Social Impact Incentives (SIINC)
Social Impact Incentives (SIINC) is a funding instrument that rewards high-impact enterprises with premium payments for achieving social impact. The additional revenues enable them to improve profitability and attract investment to scale. Thus SIINC can effectively leverage public or philanthropic funds to catalyze private investment in underserved markets with high potential for social impact.
Why 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. With SIINC-related premium payments, the enterprise enjoys full flexibility about the type and source of investment to bring in.
… 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.
… 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.
SIINC white paper
SIINC case library
If you would like to study the effectiveness of the SIINC mechanism, the first period results release by CDA provides some very good news.