The sequestration that has forced across-the-board federal budget cuts is an opportunity for the impact investing industry.

Extract government. Insert impact investors.

Here’s how: Much like the Social Bond program in the United Kingdom (dubbed "Big Society,") or some of the statewide programs in Massachusetts and elsewhere that allow private enterprises to take over and run facilities aimed at the public good, impact investment programs funded by private investors can relieve the budget burden. Simply put, private enterprises run programs traditionally operated by governments (schools, prisons, rehabilitation programs, etc.) with clear goals and milestones to be achieved. If successful, the program is taken over by the public sector and the private investors are paid back for their investments plus a set ROI.

Why? Because investments in social programs are expensive, as is managing them in their initial stages. Take this off the government’s shoulders and more money is freed up elsewhere.

Fans of Big Government won’t like this because they say it’s the government’s job to take care of its people and we can’t trust the private sector.

My response: Give the private sector incentives and you can trust it MORE than the government. Moreover, the fact that we have to turn to measures such as these proves we can’t trust Big Government to take care of its citizens anyway.

Fans of the private sector will scratch their heads at this and say there isn’t enough -- or any -- money in such programs.

My response: Not true. Take a look at what’s going on with Big Society in the U.K. as I mentioned before, or with the Goldman Sachs program in New York City and there is proof that solid returns can be had.

Recently, at The Skoll World Forum and the Oxford Jam, two major events in the impact investing world, there was a lot of talk of inefficient markets and, indeed, lack of markets altogether for impact investments to shine.

But by working to take over, begin or replace government programs, impact investments cannot only solve the market issue but plug budget gaps and problems. Community capital is what we need to fight sequestration and keep it from becoming chronic, because you know, you just know, this won’t be the last time we’ll see it.