From the Chronicle of Philanthropy – one opinion on the social finance movement:
“Most of the problems America faces today represent the failures of institutions, not individuals.
It’s not people who need to be fixed, it’s our society. So does it make sense to create new capital investment opportunities that will generate profits by serving the needy individuals that our society continues to produce? What inevitably happens, do you think, if these social-impact bonds start producing large investment returns?
Certainly individuals need education, decent health care, and other critical services, but let’s not turn these programs into investment profit centers. It is absurd that at the same time political leaders cut money for nonprofit programs and steadfastly refuse to increase taxes to pay for what needs to done, they come up with new avenues for the nation’s most affluent businesses and people to make a profit in meeting public needs.
Taking a long-range view of social programs and using reasonable and coherent measures to improve their performance is a worthy goal. But we don’t need social-impact bonds for that. Commercializing social projects is not the solution; putting more money into programs government and donors can support—and that are accountable and serve everyone in need—will do more good.”
Click here to read full article
Filed under: Diversity, Governance, Leadership Research, Leadership Training | Tagged: alternative finance models, nonprofits, opinion, social finance, social impact bonds | Leave a Comment »
