#358: Impact Investing's Answer to #BlackLivesMatter
Read the full Forbes article and watch the interview here: http://onforb.es/20FsXmG. subscribe to this podcast on iTunes by clicking here: http://bit.ly/ymotwitunes or on Stitcher by clicking here: http://bit.ly/ymotwstitcher. It seems that hardly a day passes without headlines about unarmed black men being killed by police in our country. If there isn’t a new case, we’re trying an old one either in court or in the media. [Jump to page 2 to watch the live interview.] Ben Hecht, the CEO of Living Cities, a nonprofit group that makes and facilitates impact investments in cities around the country, including my own here in Salt Lake City, explains the broader problem: US cities are places of great opportunity, hope, change, resilience and energy. Unfortunately, they are also places of great inequality. Home to more than 80% of the population, cities reflect the incredible income, wealth and educational disparities between rich and poor, white and people of color. These disparities not only threaten to hold back the economic prosperity of the nation but threaten our democracy. Hecht’s colleague, Eileen Neely, Director of Capital Innovation, heads up the Pay for Success program efforts for Living Cities. Neely says, “We need to blend all types of money–government, philanthropic and private sector capital–together to address growing social disparities and economic inequality in the United States.” Pay for Success programs focus on paying for results rather than activities and typically are oriented toward prevention rather than remediation. Salt Lake County Mayor Ben McAdams has likened it to building guardrails at the top of the cliff rather than operating a hospital at the bottom. Neely explains further, “While preventative programs that tackle issues like youth recidivism and chronic homelessness can make a real difference, these programs lack the funding needed to reach all the populations that need them. We need to attract private capital to help expand and scale programs that work.” Read the full Forbes article and watch the interview here: http://onforb.es/20FsXmG. Please consider whether a friend or colleague might benefit from this piece and, if so, share it.