“For Ambitious Nonprofits, Capital to Grow”
by DAVID BORNSTEIN – New York Times – June 27, 2012
Imagine that you’re an entrepreneur running a chain of coffee bars and you want to raise capital to open up in new locations. You meet a potential investor, and he says, “I’d love to finance your business, but only the chai latte operation, not the coffee, and only to support drinks you sell in Cleveland next year.”
It might sound absurd, but this is the kind of thing that people running nonprofit organizations hear all the time. Whether
“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
