8 Sobering Thoughts for Social Impact Bond Supporters

At the Council on Foundations’ annual meeting, during a plenary on the state of philanthropy, White House Social Innovation and Civic Participation Director Jonathan Greenblatt touted the potential of “social impact bonds,” or, in the Obama administration’s nomenclature, “pay for success.” It’s hard to imagine a concept that has taken off quite like social impact bonds — which aren’t actually bonds, but more like equity investments in social problems with a government payout of costs plus an investment return if the programs meet predetermined outcomes.