social good

Guest Post: Social Impact Bonds Offer an Innovative Approach to Addressing Social Challenges

Release Date: 
09/26/2013

On April 9, 2013, Governor Pat Quinn announced a social impact bond initiative in the State of Illinois. Social impact bonds (SIBs) are an innovative approach to funding social services through the collaboration of nonprofits, funders, and government. At the core of SIBs are pay-for-success contracts that permit programs with measurable, successful outcomes to grow and deliver services to more people while at the same time saving the government money. SIBs are not bonds in the traditional sense; rather, they are contractual obligations by the government to pay based on successful results from a program. How do they work?

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