Curiosity, caution and social impact bonds

There has been considerable interest recently, at both state and federal government levels, in using social impact bonds (SIBs) as a way of funding social programs. This in turn has generated a lot of discussion in the not-for-profit sector as to how this will flow on to organisations and the delivery of effective social services should they be introduced. This paper provides an overview of the theory and parctice of SIBs. On first glance there would appear to be good reasons to support SIBs. But their effectiveness and relevance to the delivery of long-term social programs are not as clear as might be expected. Their promise to governments of a cheaper and more effective alternative to traditional means of social service delivery is also yet to be confirmed. The desirability and effectiveness of SIBs is viewed by many as questionable with the outcomes publicised by their proponents being highly suspect and backed by little evidence