The role of social impact bonds in funding recidivismreducing programs

Abstract

Social impact bond (SIB) is a new financial tool, which simultaneously helps to improve public service efficiency, to achieve measurable social benefits and to provide financial return to the investors. In this article, we briefly review the theoretical framework, structure and main actors of the SIB, as well as the advantages and disadvantages of this innovative financial model. We present four case studies to show the practical outcomes of evidence-based recidivism reduction programs operating in SIB structure. This article may help the development and implementation of new types of services and programs in relation to crime prevention in Hungary.