← 2026–2030 Strategic Plan Cost, return and public benefit

The Economics

PEP has a proven, data-driven cost model validated against 2023–2025 actuals. As the portfolio scales, cost per participant falls sharply while total public benefit rises.

1.9×Return on total program investment$8.6M taxpayer benefit on a $4.5M program budget, 2026 projection
15×Return per prevented reincarceration$6,554 invested generates ~$100,000 in public benefit
$23.8MAnnual taxpayer savings by 2030Up from $8.6M as the portfolio scales to 13,834
Blended cost per participant Unduplicated individuals, with total participants reached shown beneath each year. Fixed-cost leverage and a mix shift toward lower-cost channels drive the decline.
$0k $2k $4k $5k $7k $6,307 2024 700 2025 746 $4,749 2026 4,710 $967 2027 6,287 2028 8,483 2029 11,168 $728 2030 13,834
Where the ~$100,000 benefit per prevented reincarceration comes from Benefit composition analysis by Harvard Business School affiliate ICIC, 2018.
  • 52% Wages, taxes and businesses launched
  • 37% Avoided incarceration and processing
  • 11% Reduced public assistance

Toward a more resilient revenue base

Revenue streamToday2030 targetWhat drives it
Philanthropy ~75% ~55% Major gifts, foundation grants, annual fund. Core of the model, declining as a share as other streams grow.
Government contracts ~10% ~20% State per-participant contracts for Online programming on a cost-avoidance model.
Earned revenue ~15% ~20% Entre Capital interest income, housing rental fees, business profit-sharing, PEPUSA affiliate licensing.
Impact investment — ~5% Targeted real estate capital from impact investors in select markets.

In its 22-year history PEP has never received public funding. The government per-participant contract model is a strategy, not a current revenue line.