Considering the Allure and Peril of Nonprofit Social Impact Bond Arrangements

16 Pages Posted: 21 Sep 2019

See all articles by Norman I. Silber

Norman I. Silber

Hofstra University School of Law; Yale University - Law School

Date Written: September 20, 2019


This essay considers Social Impact Bonds not from the point of view of the Investor, or the Government, or the Service Population, but from the vantage point of nonprofit organization officers and directors who contemplate a SIB venture. From this perspective, not all the foreseeable perils have been fleshed out in the academic literature or elsewhere—although perhaps they are fleshed out in the fine print of disclosure statements contained in private agreements among the parties that usually are read closely by lawyers for their nonprofit clients. Still, important elements of these agreements are not salient or even publicly available. What financial, litigation and reputational risks should be faced by a nonprofit organization that is considering entrance into a SIBS agreement? What does the embrace of SIBS say about the larger privatization of social contract? These and related questions are addressed in a presentation that was made to nonprofit law specialists in 2014 at the Annual Conference of the Association for Research on Nonprofit Organizations and Voluntary Associations.

JEL Classification: K10, K12, K19, K22 ,K30, K34, G24, G32, G30, H27, H41, H43, H44, M2, M21

Suggested Citation

Silber, Norman I., Considering the Allure and Peril of Nonprofit Social Impact Bond Arrangements (September 20, 2019). Available at SSRN: or

Norman I. Silber (Contact Author)

Hofstra University School of Law ( email )

121 Hofstra University
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United States
516 463 5866 (Phone)
516 463 4962 (Fax)

Yale University - Law School

P.O. Box 208215
New Haven, CT 06520-8215
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