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New Financing Tool for Social Programs Opens Doors for Juvenile Justice
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New Financing Tool for Social Programs Opens Doors for Juvenile Justice

Kristina Costa explains how Social Impact Bonds help solve some of the challenges facing juvenile justice.

Authors

  • Kristina Costa
Part of a Series

Identifying the best programs for solving serious social problems is challenging for governments in the best of times, and all the more so in a constrained fiscal environment where every dollar must count. This is particularly true in areas like juvenile justice where the most effective interventions may involve combining approaches that governments currently support through separate funding streams—and where politicians’ personal views may steer disproportionate amounts of funds to programs that sound good on paper but don’t deliver results.

But an innovative new financing tool called Social Impact Bonds may help solve some of these challenges. Social Impact Bonds, or SIBs, take traditional government funding structures and turn them on their head. Instead of paying costs upfront for a prescribed set of services, SIBs allow governments to define outcomes they want to achieve—and not pay a dime if those goals are not met.

The above excerpt was originally published in Reclaiming Futures. Click here to view the full article.

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Authors

Kristina Costa

Senior Fellow

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Inside a Social Impact Bond Agreement
The Social Impact Bond agreement itself—the contract signed by the government agency and the  external organization—is critically important to the success or failure  of a Social Impact Bond. (Flickr/<a href=http://www.flickr.com/photos/masshighered/7135676497/masshighered)" data-srcset="https://www.americanprogress.org/wp-content/uploads/2012/05/sib_agreement_onpage.jpg?w=450 450w, https://www.americanprogress.org/wp-content/uploads/2012/05/sib_agreement_onpage.jpg?w=450 450w, https://www.americanprogress.org/wp-content/uploads/2012/05/sib_agreement_onpage.jpg?w=450 450w, https://www.americanprogress.org/wp-content/uploads/2012/05/sib_agreement_onpage.jpg?w=450 450w, https://www.americanprogress.org/wp-content/uploads/2012/05/sib_agreement_onpage.jpg?w=250 250w" data-sizes="auto" />

Inside a Social Impact Bond Agreement

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