Grantees will provide transaction structuring support to state and local governments and nonprofits in order to help build the Pay for Success pipline.
Pay for Success (PFS) has emerged as a new approach for government to partner with the private sector to fund proven community-based solutions. PFS is an innovative contracting and financing model that leverages philanthropic and private dollars to fund services up front, with the government, or other entity, paying after they generate results. This strategy has gained strong bi-partisan support in Congress, as a strategy for increasing return on taxpayer dollars while improving the quality of services provided in our communities.
At its core, the Social Innovation Fund (SIF) is about finding what works and making it work for more people. PFS is another critical tool with the same mission – supporting innovation, ensuring solutions have the dollars needed to scale, and paying for results. As part of both the 2014 and 2015 Congressional appropriations, the SIF was given authority to use up to 20% of grant funds to implement a competition to test PFS approaches.
The SIF Pay for Success program aims to:
- Strengthen and diversify the pipeline of governments and nonprofit organizations that are prepared to engage in PFS projects
- Assess the potential of PFS to address a variety of social issues relating to diverse populations in diverse geographic contexts
- Attract capital to high-performing institutions seeking to strengthen, grow, and sustain effective solutions for challenges facing low-income communities
The SIF will share lessons learned every step of the way, on how this approach works, and how it doesn’t, in order to enhance knowledge in the field and begin to test and address questions around the applicability and efficacy of Pay for Success. See how we're sharing this knowledge on the Pay for Success Resources
SIF Pay for Success grantees are funding activities that advance PFS projects and transactions in the near term, in order to enhance the reach and impact of innovative community-based solutions in low-income communities. Eight organizations were selected in 2014 to receive funding for up to three years through an open and transparent competition.
Learn more about the grantees and their selected subgrantees and subrecipients receiving funds and services for PFS projects across the country:
To view a complete list of past and current SIF grantees, visit the Funded Organizations page.