“Investors May Fund Social Programs:
State Exploring ‘Pay For Success’; Profits Would Be Tied to Cost Savings”
by TODD WALLACK – Boston Globe – June 27, 2011
Massachusetts could be among the first states in the country to raise money for social services by offering investors the chance to earn profits on programs they establish.
The approach is known as “social impact bonds” or “pay for success.” It is based on the idea that if programs backed by investors succeed in reducing, for example, the number of inmates in prison or the homeless population, governments will realize big savings, which they can tap