What Can Venture Capitalists Do For Recently-Released Prisoners?
National Journal
On Fridays, people recently released from prison head to Center for Employment Opportunities in New York City for an orientation session. It's the start of a year-long relationship in which they work on a transitional work crew, learn how to search for a job with a criminal conviction, and figure out how to hold down steady employment.
"People who are at the highest risk are closest to release [from prison]. If you can get over that hump, we think that's keeping people from re-offending," says Marta Nelson, Executive Director of CEO New York City.
While the program may seem like any other recidivism prevention initiative, what makes it a one-of-a-kind is how it's funded: by private, high-net-worth investors.
In December 2013, Governor Anthony Cuomo announced the start of New York's Pay For Success program, the first state-led social impact bond. Private investors put up $13.5 million to expand a social program with a proven-track record, and they expect a return on their investment if the program meets specific performance standards. The state ends up saving money it would have otherwise spent on incarcerating people, and investors can even earn a profit.
"The bottom line is it does not matter where you work – a Fortune 500 company, in the government, or a non-profit – we're all tax payers and we all have to pay to incarcerate people," says Alphonso David, Cuomo's Deputy Secretary for Civil Rights.
The program focuses on people at a high-risk of ending up back in prison; CEO has reduced recidivism among its participants up to 22 percent, according to a study by nonpartisan social policy research organization MDRC. The Pay For Success investment allows CEO to serve an additional 500 people every year......
