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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: Liz Bartolomeo (poverty, health care)
202.481.8151 or lbartolomeo@americanprogress.org

Print: Tom Caiazza (foreign policy, energy and environment, LGBT issues, gun-violence prevention)
202.481.7141 or tcaiazza@americanprogress.org

Print: Allison Preiss (economy, education)
202.478.6331 or apreiss@americanprogress.org

Print: Tanya Arditi (immigration, Progress 2050, race issues, demographics, criminal justice, Legal Progress)
202.741.6258 or tarditi@americanprogress.org

Print: Chelsea Kiene (women's issues, Talk Poverty, faith)
202.478.5328 or ckiene@americanprogress.org

Print: Elise Shulman (oceans)
202.796.9705 or eshulman@americanprogress.org

Spanish-language and ethnic media: Jennifer Molina
202.796.9706 or jmolina@americanprogress.org

TV: Rachel Rosen
202.483.2675 or rrosen@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