Social Impact Bonds (SIBs) are an innovative financial tool to help state and local governments facing tough budget decisions fund critical social programs. In 2013, states face $85 Billion in federal grant cuts. SIBs create new funding streams and help put impact investing capital to work. Philanthropies and foundations help support critical social programs across various initiatives, with $37.3 Billion in estimated giving in 2011. Bringing private resources to impact investing expands the pie, with up to $1 trillion in potential commercial capital over the next ten years. Social impact bonds represent one vehicle for applying impact investing dollars.