Pay for Success (PFS) is a set of innovative, outcomes-based financing strategies that directly and measurably improve the lives of people in need by driving resources toward results. These strategies, which include the Social Impact Bond (SIB) and the Career Impact Bond (CIB), center on five core principles:

Clearly-Defined Outcomes

Data-Driven Decision Making

Cross-Sector Partnership

Strong Governance and Accountability

Catalytic Capital For Impact

The PFS movement began more than a decade ago, when our sister organization, Social Finance U.K., developed the world’s first SIB. Since then, PFS practitioners across the globe have launched more than 180 SIBs in 32 countries. These projects are mobilizing over half a billion dollars to address entrenched social issues that are difficult, if not impossible, to address via traditional social program funding approaches.

In recent years, the PFS movement has evolved beyond the SIB to incorporate new outcomes-based strategies, including the Career Impact Bond (CIB), the Environmental Impact Bond (EIB), the Development Impact Bond (DIB), and the Outcomes Rate Card (ORC).

What is a Social Impact Bond?

The Social Impact Bond (SIB) is not a ‘bond’ in a traditional sense — it’s a unique public-private partnership that funds effective social programs through outcomes-based contracting. The SIB enables governments to achieve results for communities by bringing impact investors and quality service providers together to tackle specific social challenges. Impact investors provide upfront capital to scale up the work of service providers. Government repays investors, according to an outcomes-based contract, once the project achieves its pre-defined social outcomes.

Whether focused on helping mothers in poverty achieve healthy births, supporting immigrants and refugees through job training, or retrofitting homes, the SIB transfers risk from the public to the private sector and aligns project partners on the achievement of meaningful impact. Learn More >>

What is a Career Impact Bond?

The Career Impact Bond (CIB) is a student-centered income-share agreement (ISA) that expands access to career training to people who face barriers to education and employment. Learn More >>

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