Social Impact Bonds 101

As of February 2017, 15 Pay for Success (PFS) contracts using social impact bonds (SIBs) have been launched in the U.S. In combination, these projects are scheduled to deliver approximately $130 million in services and serve more than 20,000 individuals. These projects tackle issues in homelessness, criminal recidivism, early childhood education, maternal and infant health, child welfare system reform, and substance abuse treatment. This policy brief discusses the reasons that governments around the country are testing the Pay for Success approach. It also explains the PFS model, describes PFS projects in the US to date, and presents some of the lessons that have been learned from the initial U.S. PFS projects