In 2014, the Corporation for National and Community Service, through the Social Innovation Fund, was among the first federal agencies to play an active role in the field of Pay for Success, a new model of tying funding for an intervention to its true outcome in the community.
Last year, the SIF awarded eight grantees inaugural SIF PFS grant awards. These awards have already ushered more than 40 distinct Pay for Success projects into development, with more close behind. SIF grantees are innovating within the PFS space each and every day. For example, Green & Healthy Homes Initiative is training hospitals and service providers in five cities across the country to use PFS models break the link between unhealthy housing and unhealthy families. Institute for Child Success is working with cities, counties, and state governments to use PFS opportunities in the early childhood space, working with these jurisdictions to pay for outcomes – not inputs. And the Harvard Kennedy School Social Impact Bond Lab is pioneering Pay for Success projects in areas new to the field, like substance abuse and environmental health.
In all, due to the Social Innovation Fund’s investment in the field of Pay for Success, there are more projects in development now than ever. We are learning about how these projects are working, where they need tweaking, and where Pay for Success can be one of the most promising tools to leverage true cross-sector support for our nation’s toughest challenges.
That’s why I’m excited to announce that SIF has released the next phase of our program: the 2016 Pay for Success competition.
This competition will support nonprofits and state and local governments in Pay for Success transaction structuring – that is, it will provide funding to take PFS projects from development to implementation, and from conception to fruition. Applicants will bring matching support that will amplify the impact of our grants funds. Our vision is to continue to build the pipeline of high-quality Pay for Success projects, and this competition does just that. We need to continue to test Pay for Success, and our focus on transaction structuring will bring more projects to the implementation stage, allowing us to see the real impacts of this promising new model.
We expect this competition will aid in advancing the emerging models that align payment for social services with verified social outcomes.
At our core, we at the Social Innovation Fund are focused on finding solutions that work and making them work for more people. Our Pay for Success competition takes this mission to the next level—ensuring proven solutions have the dollars needed to scale, while cities and states with tightening budgets focus on solutions that work and only pay for results.
Please visit the PFS competition webpage to learn more about the grants program, consider applying or spread the word to others. Also, be sure to check out our schedule of application review webinars and resources for applicants.