NPX’s first pay-for-success financing exceeds impact targets
SAN FRANCISCO, September 30, 2021 / PRNewswire / – NPX, a company that is transforming the way nonprofits are funded by explicitly linking capital to results, and The last mile (TLM), a non-profit organization that prepares incarcerated people for successful reintegration into society, jointly announced today that its 4-year Pay-for-Success funding has reached 113% of its target impact .
NPX’s first “Pay-for-Success” financing structure, known as Impact Security, is an exclusive financial product developed by NPX and Anna pinedo, Partner and Co-Leader of the Global Capital Markets practice at Mayer brown, which brings together donors and impact investors to fund impact-based nonprofits. Impact Security is similar to a Social Impact Bond (SIB), but with private philanthropists serving as the final payer instead of the government.
TLM used Impact Security’s capital to fund the very first web development store in an American prison, known as TLM Works. Tech companies, startups, nonprofits, and governments outsource coding work to TLM Works. TLM Works participants are hired and paid to do the work, allowing them to build a portfolio of prison experiences that can lead to employment outside of prison. Work is a key driver in reducing recidivism.
Impact Security has aligned TLM Works, donors and investors around a single indicator: the hours worked by participants. This focus and alignment paid off: the program exceeded its targets and recorded 0% recidivism among returning citizens.
– 20,298 participant-hours worked vs 18,000 target
– Paid 16 $–$ 20/ hour, 55x the average salary in prison
– 89% of TLM alumni are employed – companies hiring include Slack, Dropbox, Square, Zoom, Snap, Pilot, Checkr, Datastax, Plaid, Affirm, VMWare, Chan Zuckerberg Initiative and others
“Impact Security has allowed us to exceed our goal of helping those affected by justice prepare for careers in technology upon release and ensure that none of the program participants return to prison,” said declared Beverly parenti, executive director of The Last Mile. “It gave us a 4-year track and a metric to report on, which allowed us to focus on our work and deliver impactful results.”
The design of Impact Security has also demonstrated early success in attracting new capital from investors, who have few opportunities to invest in nonprofit organizations, and by allowing donors to pay for the results. times they happen. A total of 27 investors and donors took part in the operation.
“If you’re an investor who wants to make an impact, this is the way to do it,” said Marc Newhouse, founder of the Left Behind Worker’s Fund and investor in the project. “As ROI is uniquely determined by impact, this model powerfully aligns both the investor and the invested entity to work to maximize impact.”
Lindsay beck & Catarina schwab, co-founders and co-CEOs of NPX, shared their gratitude and plans for growth. “We are grateful to the donors, investors and TLM Works who have enabled this new product to be introduced and successfully implemented in the market,” said Catarina schwab. “With this pioneering effort, we are now able to replicate and evolve this model to raise more money and achieve better results for organizations in the area of impact,” said Lindsay beck.
To learn more about this offer, please see Last Mile Impact Safety Case Study.
NPX is transforming the way nonprofits are funded by explicitly linking capital to impact. Learn more about www.npxadvisors.com.
About the last mile
The Last Mile (TLM) is a non-profit organization that prepares incarcerated people for successful reintegration through business and technology training. Learn more about www.thelastmile.org.