Track 3.1: Fad or Future: How can impact be driven through outcomes-based instruments?

This session, moderated by Vera Michalchik, revolved around how philanthropy can better leverage outcome-based financing, capacity building, and innovative measurement frameworks to drive more effective social impact. The speakers each shared their own take on the topic then together discussed the importance of aligning incentives and fostering partnerships between governments, philanthropists, and social enterprises. 

Abha Thorat-Shah shared her experience collaborating with the Government of India's skill department  to improve outcomes for young people. Maxime Cheng reflected on the use of social impact incentives to support social enterprises in Bangladesh. Kelly Fitzsimmons reiterated the need for flexibility in funding approaches, but with a steadfast aim to achieve meaningful outcomes. Aditi Malhotra focused on the need for foundations to listen to non-profits and support them beyond just financial transactions, highlighting capacity building as a crucial aspect.

The discussion then kicked off, focusing on how to address the challenges of using social impact bonds, such as high transaction costs, difficulties in measuring outcomes, and the need for adaptability in changing circumstances. The speakers each found echoes of solutions from their earlier remarks. For Thorat-Shah, it was in her work with the Indian government in improving youth skill outcomes, for Cheng, the role of social impact incentives in supporting social enterprises, for Fitzsimmons the need for flexibility and a focus on results rather than rigid processes, and for Malhotra, the importance of humanising impact and listening to the needs of non-profits.

The panellists also discussed the future potential of social impact bonds. Thorat-Shah expressed optimism, noting their ability to mobilise capital, improve outcomes, and promote equity. Cheng envisioned a future where impact measurement is fully integrated into social finance. Fitzsimmons emphasised the use of data to drive decisions and accountability. Malhotra called for a more collaborative and inclusive approach to social finance that centres on the needs of beneficiaries.

In conclusion, the panellists emphasised the need for flexibility, collaboration, and a focus on outcomes in social finance to create sustainable and equitable impact.