Social Impact Incentives (SIINC)
Social Impact Incentives (SIINC) incorporate rewards for achieving social impact into the financing of high-impact enterprises. Through SIINC, enterprises can earn additional revenues to attract investment or benefit from preferred financing terms in order to scale. The incorporation of financial benefits for social performance leads to a strong alignment of positive impact and profitability – a precondition to sustainably deliver impact at scale.
SIINC is relevant for impact enterprises and inclusive businesses:
The SIINC model makes it possible to scale without compromising on generating strong positive impact. SIINC can act as an additional revenue stream that directly improves the P&L (through SIINC-related premium payments) or as a financing option with impact-based preferential terms (other forms of SIINC). With SIINC-related premium payments the enterprise enjoys full flexibility about the type and source of investment to bring in.
SIINC is relevant for investors:
SIINC improves the risk/return profile of high-impact enterprises by rewarding them for their impact. The enterprise will be able to continue or even accelerate its efforts to generate deep impact while offering sufficient returns.
SIINC is relevant for public funders and donors:
SIINC offers great value since an outcome-funder only provides rewards for impact that is actually generated. The outcome funder works with the enterprise to decide on the desired outcomes and on the terms for incentivizing these. If SIINC is used properly, the enterprise will continue to generate positive impact long after the SIINC agreement is finished.
SIINC was co-created by the Swiss Agency for Development and Cooperation (SDC) and Roots of Impact.