This awardee has received supplemental funding. This award detail page includes information about both the original award and supplemental awards.
Description of original award (Fiscal Year 2012, $349,811)
The Urban Institute's Justice Policy Center will develop a blueprint for municipal, state, and federal governments to use Social Impact Bonds (SIB) to pay for evidence-based anti-crime programs, that otherwise could not be funded which will have benefits across the criminal justice system. They will support the following activities: (1) A comprehensive review of the SIB and allied literature; (2) the development of a model to identify a cost-effective, evidence-based portfolio of criminal justice interventions best-suited for social impact bond issuance; (3) a blueprint of the bond structure and payoffs contingent on risk; and (4) a cost-benefit model to identify candidate programs for SIB funding; a model for bond pricing and payoff thresholds and a blueprint to integrate the models.
The Urban Institute will use grant funding to create a cost-benefit tool that fills an important gap in the evolution of Pay for Success (PFS). PFS is an innovative financial tool to fund socially beneficial programs on a broader scale than government expenditures typically allow. The analysis tool will incorporate empirical evidence into the PFS pricing and performance target setting, which increases the transparency of the transaction and expand the number of investors and government funders in the PFS marketplace.