Outcome-focused payments, Social impact bond

Portugal’s Social Innovation Initiative

Created to transform social services under austerity, Portugal’s €150m Social Innovation Initiative uses results-based financing through Social Impact Bonds and Partnerships for Impact. It shifts funding from activities to outcomes, supporting areas such as youth employability and dementia caregiver networks while building a social investment market.

Outcome-focused payments, Social impact bond

Tackling unemployment and social exclusion among immigrants in Finland (Koto-SIB)

Created to improve immigrant employment and reduce integration costs, Finland’s Koto-SIB Social Impact Bond links job placements in sectors such as logistics, IT, and cleaning with investor returns tied to fiscal savings and tax revenues. The pilot aimed to place 2,500 immigrants in work, with success measured through reduced welfare spending and increased tax contributions.

Outcome-focused payments, Social impact/outcome fund

France’s hémisphère social impact bond

Developed to provide emergency accommodation and support for homeless people and asylum seekers in France, the Hémisphère Social Impact Fund combines Social Impact Bond financing with social investment. It transforms hotels into housing and delivers social services, with investor returns partly linked to outcomes such as access to education, social benefits, and permanent housing.

Outcome-focused payments, Social impact bond

The UK’s mental health and employment partnership

The Mental Health and Employment Partnership (MHEP) in the United Kingdom helps people with mental health conditions, learning disabilities, or autism access paid employment. Using a Social Impact Bond, the programme funds evidence-based support services that guide participants into work, linking investor returns to measurable outcomes like job starts, job sustainment, and programme engagement.

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