Nonprofit Finance Fund

Grantee Information

Federal Award: $3,600,000 for 2 years
Focus Area: Multiple
Geographic Focus: Nationwide
Collaborating Partners: Orrick, Herrington & Sutcliffe LLP (pro bono legal support) 
Funding Partners: Laura and John Arnold Foundation

Nonprofit Finance Fund (NFF) will intermediate SIF funds for Pay for Success (PFS) transaction structuring and to expand PFS knowledge sharing. The program leverages NFF's recognized roles as a leading PFS market facilitator, a knowledge integrator and an independent trusted advisor to all types of PFS stakeholders (service providers, government, investors and foundations, intermediaries, and evaluators) across a broad range of geographies and social issues.

NFF's SIF program has two objectives, both designed to promote NFF’s overarching goal of grow, strengthen and diversify the PFS market. These are:

  1. To fund the exploration of innovative and diverse PFS funding strategies that will advance a cohort of promising, high-quality PFS approaches that align with the Social Innovation Fund goals.
  2. To share knowledge, resources, and lessons learned from new and existing PFS projects through NFF’s learning platforms, including the existing Pay for Success Learning Hub website.

Over the course of two years, NFF will award $2.88 million in subgrants to support transaction structuring activities for PFS projects that have already completed project feasibility assessments. Subgrants will be made to support the work of existing partnerships between governments, service providers and transaction coordinators. Subgrantees will be selected through an open, transparent, and competitive application process, and applications will be evaluated using well-defined criteria designed to assess the likelihood that a project will result in a launched PFS project within a period of one to two years. NFF anticipates making at least 12 subgrants over the course of two years. 



Entities Receiving Social Innovation Fund Awards from the Nonprofit Finance Fund

The Community Foundation of Utah, in partnership with Third Sector Capital Partners, Inc.
Enterprise Community Partners, Inc., in partnership with Corporation for Supportive Housing (CSH)
Jewish Vocational Services, in partnership with Social Finance US
Greenville Health System
Hillside Children's Center
Nurse Family Partnership National Service Office
Santa Clara County, CA
Third Sector Capital Partners, Inc., in partnership with the Conscience Community Network, LLC
Tuscaloosa Research & Education Advancement Corporation, in partnership with Social Finance US


The Community Foundation of Utah, in partnership with Third Sector Capital Partners, Inc.

Salt Lake County, UT

Nonprofit Finance Fund is providing a subgrant of $250,000 to The Community Foundation of Utah for transaction structuring for the Salt Lake County Pay for Success (PFS) Initiative, which plans to simultaneously construct and launch three PFS projects in the areas of maternal and child health, homelessness, and criminal justice. Through an extensive scan of Salt Lake County’s budget, stakeholder outreach, data requests and Requests for Information (RFIs), measurable outcome targets have been identified in each area including, but not limited, to reductions in pre-term births, reduced child maltreatment, reduced jail bed days, days in stable housing, gains in employment and income, and nights in emergency shelter. Outcomes will be refined once service providers have been selected in the summer of 2015. Transaction structuring work will be undertaken in partnership with Third Sector Capital Partners, Inc., the office of Salt Lake County Mayor Ben McAdams, and the Policy Innovation Lab at the University of Utah.

This program is innovative because it tests a new approach to developing a PFS project portfolio, while also building local capacity to develop PFS projects and funding project development costs comprehensively.  This approach aims to realize greater efficiencies in constructing PFS projects, allowing for economies of scale while also stimulating learning across multiple government agencies and within the community.


Enterprise Community Partners, Inc., in partnership with Corporation for Supportive Housing (CSH)

Denver, CO

Nonprofit Finance Fund will provide a subgrant of approximately $250,000 to support the final stages of structuring a Pay for Success (PFS) transaction in Denver, Colorado. Transaction structuring activities will be conducted by staff of Enterprise Community Partners, Inc. and CSH, with consulting services provided by Social Impact Solutions and the Urban Institute. The proposed PFS project, the Housing to Health Initiative, will provide supportive housing to 300 chronically homeless individuals with significant primary and behavioral health challenges, making them “super utilizers” of emergency health and criminal justice services (arrests, bookings, courts, jail bed days, detox, and emergency room visits). Supportive housing will be used to promote housing stability, improve quality of life, reduce contacts with the criminal justice system and more effectively use preventative health care services to lower the need for unnecessary emergency room visits.

