US Cities Use SIBs to Tackle Social Issues
The global adoption of Social Impact Bonds (SIB) includes a handful of American cities whose mayors are experimenting with the pay-for-success model to finance solutions to homelessness, among other social issues. Indeed, according to Social Finance housing issues make up one third of SIB deployments globally. Denver is using SIBs to finance programs to keep the homeless out of jail. Denver agreed to pay the eight local and national foundations and funds that invested a certain rate—a bit over $15—for each day the 250 participants are stably housed and not in jail, up to around $11.4 million. Through the project’s first 18 months, it surpassed agreed benchmarks.