Youthful academic discussion of SIBs to start the week:
Social Impact Bonds: Do Benefits Outweigh The Drawbacks?
Through some combination of interest and luck, I have been listening to a lot of discussion of Social Impact Bonds, which are also known as Pay for Success programs, recently (see below for sources/more information). Social Impact Bonds are a form of nonprofit financing where a group of investors fund a nonprofit program which then reduces future government costs. When the nonprofit succeeds, the government repays investors under the terms of a pre-negotiated contract.
Like most people (especially, perhaps, people my age (30, this year!) and others who generally believe in the power of “new” ideas born in our generation), I have maintained an optimistic, if skeptical, opinion of the promise of Social Impact Bonds. We have heard a lot about the benefits of SIB programs. Although I won’t expand on these too much (you can find more discussion elsewhere), I’ve compiled some that have been repeatedly mentioned to me.