The Housing to Health Initiative is part of a larger effort to deliver better outcomes for high-need populations by coordinating care, aligning public spending on housing and Medicaid with supportive housing service delivery, and sharing data across agencies. As such, it demonstrates a high level of partnership amongst government entities, and between the public and private sectors, and responds to shifts in the health care space that recognize the link between housing and health outcomes and the importance of non-medical interventions in promoting health. It also provides a new model for funding comprehensive support services that have traditionally been difficult to fully reimburse through public funding alone.


Greenville Health System

Greenville, SC

Nonprofit Finance Fund is providing a $174,000 subgrant to Greenville Health System to explore and assess the potential of Pay for Success (PFS) approaches to improve population health in the region.  The proposed project would use a PFS approach to support delivery of a community paramedicine program that uses emergency medical technicians and care coordinators to provide primary and preventative care and connection to community-based health resources, as an alternative to emergency room transport and use. The project targets low-income uninsured and underinsured populations who lack access to primary care and often use emergency services instead.  Community paramedicine services will be provided in Greenville, South Carolina and surrounding rural counties.  The outcomes to be measured will include reductions emergency room visits, EMS transports, and in-patient visits; and increased patient connection to medical homes and local health resources. 
 
This project responds to the major trends and mandates in the health care system including a shift away from fee-for-service reimbursement models toward outcome- and value-based financing, and more broadly, the Affordable Care Act’s emphasis on improving care while reducing costs.
 

Hillside Children's Center

Syracuse, NY
 
Nonprofit Finance Fund is providing a subgrant of $250,000 to Hillside Children’s Services to work in partnership with Third Sector Capital Partners to support the ramp-up period of the Intensive Community Asset Program (ICAP).  The New York State Pay for Success (PFS) Initiative selected ICAP in April 2014 for the development of a PFS contract to provide comprehensive social services and support to youth involved in the juvenile justice system. The target population is youth who have already been adjudicated as juvenile delinquents but not yet sentenced. If assigned to the ICAP program as a condition of parole, these youth would receive six months of intensive, personalized services in their home communities from a social worker and care coordinator working in partnership to connect participants to housing, educational and health resources, and acting as liaisons between the youth and their family members, and probation officers and judges. 
 
ICAP is innovative as a new program, although one that draws heavily on Reinvesting in Youth, a similar program that Hillside has delivered, and the Juvenile Detention Alternatives Initiative (JDAI), both of which serve youth at an earlier stage of involvement in the juvenile justice system and have shown positive results in reducing re-arrest and recidivism. The goal of ICAP is to reduce the number of days that youth spend in out-of-home care, including secure placement, detention, jail and prison, and thereby avoid the negative impacts of institutional care on future educational, employment and health outcomes.
 


Jewish Vocational Services, in partnership with Social Finance US

Massachusetts

Nonprofit Finance Fund is providing a subgrant of approximately $225,000 to Jewish Vocational Services, in partnership with Social Finance US, for transaction structuring for the Massachusetts Adult Basic Education Pay for Success (PFS) Initiative.  This initiative will serve nearly 2,500 adult learners from select communities in Greater Boston characterized by large concentrations of recent immigrants and long waitlists for English for Speakers of Other Languages (ESOL) programs. Serving also as the service provider for the initiative, Jewish Vocational Services will offer four distinct training tracks that combine vocational training, job search assistance and contextualized ESOL instruction, with the goal of fostering successful transitions of adult learners to employment, higher wage jobs, and higher education. Measureable outcomes include job placement, retention, increased earnings, and college enrollment.

