This article introduces a new version of the social impact bond model, described earlier on SocialFinance.ca, that marries the SIB concept to new hybrid legal tools that are under consideration in the US and UK. Part I, published here, explained the potential benefits of this model. Part II, below, reviews current and future developments that can help turbocharge social impact bonds by harnessing new market structures.
Public Policy
The Social Impact Bond (SIB) works in the same way as the International Finance Facility for Immunisation, originally proposed by the UK government in 2003. This structure captured future government cash flows from future aid budgets to change the incentive structure for scale. In the same way, the SIB captures the value of a future cash flow resulting from a social sector intervention and then uses this to change the incentive structure for collaboration and scale by the government, the civil society sector, NGOs and the private sector.
At its simplest, the SIB monetises the value of a social sector intervention, in essence flipping the traditional model on its head since a cash flow is now tied to the delivery of a social outcome.

Join 1200 people from over 70 countries in Montreal , October 17th -20th who are activating the social and solidarity economy across Canada and globally. Fiess2011, the International Forum on the Social and Solidarity Economy, brings together those who collaborate with different levels of government to effect public policy for the benefit of the social economy.
International conferences such as fiess2011 are our opportunity to examine emerging and established models that feed our curiosity and ignite ideas for adaptation in Canada.
Join 1200 people from over 70 countries in Montreal, October 17th -20th who are activating the social and solidarity economy across Canada and globally. fiess2011, is the International Forum on the Social and Solidarity Economy, that brings together those who collaborate with different levels of government to effect public policy for the benefit of the social economy.
For Canadians, this is a great opportunity to take advantage of the world at our door. You will want to be at fiess2011 if you are part of the non-profit, cooperative, social business or social entrepreneurship sectors, or if you are working towards changing the landscape of public policy towards social well-being and economic growth. fies2011 takes networking to a new level with dedicated spaces and delegate meet-ups.
This is Canada's premier event to connect with the people who are changing how we collectively address complex social and envrionmental issues of our time. Check out the program, workshops and field trips planned throughout the week.
I am looking forward to hearing from this impressive list of international and national guest presenters:
Mission Based Investing and Social Capital have been receiving a lot of press and interest lately. According to data collected by the Canadian Social Investment Organization (SIO), there is a total of $4.45 billion in impact investing assets available in Canada. The Canadian Task Force on Social Finance recommended that foundations invest 10% of their assets in impact and mission-related activities. Before we can move from broad statements and recommendations to actual practice, however, we need to firstly ensure that we are talking the same language, understand the sector’s constraints, define desired outcomes, and agree on the players and their roles. In order to do this, 5 key questions need to be answered.



























