Social Impact Incentives

The Social Impact Incentives (SIINC) model is a blended finance instrument introduced for the first time in 2016.

[3] The SIINC agreement is a bilateral contract between an outcome funder (e.g. a development agency or a philanthropic organization[4]) and an enterprise; an independent verifier assesses the impact performance and clears payments for disbursement;[5] the investment between the enterprise and its investor is arranged via a separate contract.

[3] SIINC is a blended finance model that seeks to align the interests of development funders, enterprises, and investors around social impact.

[1] A report from the Boston Consulting Group highlighted that SIINC is a form of Impact-Linked Finance as it fulfills the criteria of focusing on outcomes as opposed to outputs, and incentives are paid only to the value creator for additional impact.

The SIINC model can be utilized to catalyze investment into an enterprise in an impact-focused manner,[3] or it can lead to deeper levels of impact being generated.