Human Capital Performance Bonds

Human Capital Performance Bonds are a way to begin a financing system that attracts new investment capital while also holding nonprofits and government accountable for generating quantifiable economic value from its social programming. We can then reward the accomplishment of positive long-term outcomes rather than simply increasing our outputs (e.g., the number of people served by a program), which is what we typically do now.

Once nonprofits start demonstrating economic value and government captures it in higher tax revenues and lower costs, government can interest private investors in providing long-term capital to finance even more economic (and social) gains.

The Citizens League is involved in developing the pilot legislation on human capital performance bonds. Read more about how they work here. The main work now is identifying a non-profit to pilot in one of these three areas:

o   Workforce development

o   Troubled youth

o   Homeless services