Massachusetts Social Innovation Financing Program

The Massachusetts Social Innovation Financing Program is an initiative designed to support social services by using a “pay for success” model. This program raises funds from private investors to address social challenges, such as youth unemployment or homelessness. If the projects achieve specified outcomes, the state repays the investors with a return. This approach shifts financial risk away from taxpayers while encouraging innovative solutions to social problems. By aligning financial incentives with positive social outcomes, the program aims to enhance the effectiveness of public spending and improve the lives of Massachusetts residents.