Document summary
A social impact bond uses private capital to fund a social sector organisation as it delivers a contract to address a social issue for the government. This report provides clarity on social impact bonds (SIBs) and aims to help people understand the global momentum behind this form of social investment by exploring SIBs' functioning, key design features, the role of the different parties involved (donor or govenment, impact-driven organisation, investor) and how SIBs can effectively help to deliver better outcomes both socially and financially.