connects private capital, nonprofits, foundations, governments and financial institutions to structure and manage innovative financing for local programs to improve the lives of people in need. This includes Pay for Success
, which brings nonprofit and investment funds to projects with promising outcomes. When those outcomes yield measurable, positive results, government entities take on the funding and investors (and society) gain a return. Part of Social Finance’s work is to develop Pay for Success projects and mobilize capital to finance them, as well as to provide ongoing support in project governance, performance measurement and more.
In Massachusetts, for example, Pathways to Economic Advancement
is a Pay for Success project in full swing, providing job training through Jewish Vocational Service
(JVS), another Foundation grantee, specifically to immigrants and refugees.
The Boston Foundation was “there at the beginning” for Social Finance in 2011 with a three-year grant of $250,000 for general operating support.