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Social Impact Bonds: Overview and Considerations

Abstract

One of the hottest topics in human services is "pay-for-success" approaches to government contracting. In this era of tight budgets and increased skepticism about the effectiveness of government-funded programs, the idea that the government could pay only for proven results has a broad appeal. And those who have identified prevention-focused models that have the potential to improve long-term outcomes and save the government money are deeply frustrated that they have been unable to attract the funding needed to take these programs to scale. Some advocates for expanded prevention efforts are confident that these programs could thrive under pay for success and see such an approach as a way to break out of the harmful cycle where what limited funds are available must be used to provide services for those who are already in crisis, and there are rarely sufficient funds to pay for prevention

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