Social impact bonds (also known as pay-for-success or social improvement bonds) are a new way of financing social services that focus on payment for outcomes rather than the volume of services delivered. Under the social impact bond model, private investors put up funding for a social services program, which the government pays back only if the agreed upon performance measures are met. As of 2018, there were at least 20 social impact bonds in a total of ten states. Funding for impact bonds totals $166 million, and the maximum payment for the projects total $238.6 million.
This report explores states with social impact bonds, investor funding, the maximum payments for success, outcome measures, payment for outcomes, and preliminary results from the social impact bonds.