This case study from the Centre for Public Impact tells the story of “America’s first ‘Social Impact Bond’ (SIB) or ‘Pay for Success’ (PFS) transaction for early childhood education. … Applying social impact investing, the J.B. & M.K. Pritzker Family Foundation and Goldman Sachs funded the programme in return for a results-based payout. The first payments were made in 2015 and amounted to US$260,000. They will continue until June 2021, when the cohort in question completes sixth grade. … Goldman Sachs calculated that the savings in Year 1 for Cohort 1 were US$281,550, based on Utah’s special education add-on of US$2,607 per child. The New York Times, among others, questioned these results, as being based on a false premise. … However, Brenda Van Gorder, the director of preschool services at the local school district in Utah, stressed that the use of SIBs had led Goldman and the Pritzker Foundation to pay for a programme that the state of Utah would not have otherwise funded.”

This case is included in our list of TEN NOTABLE RESOURCES FOR PAY FOR SUCCESS.