The LOUD SIB Model: Four Factors That Determine Whether a Social Impact Bond is Launched

Introduction

This report explores the LOUD model. The LOUD model explains what SIBs are, and how, where and why this mechanism is used instead of traditional grant funding.

Findings

This research found that SIB development depends on strong cross-organisational advocates with a shared understanding and collaborative leadership. It also requires substantial data and evidence, with gaps often addressed through pilot projects to build future cases.

The research found that:

• SIBs work best when there is a collective leadership approach

• SIBs require a substantial set up period to allow time for the gathering of knowledge, evidence and data

• commissioners, providers and investors need to work together in new ways which may be more complex than traditional service delivery models