Review:
Pay For Success Contracts
overall review score: 4.2
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score is between 0 and 5
Pay-for-success contracts, also known as social impact bonds, are a type of public-private partnership where investors provide funding for social programs with the expectation of receiving a return on investment if agreed-upon outcomes are achieved.
Key Features
- Private funding
- Outcome-based payments
- Performance metrics
Pros
- Innovative funding model for social programs
- Potential for better outcomes through performance incentives
Cons
- Complex structure with risks for investors
- Potential for misalignment of incentives