Social Impact Bonds

A Social Impact Bond (SIB) is a financial instrument that raises private capital, and links financial returns to the achievement of a social outcome.  In a successful SIB model, these outcomes will create improvements in the system that create cost savings as well as social benefits, and so fund financial returns to the private capital.  
 
In the first SIB pilot that targeted a reduction in re-offending behaviour by ex prisoners, the savings from reduced future costs of incarceration funds the payments to original investors. Foundations were the investors and government was the cost centre and payer on the investment.  
 

Top Publications

Canada

• Social Impact Bonds in Canada: From Theory to Implementation by Arjun Langford (March 2011)

• Social Impact Bonds: A Practical Social Innovation by Adam Jagelewski, Social Innovation Generation for Horizon’s Magazine (Feb 2011): Explains SIB issues and opportunities in Canada
• Social Impact Bonds: Addressing Key Stakeholder Issues by Nora Sobolov and Adam Jagelewski, Social Innovation Generation (Dec 2010): Explain SIB issues in Canada
• Mobilizing Private Capital for Public Good by the Task Force on Social Finance (Dec 2010): Recommendations to catalyze social finance in Canada, one specifically recommends the use of social impact bonds.  
• Social Impact Bonds: Potential Applicability for Canada by Adam Jagelewski, Social Innovation Generation for HRSDC (March 2010): An introduction to SIBs in Canada.  

United Kingdom

• Lessons Learned from the planning and implementation of the Social Impact Bond at HMP Peterborough, Rand Europe (May 2011).  
• The Peterborough Social Impact Bond, Social Finance (April 2011): Details of the first SIB pilot
• A Technical Guide to Developing Social Impact Bonds by Emily Bolton (March 2011): Detailed questions for analysis of a SIB issue area
• Social Impact Investment:The Opportunity and Challenges of SIBs by Geoff Mulgan et. al (Nov 2010): Young Foundation’s detailed explanation of SIB model
• Social Impact Bonds - the pilot at Peterborough prison by Pat Strickland, Library House of Commons (Nov 2010): A briefing paper from UK parliament on SIBs and re-offending pilot
• Social Impact Bonds in Health by John Loder, Young Foundation (Oct 2010): Research on SIB in Health
• Creating Value through Social Impact Bonds by Michael Moynagh, Tomorrow Project (Sept 2010): Overview of SIBs and opportunities in the UK
• Social Impact Bonds: Unlocking investment in rehabilitation by Emily Bolton, Social Finance UK (Sept 2010): Research on re-offending and rehabilitation
• UK Social Investment Task Force 10 Year Review (April 2010): Introduce SIB opportunity as additional recommendation for social investment
• Towards a new social economy: Blended value creation through Social Impact Bonds by Emily Bolton, Social Finance UK (Feb 2010): Social Finance’s introduction to SIBs
• Financing Social Value: Implementing Social Impact Bonds by Geoff Mulgan et. al (Jan 2010): Young Foundation introduction to SIBs and their potential in the UK
• Social Impact Bonds by Social Finance UK (2009): Concept paper on the SIB model

United States

• Social Impact Bonds: A promising new financing model to accelerate social innovation and improve government performance by Jeffrey Liebman (Feb 2011).
• The Capital Curve for a Better World by Matthew Bishop (Jan 2010): An introduction to SIBs as a new model of impact investing

Australia

• Social Impact Bonds feasibility in New South Wales by Les Hems, CSI (Feb 2011)
• Social Impact Bonds: the potential for social enterprise by Les Hems, CSI (April 2011)
• A Pathway to Better Social Outcomes in New South Wales by Russell Taylor et. al, Archerfish Foundation (Jan 2011): Discussion paper on SIBs in Australia

Ireland

• How investors can banish social ills by putting money into staked-backed bonds the Irish Times (April 2011)

Top Blog Posts/Opinion

Canada

• Global Social Impact Bond Update: Canada, making the play or warming the bench? by Adam Jagelewski, Social Innovation Generation (Feb 2010)
• The Social Impact Bond Model and Why It Matters by Adam Jagelewski, Social Innovation Generation (Oct 2010)
• England Discounts Old Math by Al Etmanski (April 2010)

Global

• The Appeal of the Social Impact Bond by (with Antony Bugg-Levine), by Katie Gilbert, Institutional Investor (June 2011)
• Social Impact Bonds bring Social Innovation to the Bay Area by Jonathon Greenblatt (May 2011)
• Nonprofit Finance Fund Blog
• Social Impact Bonds: A revolution in government funding by Rachel Singer, Dowser (March 2011)
• What are Social Impact Bonds? by David Leonhardt, New York Times (Feb 2011)
• Sir Ronald has faith in the financial sector to innovate for social impact by Alan Lockey (Feb 2011)
• Councils consider social impact bond to reduce number of children in care by David Ainsworth (Jan 2011)

• Sir Ronald Cohen speaks on social finance at Ecotrust event by Ian Gill, Ecotrust (Jan 2011)
• Preventing Youth Unemployment by Neil Reeder, Young Foundation (Jan 2011)
• Financing what works by Jitinder Kohli, Centre for American Progress (Nov 2010)
• Treasury hints at more social impact bond trials by Vibeka Mair (April 2010)

Articles (General)

• Social Impact Bonds: A game changer in a time of tight budgets? by Tracey Palandjian (May 2011)
• Analysis: Can social investment bonds help tackle social problems? Third Sector (Feb 2011).

• For Federal Programs, a Taste of Market Disciplines by David Leonhardt, New York Times (Feb 2011).  
• The Name is Bond, Mark Easton BBC (Jan 2011): Issues driving SIB in UK and future opportunities
• Business Makes Push for Charity Innovation, Tara Perkins, Globe and Mail (Jan 2011): Overview of Task Force on Social Finance initiative and explanation of SIBs

• New South Wales Trials Social Impact Bonds, Pro bono Australia (Nov 2010): Announcement of SIB pilot in Australia
• Social Financial Engineering, Economist (May 2010): Explains UK re-offending pilot
• Let’s Stop Commericializing Social Services for the Needy, The Chronical of Philanthrophy, Mark Rosenman (June 2011).

Issue Analysis

Pay for Success (US)

• Push Back on Pay for Success Bonds, Tactical Philanthropy Blog

Social Impact Measurement

• Social impact bonds will fail without solving the evaluation problem first, David Henderson, Full Contract Philanthropy (April 2011)
• Can social impact really be measured?  Really? Allison Ogden-Newton, Social Enterprise London (April 2011).

Health Care

• Social Impact Bonds: A New Vehicle to Drive Health Care Reform, Spencer Healthcare Strategists (May 2011)

Additional Resources/Webpages

• Social Finance UK
• Young Foundation
• Social Finance Case Study for innovative funding mechanism (2010) Euclid Network
• Presentation for SIX global teleconference (Dec 2010) Social Innovation Exchange
• Social Impact Bond Video
• Social Impact Bond wiki
• Social Impact Bond webinar (UK)
• Social Impact Bond webinar (US)
• Social Impact Bond conference (video)
• Social Impact Bond conference (presentations)