This paper examines the role and impact of the Social Impact Bonds in the society. SIBs emerged in 2010 as an alternative way to finance and encourage investors to focus on burning problems within society. Through a contract between public service providers and private investors, SIBs use payment-by-results (PbR), which provides up-front cash for interventions to enhance specified targeted social outcomes. SIBs are contract with the public sector where investor’s payment is based on the on the successfulness of reaching social target. If targets are not reached, no payment is made. The hypothesis in this paper states that the relationship between social outcomes and SIBs is positive because SIBs can directly impact social outcomes that are beneficial to society. The primary tenet of SIB is that a beneficial impact on society can be imposed, attained, and sustained through this kind of financing. The goal of this study is to gather sufficient data to demonstrate the social impact of SIBs and the need for this alternative form of funding in light of contemporary issues. For the purposes to determine whether there is positive relationship between SIB and positive social outcomes, three countries and development od SIB in US, UK and Netherlands is examined and data is collected. Result or conclusion is that there is positive relationship between beneficial social outcomes and issuance of SIB. The content and structure of the paper is designed in a way that firstly starts with introduction of main features of paper. In the second chapter development, structure, relevance, motives as well as measurement of impact is examined. The third chapter deals with comparative analysis of SIB in UK, US and Netherlands. The fourth chapter gives an insight into regulatory framework and importance of it. The main subject of the fifth chapter is the perspectives of SIB and its future assessment. Lastly, conclusion is deducted summarizing the main results of the research.