Do you believe in performance-based pay? That’s the premise behind social impact bonds (or SIBs): rather than mandating the delivery mechanism for change, a government agency specifies the social outcomes (aka results) it wants, then funds a nonprofit that meets them.
Jeffrey Liebman, professor of Public Policy at John F. Kennedy School of Government at Harvard University, suggested this innovative financing model, already in use in the U.K., as a way to accelerate social change. What kinds of social change?
Increased kindergarten readiness
Higher college completion rates
Fewer criminal offenses and incarceration rates
Higher the future earnings of laid-off workers
- Fewer hospital readmissions among patients with chronic illness
Could it work here?