In May 2018, NPX and The Last Mile launched the first-ever Impact Security, a results-based financing structure used to fund a coding-focused workforce development program inside San Quentin prison. The deal successfully concluded in April 2021. TLM achieved 113% of its impact target, resulting in maximum return for investors and results-based payments for donors.
The Impact Security represents a powerful new way to fund impact using a standardized financial product that explicitly links capital with impact. The standardization and transparency inherent in the Impact Security structure fosters integrity and promotes broader participation in the emerging impact investing and pay-for-success sectors. By expanding the options of donors, investors and nonprofit organizations in an efficient, performance-focused way, the Impact Security will accelerate the growth of the impact market and market infrastructure, further transforming the way the world finances impact.
NPX has developed a powerful new financial product that brings together private donors, impact investors and nonprofit organizations to finance impact. Our infographic explains what the Impact Security is, how it works, how capital flows efficiently, and why it matters. It also includes a brief look at the difference between Social Impact Bonds and the Impact Security and the benefits of the Impact Security in the nonprofit economy.