California’s Social Innovation Financing Program

California’s Social Innovation Financing Program is a funding initiative that uses a partnership between government, private investors, and service providers to tackle social issues like homelessness and mental health. Investors provide upfront capital for programs designed to improve social outcomes. If the programs succeed, the state repays investors with returns linked to the achieved results. This approach aims to innovate solutions while minimizing risk for taxpayers and ensuring that funds are used effectively to address pressing societal needs. It fosters collaboration and encourages successful interventions through performance-based funding.