“Pay for Success Bonds”


Other | February 28, 2011

Files: DOC | 27 kb | 2 pages

An initiative begun by the United Kingdom to "bring some of the competitive discipline of the market to government programs," Pay for Success bonds (also known as social impact bonds or social return on investment) are being introduced in the United States and Australia as they are being tested out in the United Kingdom.

Here are some interesting articles on these bonds and what they could mean for nonprofits and not-for-profits:

For Federal Programs, a Taste of Market Discipline -
The New York Times, February 8, 2011

Commentary: What Social Impact Bonds Really Mean for Philanthropy - Council on Foundations, February 14, 2011

Performance bonds: Who succeeds gets paid - The Economist, February 17, 2011

Social Return on Investment Collection - REDF, 2000

In addition, please see a writeup created by the Centre for Social Impact NSW including further links.