Social Finance, Inc.

founded in january 2011, social finance, inc. is a nonprofit organization working to connect the social sector with the capital markets by structuring and managing innovative investment instruments that generate both social benefit and financial returns. the social impact bond (sib) is at the core of social finance’s current efforts. the sib is a financial instrument that aligns the interests of nonprofit service providers, private investors, and governments in an effort to improve the lives of individuals and communities in need. sibs raise private capital to fund nonprofit prevention programs aimed at achieving improved social outcomes that generate government savings. if an independent evaluator determines that the pre-defined outcomes have been met, the government repays investors their principal and a rate of return that account for a share of the savings. if the pre-defined outcomes have not been met, the government owes nothing.