Wind River Development Fund

Contact Information

PO Box 661
Fort Washakie, WY 82514 - 0661
(307) 828-1618
Social Innovation Fund Pay for Success FY 2014

Executive Summary

1. Executive Summary

Youth are sustained in sobriety. More capital is deployed to foster development of economies on and near Indian Reservations. Schoolchildren begin kindergarten ready to learn alongside their peers. Ex-offenders live their lives without returning to prison.

Each proceeding example is a societal goal that public and philanthropic capital cannot realize without spending more money unless alternatives are found. Pay-for-Success (PFS) deals promise to drive existing expenditure to higher levels of productivity. Wind River Development Fund has been building its capacity to deploy these new tools for the past few years. To thise end, WRDF seeks $350,000 per year for three years to structure PFS deals from the Social Innovation Fund.

WRDF expects to close three PFS deals in either Indian Country or the Intermountain West in each of the prgram years. In addition to its primary goal to close PFS deals, WRDF has additional goals.

First, build the capacity of Philanthropy to invest at the front end or the completion of a deal's contract term to cover outcomes payments. Second, share results of PFS transactions with municipal, county and state policymakers to encourage participation in future PFS deals as the field matures. Third, develop and share outcome tracking tools that make the process of setting, inputting, measuring, monitoring and evaluating less onerous. Fourth, build a network of investors who understand PFS risks and opportunities and are prepared to invest in future transactions. Finally, inform policymakers and agency leaders of the potential to invest in as an "outcome payment authority" as an additional tool to deploy public resources for improved social outcomes and success

WRDF has developed a significant track-record of achievement over the past decade in aggregating and deploying capital in rural and frontier communities. One of the more successful Native Community Development Financial Institutions in the country, WRDF has demonstrated both the capacity and judgement necessary to identify and work with partners, structure transactions and execute agreements that work in rural communities.

WRDF's organizational capability relative to this PFS opportunity is novel for four reasons. First, WRDF will build a diversified portfolio with an investment in each of the three target areas of Youth Development, Economic Opportunity and Healthy Futures sourcing them across communities and states. Second, in scaling this portfolio, Wind River Development Fund will grow its capacity by scope not size. Third, investor capital will be sourced from network partners, primarily community foundations, who already have idle, 100% financial loss capital (i.e. grant funds) to put at risk in PFS deals. Fourth, Wind River Development Fund's data architecture is built native to the cloud in a modular way designed from the beginning to foster knowledge-sharing, not only through access to information, but also the tools and methods that produce it.

The NOFA asks the likelihood of continuing PFS transactions beyond the grant period. WRDF's principal leaders in this initiative aspire to make PFS transactions, and impact investing more broadly, the professional focus of the remainder of their professional careers. This can aptly be described as a vocation.

If three primary skills are required to successfully structure and manage PFS deals, finance, development, data and outcome management, then each member has an aptitude for each. All three have a strong fiduciary sense. Combined, this trio has seven decades of public and nonprofit service in community development.

WRDF's request is for $350,000 in support for three years from the Social Innovation Fund so that WRDF can structure PFS deals. With this investment from SIF, WRDF will raise nearly $400,000 in additional support. WRDF commits $84,000 of in-kind support through allocating staff and organizational capacity to this initiative.

Each year, WRDF will source nearly $400,000 for these purposes from these sources as a match:

- Sub-grantee Investment from Community Foundations and CDFI Investors

- SIF PFS Program Support / Outcome Payment, $550,000 from private foundations

The 10% match already raised that is required is cash-on-hand of unrestricted net assets. This amount is $35,000.

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