A less risky option for sustainability

The idea of social impact bonds brings me back to a question I had for my first post- Why don't all non-profits operate as social enterprises in order to have more financial flexibility and not be tied down by donor's demands for the the use of their money? The simplest answer 9thought possibly not the right answer) seems to be that most people who run non-profits might just not have the entrepreneurial skills to successfully run an enterprise that will continually make a profit. Social impact bonds seem to create an easier way for non-profits to get out of the rut of dependance on donations, without having to take the risk of becoming a business.

With the help of intermediaries, non-profits can grow in scale, but also grow in potential. Although intermediaries aren't directly involved in the daily routine of operating the non-profits in which they invest, they have the responsibility (and the personal interest, of course) of making sure the non-profit is being run successfully. Furthermore, there are evaluation advisers and independent assessors that also monitor the performance, and can suggest changes to the operations as necessary. This is essentially free business support for non-profits. The non-profits are thus able to scale up their operations under the guidance and with the investment of private investors, until they are successful enough for the government to get involved.

As of now, it seems the projects toward which social impact bonds are aimed are limited to necessities like shelter, health care, and foster care, but it's plausible that this scope will widen if these become successful. So if social impact bonds succeed and become widespread, what effect will that have on social enterprises? Does it seem likely that many social innovators will turn to these intermediaries, and eventually the government, for sustainability? Will there be a more marked division of those who innovate and those who invest as social innovators decide to take this new, promising route in lieu of searching for other entrepreneurial options?