Modern philanthropy is about results, not just money. Consider the partnership between Goldman Sachs, Bloomberg Philanthropies and the nonprofit MDRC. Goldman Sachs will invest $9.6 million in MDRC to create a program to reduce recidivism by at least 10 percent in adolescents released from New York City’s Rikers Island jail.

Bloomberg Philanthropies will provide a $7.2 million loan guarantee. If the program succeeds in reducing the recidivism rate by 10 percent, the New York City Department of Corrections will repay the full $9.6 million to Goldman, and MDRC will be able to use the loan for other programs. Goldman stands to profit by up to $2.1 million if the program exceeds a 10 percent drop. If the program does not reduce recidivism by at least 10 percent, the Bloomberg loan guarantee means Goldman will recoup some of its investment.

The partnership is called a social impact bond. Susan Raymond, Ph.D., executive vice president of research, evaluation, and strategic planning for Changing Our World, Inc., in New York City, laid out the evolution of philanthropy and the nature and expectations of modern philanthropists during a lecture at the National Catholic Development Conference’s 44th annual conference and exposition in Nashville, Tenn., on Tuesday. The talk was titled “I Keep My Eyes Wide Open All The Time: Navigating The New World of Philanthropy and Social Investing....”

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