An independent monitors judged the results. Organized a central player, as charitable associations, Government and investors work together it works so: that social programs be financed not by the State, but by private investors and foundations. In Peterborough 17 investors support the initiative foundations, which have invested 5 million in total, all of them. The money managed a company called social finance, which passes it to social organizations. You will supervise the prisoners in jail then and help the laid-off the job and apartment search. Jane Newman, a Director of social finance, explained: “the advantage is, that social organizations can concentrate on their work and are not thus engaged, to raise money. The Incentives is needed to convince investors to put their money in such a project.
At social impact bonds are there in addition to the benefit nor a second: the prospect of profits. The project is successful, everyone who gave money, will receive the invested amount back plus a rate of return. The State pays the return, because he can save lots of money by the social bonds. He must not finance projects, can so to lose any money if something goes wrong. If but increasingly private investors promoting social projects, not dismiss them the State from its responsibility? Also, it can happen that only projects which are well marketed by promoters are paid, and other important fall under the table. (The online world 13.12.2012) Also Goldman Sachs with social programs financed by bonds in terms of reducing crime rates has distinguished itself in the United States.
It sounds like a nasty satire – and is reality: the investment bankers Goldman Sachs speculate with a new financial product on the rehabilitation rate of U.S. convicts. The project could make school. The kicker: he needs numbers only in case of success. A social-impact Bond makes it possible. The idea: An investor makes money, a social media coaches vulnerable ex-prisoners with education gives them.