"Social Impact Bonds" Come to Washington

"Social Impact Bonds" Come to Washington

Local governments around the country are experimenting with "Social Impact Bonds," a new fundraising tool that leverages private investment to solve public problems.

Local governments are using a new fundraising tool to solve problems like homelessness and teen pregnancy. With Social Impact Bonds, private investors give money to non-profits to solve problems. If they are successful, government pays them back with interest. If they don't make their goals, they don't get paid. Kojo explores the potential of a business approach to public problems.

Guests

Jeffrey Liebman

Professor of Public Policy & Director of the Social Impact Bond Technical Assistance Lab (SIB Lab), Kennedy School of Government, Harvard University

Rick Cohen

National Correspondent, Nonprofit Quarterly

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The Kojo Nnamdi Show is produced by member-supported WAMU 88.5 in Washington DC.