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What’s the Buzz About?

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Social Impact Bonds are the #1 philanthropy buzzword of 2011 according to the Chronicle of Philanthropy. So what’s all the fuss about? And how can the concept help the nonprofit sector?

In essence, Social Impact Bonds are an arrangement between government and an outside organization in which the government defines one or more outcomes and promises to pay a sum of money if they are achieved. The government commits to cooperate with the outside organization’s efforts to achieve the outcome, and also promises to leave it free to devise and implement its strategy.

Outcomes that might be suitable for Social Impact Bonds would include reducing re-offending, helping the unemployed secure work, helping children transition from foster care into adoption, or reducing drug dependency. In short, SIBs are potentially applicable to a large number of areas where nonprofits already work.

So what’s in it for nonprofits?

Read more here.

This article was originally published in Independent Sector.

To speak with our experts on this topic, please contact:

Print: Katie Peters (economy, education, poverty, Half in Ten Education Fund)
202.741.6285 or kpeters@americanprogress.org

Print: Anne Shoup (foreign policy and national security, energy, LGBT issues, health care, gun-violence prevention)
202.481.7146 or ashoup@americanprogress.org

Print: Crystal Patterson (immigration)
202.478.6350 or cpatterson@americanprogress.org

Print: Madeline Meth (women's issues, Legal Progress, higher education)
202.741.6277 or mmeth@americanprogress.org

Spanish-language and ethnic media: Tanya Arditi
202.741.6258 or tarditi@americanprogress.org

TV: Lindsay Hamilton
202.483.2675 or lhamilton@americanprogress.org

Radio: Chelsea Kiene
202.478.5328 or ckiene@americanprogress.org

 

This is part of a special series: Social Impact Bonds

For more from this series, click here