Sitting at the nexus of the Foundation’s work in scaling innovation andimpact investing, social impact bonds (SIBs), like ‘pay-for-success’ projects, represent one component of the rapidly growing field of innovative finance, aimed at helping state and local governments fund critical social programs through a combination of government initiation, private investment, and non-profit implementation. In the SIB model, the private sector works with governments and philanthropies to fund critical prevention focused social programs that help address the world’s most pressing problems. In this public-private partnership, investors are only repaid if and when improved social outcomes are achieved. SIBs have the potential to open new funding sources for prevention-oriented programs that deliver measurable social benefits, saving tax payer dollars in the process.
Social Impact Bonds : The Rockefeller Foundation