The Biggest Social Impact Bond In The U.S. Will Keep At-Risk Young Men In Jobs And Out Of Prison
Tuesday, February 4, 2014
Roca, a 26-year-old Massachusetts organization that aids high-risk young men who are on track for incarceration and early death, has proven its worth with an effective model for keeping its participants out of jail and in steady jobs. Now the organization is getting a big boost from a seven year, $27 million social impact bond–the largest ever in the U.S.
Social impact bonds are a relatively new type of philanthropy where donors put money in social impact programs, which have specific and tangible goals and make money back (paid by the state of Massachusetts, which has received $11.7 million in funding for the project from the U.S. Department of Labor) only if those goals are met. In this case, Roca is participating in a randomized trial to see how its efforts in keeping young men out of prison compare to the norm.