New York has an average daily prison population of almost 60,000 inmates and spends approximately $6 billion a year on incarceration. Over 50% of former prisoners return to prison within 5 years of release and former prisoners in New York are faced with multiple challenges upon release including lack of employment options, homelessness, mental illness and substance abuse.
The New York State Workforce Re-Entry Social Impact Partnership was set up to increase employment among 2,000 formerly incarcerated men in NY State. To achieve these aims, Social Finance USA structured a Social Impact Bond (SIB), which is an innovative financing tool where impact investors provide working capital for the programme and are only repaid if the project delivers measurable benefits. Hampshire Foundation made a PRI investment into the SIB and will be repaid by NY State if the programme successfully supports the ex-offenders into stable employment and reduces re-offending rates.
Start Date: 2012
End Date: 2019
Region(s): New York