Social Impact Bonds

For anyone who is interested in current debates regarding the development of  the Social Impact Bond (a means whereby private investors can invest in and receive a financial return from the government based on specific social outcomes being achieved) but who couldn’t be at the conference hosted today by Social Finance, you may like to know that documents presented at the conference are nows available on the Social Finance website here.

The only current live example of a SIB is that operating with the criminal justice system in Peterborough, whereby a headline outcome (of reduced reoffending rates) is the key measure which triggers a return for investors. Oddly, the short paper describing the mechanisms of the Peterborough pilot SIB is the one thing I couldn’t find on the Social Finance website, so I have uploaded it here.

If you don’t bother looking at the other docs, the Peterborough ‘prospectus’ is worth reading because on p.2 it has a good diagram illustrating the structure and operation of the SIB and personally I found this more helpful in understanding some of the key ideas and assumptions of SIBs than many of the other things I have tried to read.

Birmingham UK. Freelance research, evaluation and policy consultant specialising in social enterprise and the third sector. I maintain the BSSEC blog and website

Leave a Reply