What is Results-Based Financing?
Results-Based Financing (RBF) is a tool to give money to social programs that work. In a Results-Based Financing model, a “payer” (a foundation, international donor, or government) conditions its payment to a service provider (an NGO or private company) on desired outcomes (see chart below). Thus, Results-Based Financing allows social programs to focus on achieving real impact rather than following a set of rules. At Instiglio, we currently work with two types of Results-Based Financing models, Impact Bonds and Performance-Based Contracts.