The nonprofit and private sectors were abuzz this summer with news of advancements in Pay for Success and Social Impact Bonds in New York City and Massachusetts. I was fortunate to be working for the summer as a Senior Analyst at Third Sector Capital Partners, a leader in social innovation financing and the firm selected to oversee the first-in-the-nation initiatives in Massachusetts.
What is social innovation financing? Each year, the U.S. spends billions of dollars on social programs that fail to achieve measurable impact. At the same time, there are limited funds to grow programs with documented results. Pay for Success programs, when combined with innovative social financing mechanisms, present opportunities to create unique public-private partnerships to redirect resources towards preventative initiatives that measurably improve lives.
As a member of the Third Sector team I was able to apply many of the skills I acquired during my first year at BU - from excel modeling and preparing presentations for negotiations with the state to creating a new company website and writing a case study. Working for Third Sector was the perfect application of business acumen to solving a key issue for nonprofits and governments nationwide. At the end of the summer I will stay on part-time at Third Sector.
I landed at Third Sector by serving as a New Sector Summer Fellow. The fellowship provided the opportunity to receive additional trainings and interactions with other MBAs and students from across the country working in Boston for the summer.
Tim Pennell is a 2nd Year MBA in the Public & Non-Profit concentration. Prior to BU, Tim worked in fundraising for a symphony orchestra. This fall he is continuing work part-time with Third Sector Capital Partners, his summer employer.