Social Impact Bonds (SIBs) are often portrayed as providing both social benefits and financial returns. However, as SIBs are a relatively recent invention, they have yet to prove their ability to bring about effective, innovative, and long lasting solutions for social change. Despite this, governments and philanthropic organizations around the world continue to be attracted to the promises made by proponents of SIBs. In the context of the increased discussion of and interest in SIBs, this policy paper explains the development of the growth and motivations behind various stakeholder involvement in SIBs and examines current SIB activities across sectors, particularly education. The paper also explores the appeal of SIBs and concludes with policy recommendations for governments to be able to get the most from a SIB initiative.