Social impact bonds unite the private and public sectors through a unique solution-based partnership that allocates funding based on outcomes. As governments are refining their data collection strategies to improve policymaking, social impact bonds provide a way to track and manage performance. This chapter in Investing in Results describes how transferring risk, focusing on outcomes vs. outputs, active performance management, and many other factors play a role in building a market towards financing outcomes.
There is no one-size-fits-all social impact bond model; developing the appropriate structure for specific goals and contexts is critical to producing positive and enduring long-term outcomes.
Outcomes Rate Cards: A Path to Paying for Success at Scale
This chapter of What Matters: Investing in Results to Build Strong, Vibrant Communities was co-authored by Social Finance Managing Director Lara Metcalf and Bridges Fund Management's Andrew Levitt.