SIBs as currently designed are not sustainable for the nonprofit sector unless they include the delivery organization in contract negotiation, program and evaluation design, ensure full cost recovery and include revenue sharing for the nonprofit.
In addition, participants in programs need to be treated with respect and good faith. They cannot be harmed by their participation in a SIB program or left without needed supports. Government needs to do more than pay a premium for testing a program model. They need to commit to incorporating successful programs and the participants into their service systems at the end of the SIB. If these design features are present in social impact bonds, this financing method may have a place in the spectrum of program financing.