Social Impact Bonds

Bonds come in a variety of exotic types and one of the newest is a social impact bond. Through Goldman Sachs, New York City just offered a $9.6 million social impact bond to help Rikers Island inmates from returning to jail after they are released. Social impact bonds provide money upfront to nonprofits to provide social services. If the nonprofit doesn't meet its goal, the government doesn't lose money...and the investors won't get paid in full.