Social Impact Bonds

A Comprehensive Review
PRS Briefs
PRS Policy Brief 1617-08
Tuesday, April 25, 2017

Social Impact Bonds (SIBs) are a new and innovative method of funding public programs. In these programs, an investor provides funding for a public program and is repaid by an outcome funder, usually a government entity, upon the successful completion of the program. This funding structure reduces the risk of government funding being spent on ineffective programs and prioritizes evidence-based approaches to public policy. This report complies and analyzes the structures, programs, and target populations of past SIBs in order to inform future discussions in the Vermont Legislature about their potential applications.