Big Bets For Social Turnarounds
social turnarounds: The process of integrating Big bet philanthropy with Private equity practices to enable nonprofits to build infrastructure and services to meet the demands of a social issue.
MCP is developing Big Bet growth plans with nonprofit management teams in the social services arena (homelessness, early learning, prisoner reentry, mental health services, and others). Scale in these areas result in large cost savings to governments. Such cost savings can be used to further fund additional nonprofit work with an end goal of achieving sustainability.
This approach builds on Pay-For-Success contracts (or Social Impact Bonds) employed in various states in the U.S. and many countries around the world, and related performance contracts. MCP advocates for the use of philanthropy to fund these, so that payments accrue to the sustainability of the nonprofits. These interventions provide government cost savings by treating citizens through alternative means, at lower costs than current methods such as incarceration and emergency room care.
Big Bets in these sectors will allow nonprofits to meet the whole demand for services for their social issue in a community, while achieving sustainability for itself. This is a Social Turnaround.
MCP has developed Big Bet detailed growth plans in early learning ($175 million), homeless housing ($85 million) and poverty reduction through placed-based initiatives ($100 million). Each of these are highly replicable across the U.S. and abroad.
Here is our first Big Bet growth plan in homeless housing: