social Change
More Support For And From Social Impact Bonds
The White House fiscal 2014 budget, which was released in April, includes a government reform proposal to finance social programs. The Pay for Success model, which is currently being tested in the United Kingdom and Australia, is using social impact bonds to fund social interventions in exchange for a return on investment if the programs are successful.
While they’re still very much in the experimental phase in the U.S., social impact bonds are making some headway. The Boston-based nonprofit Roca, which aims to steer at-risk youth from violence and poverty, was chosen by the government of Massachusetts to be part of its Pay for Success pilot. According to Boston.com, the program has proposed an intervention program that would work with an estimated 650 young offenders and cost $11 million over four years. Roca estimated the initiative would save $25 million to $38 million in prison costs by reducing the incarceration rate.