Paying for outcomes
Solving complex societal issues through Social Impact Bonds
Canadians look to government to provide leadership in solving the most complex issues in our society. These social issues include reducing crime, raising our level of health and well-being and educating our children and youth.
Vast sums of taxpayer's dollars are invested in these areas every year. Yet, measurable outcomes can be elusive. The government bears most of the financial risk, and there is limited incentive for innovation. Given their complexity, some social problems require collaboration from a number of groups and perspectives – and the opportunities for such collaboration are often limited in the established structures of our public institutions.
Address related challenges
A worldwide revolution in how we deal with social issues is occurring. The field of social finance and impact investing is changing the landscape. Similar to the pay-for-success bond in the United States, the Social Impact Bond is one key instrument that offers an innovative way to address many related challenges. Focused on outcomes, the Social Impact Bond enables the government to pay only if an initiative is successful, incentivize innovation, and allows service delivery providers to be commissioned as a group.
The Social Impact Bond can fundamentally shift how some social service programs are structured, impacting both government departments and social sector organizations. How prepared is your organization for the arrival of the Social Impact Bond in Canada? Download our report to learn more.
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