Foundations for Social Impact Bonds

New research explores the role of foundations in the development of the new SIB market.

Why have some foundations chosen to get involved with the new and untested social impact bond (SIB) market? Why are others skeptical? What challenges do philanthropic organizations face in engaging with this sector, and what is their vision of the way forward?

 These are the questions that we at Social Finance set out to explore when we began the research that culminated in our recent white paper, “Foundations for Social Impact Bonds: How and Why Philanthropy Is Catalyzing the Development of a New Market.”

The way forward on social impact bonds

Co-authored by Gianni Ciufo, partner and Canadian leader for infrastructure advisory, project finance and social finance practice

The marketplace for social impact bonds (SIBs) is continuing to develop. Service providers are making progress in advancing their SIB business cases for their most promising interventions. Governments are taking steps in the procurement process for outcome contracts, exemplified by the Ontario Ministry of Economic Development, Trade and Employment’s recent call for SIB concepts and proposals. Now, as the results of our market consultations demonstrate, investors are also signalling their interest in the development of a SIB market in Canada.