Social Finance
Social Impact Bonds

“The hottest idea in social-service provision” – The New York Times

Social Impact Bonds

A SIB is a financial mechanism in which investors pay for a set of interventions to improve a social outcome that is of social and/or financial interest to a government commissioner.

If the social outcome improves, the government commissioner repays the investors for their initial investment plus a return for the financial risks they took. If the social outcomes are not achieved, the investors stand to lose their investment.

Social Impact Bonds provide investment to address social problems and look to fund preventative interventions. As such, they present an opportunity to provide support to reduce the strain on acute services.

 

Toby 2015

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Email Toby Eccles

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How to develop a Social Impact Bond

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Introduction to Social Impact Bonds

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Social Impact Bond Global Snapshot

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A Technical Guide to commissioning Social Impact Bonds

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Peterborough Social Impact Bond

How can we help you?

Procurement and contracting

  • Develop SIB contract.
  • Government arrangements with SIB counterparty.
  • Marketing to investors and securing commitments for investment required to pay for services.
  • Service providers commissioned to deliver services to target group

Programme design

  • Detailed operating plan and due diligence on potential service providers for SIB-funded service.
  • Finalisation of outcomes measurement and payment framework.

Define outcome metrics and interventions

  • Research on desired outcomes for target population.
  • Assessment of measurement attribution options.
  • Needs assessment of target population.
  • Research on interventions to meet these needs.

Defining the social issue

  • Data analysis to understand population trends and cost pressures.
  • Stakeholder engagement to understand strategic objectives.

Assessing the service area

Social Impact Bonds provide investment to address social problems and look to fund preventative interventions. As such, they present an opportunity to provide support to reduce the strain on acute services.

It should be noted that social investment is one form of finance available to pay for programmes that generate positive social outcomes. In many cases, a SIB may not be relevant.

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info@socialfinance.org.uk

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Social Finance is authorised and regulated by the Financial Conduct Authority. FCA No: 497568