December 2017 Bar Bulletin
By Mark Phelps
What if donors could get a financial return on their gifts to charities? Would they donate more money? Would they become more involved in the nonprofit organizations they support? Would programs have better outcomes? These questions are being explored as local donors begin to learn about investing in “development impact bonds,” a fairly new financial instrument that weds financial returns to social impact and development.
These are becoming more common for international nonprofits working in the developing world. Their complex structure requires the involvement of attorneys for all parties taking part in negotiating and drafting the terms of the agreements.
These bonds contrast with the traditional...