Canadian unions eager to diss SIBs – isn’t the trick to prove that there was an economic benefit? After all, the issue of vast overheads is fairly endemic in the overall NGO structure…
Canada – 60% of Social Impact Bond Funds Spent On Overhead And Profits
NUPGE
“When Social Impact Bonds first appeared we expected that they would prove to be more expensive, but this is even worse than what we expected.” — James Clancy, NUPGE National President.
Based on figures from the intermediary group running the first Social Impact Bond project funded by the Canadian government, 60 per cent of the funds are being spent on overhead and investor profits.
‘Don’t Expect Too Much From SIBs’, Says NPC
Hugh Radojev – Civil Society
New Philanthropy Capital has urged the Chancellor not to expect too much, too soon from Social Impact Bonds in a pre-Budget paper.
The paper, entitled A balancing act: Charities and the 2016 Budget, said that SIBs are “still a nascent market” and warned that “there is a risk that too much is being expected of them too soon”.
NPC argued that not enough is known in the sector about social investment products and regulation and said that “there is insufficient demand from social organisations, many of which lack the financial skills and knowledge to manage such investments”.