Social Impact Incentives (SIINC) is a funding instrument that rewards impact enterprises with time-limited premium payments for achieving social impact. By linking public or philanthropic funding to pre-defined and proven social outcomes, high-impact enterprises can earn extra revenue and improve their profitability, which in turn helps to attract additional investment to scale.

Given that raising repayable investment is a pre-condition for receiving SIINC payments, it can effectively be defined as a blended finance mechanism. In other words, catalytic funds are leveraged to mobilise private investment for impact enterprises.


Enabling impact enterprises to attract investment and scale both in terms of income and impact. Improving the risk/return profile for investors

Can replace

Grants, catalytic capital, and other blended finance instruments

Risk/Return Profile


Enterprise Lifecyle

Early and later growth-stage


2-4 years

Defining Criteria

Financial reward for impact:
Ongoing payments to impact enterprises are linked to direct and measurable impact (which aligns profitability with social impact).
Outcome verification:
Independent verification of the results (outcomes).
Cap for financial rewards:
Premiums are typically provided up to a capped amount.
Capital mobilisation:
Mobilisation of private investment (closing condition for SIINC) creates leverage for the catalytic funding provided.
Alignment of interests:
Impact enterprises and investors both carry the risk of underperformance for achieving outcomes, and both positively benefit from successful outcome achievements.

Interesting Variants and Options

  • Reimbursable SIINC
    • Reimbursable SIINC are similar to traditional SIINC, except that the payments received from the outcome payer have to be reimbursed if pre-defined triggers are met.
    • While conditions can be freely negotiated, the most obvious scenario is to tie reimbursement to the commercial success of the enterprise, e.g. using pre-defined profitability triggers.


  • Convertible SIINC
    • Along the lines of Reimbursable SIINC, Convertible SIINC can also tie a partial or full conversion (e.g. into debt) of SIINC payments to the commercial success of the impact enterprise.


Both of the above mentioned SIINC variants are best suited for high growth ventures that are expected to get commercially strong and both allow outcome payers to “recycle” their resources to generate further impact.


  • Direct integration of SIINC in investment (e.g. Impact-linked Loan)
    • Social impact incentives can be directly integrated into loans, tying the interest rates (potentially even parts of the repayment obligations) to borrowers’ impact – the higher the social outcomes achieved, the better the terms.
    • Possible (re)payments range from discounted interest to partial or even complete forgiveness of interest and principal payments.


  • Emergency SIINC
    • Conceptualised in response to the Covid-19 crisis, Emergency SIINC build on the idea that if enterprises do not receive additional emergency funding tied to impact, they risk unintended shifts in their business models.
    • Payments can for instance, be tied to the results of an impact enterprise’s defensive strategies (e.g. efforts to maintain and protect workforce), or be linked to providing supportive products and services for their most vulnerable customers.

Source: Innovative Financing Toolkit, BRIDDHI, 2020

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