New Philanthropy Capital

New Philanthropy Capital (NPC) is the leading organization advancing strategic philanthropy in the United Kingdom. It offers donor advisory services and serves as a think tank that conducts both analysis of nonprofit performance and high-quality research about philanthropy in the U.K. NPC helped to develop the first Social Impact Bond (SIB), a new financial instrument designed to better align incentives for nonprofits, private funders (investors), and government agencies. The way this works is that governments pay nonprofits for successful outcomes rather than the provision of services. So, private investors provide the up-front capital for service provision and then get their money back with a return (like buying a bond) when the nonprofit demonstrates that it has met or exceeded its targets. If the nonprofit doesn’t meet or exceed targets, the government doesn’t pay or pays less, and investors get a negative return. The SIB field is beginning to grow in the United States as well, with the Obama Administration planning for $100 million in pilot programs. SIB-focused grants on this docket are to New Profit and Nonprofit Finance Fund.

New Philanthropy Capital is the leading organization advancing strategic philanthropy in the United Kingdom. They offer donor advisory services, analysis of nonprofit performance, and high-quality research about philanthropy in the U.K. Further, New Philanthropy's insights regularly influence journalists and philanthropists in the U.S. For example, they helped to develop social impact bonds, a new financial instrument that helps align the incentives of nonprofits, private investors, and government agencies. A £5 million pilot test of social impact bonds is underway in the U.K., and the Obama administration has announced plans for $100 million in similar pilots in the U.S.