Bostonians Changing the World
Tracy Palandjian’s push for social impact bonds
The Boston start-up she heads, Social Finance Inc., seeks to fund social service programs in a very different way.
Tracy Palandjian heads Social Finance Inc., a Boston start-up that seeks to fund social service programs in a very different way. With social impact bonds, private investors cover the upfront costs of social service programs. The government pays them back with interest--but only if the programs achieve certain goals. So programs get funding they desperately need, but taxpayers foot the bill only when the initiatives succeed.