[Link] Concrete steps are being taken towards futarchy

post by NoSignalNoNoise (AspiringRationalist) · 2013-06-14T00:21:46.423Z · LW · GW · Legacy · 4 comments

Article: Can investors make money in social services?

According to the article, six states are experimenting with funding social programs using "social impact bonds", which only pay out if the programs achieve their official objectives.  The project is in its early stages, so it's not clear what will happen if the market decides that a program isn't worth funding, but this looks quite promising.

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comment by [deleted] · 2013-06-14T02:54:23.612Z · LW(p) · GW(p)

In the USA, a secular social service and a religious organization can both claim tax exempt status. The secular service has to have a clearly stated objective, that objective must be measurable, and that objective must also be something that relieves the burden of the State to care for people. If all three conditions are met, that secular service can keep its tax exempt status. Religious organizations, meanwhile, need only to say they are religious organizations to keep their tax exempt status. They can do incredible work to help those in need... or nothing at all except count their donated money. I'd like to know if these 'social impact bonds' are available to religious groups as well.

Replies from: asr, jkaufman
↑ comment by asr · 2013-06-14T16:29:51.748Z · LW(p) · GW(p)

The secular service has to have a clearly stated objective, that objective must be measurable, and that objective must also be something that relieves the burden of the State to care for people.

I do not believe this is true. Universities and museums rarely have measurable objectives, often don't even have clear objectives, and are usually 501c3. Lobbying and advocacy groups like the Sierra Club are 501c3, despite not relieving the state of a burden.

↑ comment by jefftk (jkaufman) · 2013-06-14T15:34:06.041Z · LW(p) · GW(p)

The secular service has to have a clearly stated objective, that objective must be measurable, and that objective must also be something that relieves the burden of the State to care for people. If all three conditions are met, that secular service can keep its tax exempt status.

Where are you getting this? Most 501(c)3 non-profits in the US wouldn't meet that standard.