This program is innovative as a workforce development project and for incorporating increased tax revenues as part of the economic value generated by the project.
 

Nurse Family Partnership National Service Office
Michigan
 
Nonprofit Finance Fund is providing a subgrant of $196,500 to the Nurse Family Partnership (NFP) National Service Office for the Michigan Nurse Family Partnership Pay for Success (PFS) Project aiming to improve health outcomes for first-time mothers living in poverty, and their children.  The program provides pre-and post-natal services aimed at improving health outcomes for the mother and child. The proposed PFS project would scale NFP’s intervention to meet unmet demand through its existing partner agencies in Michigan. NFP’s intervention has been subject to three randomized control trials which have established the program’s impact on 19 different measures of maternal and child health and wellbeing. While the final success outcomes for this PFS project have not been defined, proposed success outcomes are reduction in preterm births, increased inter-conception health as measured by improved birth spacing, and reduced hospitalizations for child injuries. 
 
NFP will work with transaction coordinator Social Finance. NFP staffers will be engaged with the state, the evaluator, the local NFP implementing agencies, and Social Finance to finalize the program scope and evaluation design, the financial model for the project, and plan for and launch a pilot period which would train new project staff and test data collection and referral processes.
 

Santa Clara County, CA
 
Nonprofit Finance Fund is providing a subgrant of $250,000 to support the final stages of transaction structuring work and operational ramp-up period for service delivery for a Pay for Success (PFS) project in Santa Clara County, California. This project will provide comprehensive, community-based social services and behavioral health treatment to approximately 250 individuals with acute mental health needs who are frequent users of the county’s mental health services, including outpatient and inpatient psychiatric services and hospitals. The goal of the project is to improve participants’ health and well-being through coordinated, personalized care in less restrictive settings, and reduce their usage of in-patient hospital beds. 
 
Santa Clara County staff will work in partnership with the transaction coordinator, the evaluator, and the service provider to finalize the project parameters. The ramp-up period activities will inform the final stages of transaction structuring work and ensure that Telecare Corporation, the service provider, is ready for service delivery at the start of the project period.
 


Third Sector Capital Partners, Inc., in partnership with the Conscience Community Network, LLC

Illinois

This Pay for Success (PFS) project will deliver comprehensive services throughout Illinois to adolescent youth, dually-involved in both the criminal justice and child welfare systems. Enabled by new levels of coordination with government agencies, a service provider network will provide intensive wraparound services and timely access to evidence-based therapies. The practices will safely serve youth in families and communities in lieu of institutional care, prevent repeat delinquent behavior, and support successful transitions to adulthood.

A subgrant of $135,000 from Nonprofit Finance Fund will allow Conscience Community Network, LLC to hire staff to manage the final stages of project construction.

While criminal justice- and child welfare-involved populations have both been the focus of prior PFS projects, this project would be the first to target individuals involved in both systems.


Tuscaloosa Research & Education Advancement Corporation, in partnership with Social Finance US

Nationwide

Nonprofit Finance Fund is providing a subgrant of approximately $150,000 to Tuscaloosa Research & Education Advancement Corporation (TREAC) to pursue transaction structuring activities, in partnership with Social Finance US, for a proposed Pay for Success (PFS) project to support veterans.  The proposed PFS project that the project team will pursue would deliver Integrated Individual Placement and Support (IPS), an evidence-based supported employment intervention, to more than 500 unemployed veterans who have been diagnosed with one or more mental health illnesses, including posttraumatic stress disorder (PTS), addictions, depression, and anxiety disorders.  The project would work in 10 to 12 sites nationwide, with services delivered in partnership with Veterans Health Administration Medical Centers.  Measurable outcomes could include veterans’ job placement and length of time a job is retained.

This proposed PFS program would be truly innovative as a national program that would seek to engage a federal agency as a back-end payor for the first time, specifically the US Department of Veterans Affairs (VA). The project would also pilot the involvement of private philanthropy to make success payments in the first phase of project roll out, in order to demonstrate the value of the PFS model and proposed intervention to the VA.

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