Massachusetts ROCA Program in Juvenile Justice – January 2014

Beginning in 2011, the Commonwealth of Massachusetts began soliciting information from potential service providers about possible interventions, resulting in an August 2012 Request for Proposals for two projects – one in the field of juvenile justice, and the other in the area of chronic homelessness.

Third Sector Capital of Boston was named as the financial intermediary and fundraiser for both programs. The Commonwealth authorized a commitment of up to $50 million to repay potential investors for providing the upfront funds to launch the intervention.

In January 2014, the  juvenile  justice project was finalized, with nonprofit Roca to provide intensive outreach, like skills and employment training based on cognitive behavioral intervention, to re-engage young people and help them move out of violence, incarceration and poverty and into education, like skills and employment training. The project will serve 929 young men aged 17-23 and the target is to reduce the number  of days the young men are incarcerated. Third Sector Capital Partners it the intermediary and other partners are the Commonwealth, the US Department of Labor and various  private and philanthropic funders and investors. Click here for the press release and click here for the executed Roca contract.

 

New York State Social Impact Bond: Employment of Reentry Populations – December 2013

The year 2013 closed with the announcement of a major New York State Social Impact Bond project with CEO, a nonprofit devoted to securing employment for reentry clients.

Based in New York City, but expanding nationally, CEO has developed a sophisticated program for providing training and support and securing employment for formerly incarcerated individuals, and for tracking the progress and needs of its participants.

The financial intermediary in this transaction is Social Finance U.S., which has been working with CEO on the project for more than two years. (The project was originally conceived as an effort to replicate the New York program in Connecticut as the nation’s first Social Impact Bond, but was not consummated when Connecticut failed to receive a federal Second Chance Act grant that was to have paid for program design and initial implementation.)

The newly-announced New York State Social Impact Bond adheres more closely to the classic protocols for SIBs which were initially advanced at the outset of the SIB movement in the U.S. More Information

 

New York City Recidivism Project: Adolescent Men at Rikers Island Jail – August 2012

The first official Social Impact Bond undertaking in the US was announced in August 2012 by the City of New York.

The proposed program consisted of a four-year project designed to reduce the recidivism rate for adolescent men incarcerated at New York’s Rikers Island jail. Goldman Sachs committed to providing a $9.6 million loan to finance the program, which was based on a program called “ABLE” (Adolescent Behavioral Learning Experience) piloted by the Bloomberg administration’s Young Men’s Initiative. Notably, the Goldman Sachs investment was backed by a $7.2 million guarantee from Bloomberg Philanthropies, thus significantly reducing the financial exposure of Goldman Sachs should the program fail to meet its targeted objectives.

The intermediary designated to report the results of the intervention was MDRC, a leading social policy organization with experience in measuring transitional job programs. More Information