A social impact bond (SIB) is a unique form of impact investing that leverages impact innovation results with funding. It is an agreement between multiple stakeholders where investors fund a social change solution and are repaid by the government only if the solution yields results within a frame of time.Here is a great 3 minute video by McKinsey and Company explaining what a social impact bond is and how it works:


You can also tune into Stanford Social Innovation Review’s Webinar with Tracy Palandjian and Sonal Shah on social impact bonds today (11 AM PST) or view later here.Here are a few facts about the social impact bond:1. It’s not a bond. It’s an agreement between multiple stakeholders–such as nonprofits, government, and investors and involves an intermediary.
2. It was first implemented in England. The first social impact bond to be introduced was launched to target recidivism rate among young men near London. Social Finance UK was the intermediary to deliver better outcomes for lower cost. The first SIB yielded great results.
3. It has other names. It is also known as Pay for Success Bond or a Social Benefit Bond.
4. MA and NY have implemented in the US. The SIB’s addressed issues of recidivism and homelessnes.
5. The goal is to target institutional capital. Beyond using philanthropic capital, Social Finance Founder Tracy Paladjin says that the goal is to attract traditiona/institutional capital to fund SIB’s.

Also, you can find a list of 15+ articles and multimedia posts here.

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