Social Impact Bonds (SIBs)

Social Impact Bonds (SIBs) are innovative financial arrangements where private investors fund social programs, such as education or health initiatives. If the program achieves specific agreed-upon outcomes, the government or other funders repay the investors with a return, often funded by the cost savings or benefits generated. If outcomes are not met, investors typically lose their money, aligning financial risk with success. SIBs aim to incentivize effective social interventions through private capital, encouraging innovative solutions while ensuring accountability and measurable results.