Rikers Island Social Impact Bond
Helping Teenagers Through Social Impact Bonds
Goldman Sachs, in partnership with the City of New York and Bloomberg Philanthropies, financed the nation’s first Social Impact Bond to reduce the rate of reincarceration among 16- to 18-year-olds incarcerated on Rikers Island. We provided a $9.6 million loan to fund delivery of a specialized curriculum that provides therapeutic services for adolescents at Rikers. Although not technically bonds, so-called Social Impact Bonds are emerging financing instruments that leverage private investment to support high-impact social programs, and we are the first financial institution to invest in this product. The Rikers investment will result in better outcomes for incarcerated youth, allowing them the opportunity to be productive citizens while alleviating some of the financial burden on taxpayers and generating savings for New York City through lower incarceration costs.