Social finance is the generic term for new emerging financing activities and funding options for voluntary and community organisations. Social finance incorporate social investment offering a variety of services and products. Social investment covers the different types of financial activities used to create social impact.
The social finance market is a group of intermediary organisations supplying financial capital to civil society organisations such as charities, social enterprises, mutuals and cooperatives. This financing service is often provided alongside management or consultancy support.
From the Centre for Social Impact Bonds
Social impact bonds (SIBs) are a new tool that unlock private finance and public investment so that organisations which are best placed to tackle social problems can do so on a payment by results basis. SIBs enable commissioners to capture the expertise of the Voluntary, Community and Social Enterprise (VCSE) sector in tackling complex problems and only pay for success, they provide the VCSE sector with upfront capital to deliver payment by results contracts, and they enable social investors to use their money to achieve both a social impact and a financial return.