What is Social Impact Bond? How to Implement it? How to Evaluate and Monitor it?

ABSTRACT: Governments often try to solve complex environmental and chronic social challenges like homelessness, juvenile justice, high recidivism rates, inequality in education, unemployment and the like, but desired results are not easy to attained. For the most part local and state government programs fund remediation rather than prevention. The main idea behind pay for success or social impact bond (SIB) program is to attract private sectors to fund social service interventions and provide this social service programs’ upfront funds to achieve improved results and outcomes on a specified target. SIB is a social finance innovation and contractual arrangement that governments use it to implement a public /private partnership (PPP). It is a new and innovative way of bringing the public and private sectors financed together to achieve certain development goals. If a program is successful and profitable, taxpayers would pay back the investor. But if the program doesn't meet certain goals, taxpayers are not in risk, they keep their money and investors take the loss. Keywords: Pay for success, social service, social impact bonds, PPP or public (government) and private sector partnership, social finance, service provider. …………………………………………………………………………………………………………………………