A Technical Guide to Developing Social Impact Bonds

This guide, developed by Social Finance, aims to set out the steps that are required to assess the feasibility of a Social Impact Bond (SIB) idea and is written to assist those developing SIBs to reach a stage where it would be possible to establish a contract between a public sector commissioner and investors. A SIB is a contract with the public sector in which it commits to paying for improved social outcomes. On the basis of this contract, investment is raised from socially-motivated investors. If social outcomes improve, investors will receive payments from the government. The financial return is dependent on the degree to which outcomes improve.