Key Partners in NYC's Social Impact Bond

 

A Social Impact Bond (SIB) encourages private investment in the scaling of evidence-based preventive services with the goal of spurring innovation and increasing accountability. Investors provide financing for federal, state, or locally-run programs with the potential to achieve savings for government budgets or returns for society at large, for example, a reduction in incarceration. If the program meets pre-established outcome goals, the government entity uses the savings to pay back investors with interest. An intermediary organization may put the pieces of a SIB together, making a match between the government and the investors and overseeing program operations. MDRC plays this role in the Adolescent Behavioral Learning Experience (ABLE), which is implementing a cognitive behavioral therapy program for youth detained at New York City’s Rikers Island with the goal of reducing recidivism by at least 10 percent. A look at how the SIB is structured and the key partners: