Considering the Allure and Peril of Nonprofit Social Impact Bond Arrangements
16 Pages Posted: 21 Sep 2019
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: Suggested Citation