The Emergence of Social Impact Bonds

Last month, the state of Massachusetts launched a program to offer social impact bonds. These bonds, which are also called “Pay for Success Bonds” have been very successful in the UK, providing vital funding for social programs as well as handsome returns for investors. In fact, the UK had so much success, other countries, including Australia, Canada, Israel and now the United States, are launching their own versions of the program. But what’s the potential impact for communities and investors? Here’s a quick guide to understanding more about this new and interesting investment. How Do Social Impact Bonds Work? In…