Outcomes-Based Financing Example
Massachusetts Pathways to Economic Advancement Project
The Commonwealth of Massachusetts, and two nonprofit organizations, Jewish Vocational Services and Social Finance, are partnering on a workforce development program. Social Finance raised $12.43 million from 40 investors including financial institutions, donor advised funds, individuals, and foundations, to fund JVS services.
The program, the Massachusetts Pathways to Economic Advancement Project, will deliver services to approximately 2,000 adults in Greater Boston over three years. Vocational English language classes integrated with job search assistance and coaching will assist limited English speakers, including undocumented immigrants and refugees, in making successful transitions to employment, higher wage jobs, and higher education. If the program participants meet performance targets for employment and education, investors will be repaid for their investment. If performance targets are not met, investors can lose some or all of their investment.