“Since its introduction, the concept of pay for success (PFS) financing has attracted attention from leaders interested in innovative social financing approaches. The model — which establishes outcomes-driven contracts between government and service providers, with up-front capital from private funders — shines a spotlight on the importance of evidence-based programs, strong nonprofit organizations, and government innovation. PFS has significant potential as a way to help embed evidence-based decisionmaking into how cities, counties, and states provide services and responsibly test promising interventions. Before launching a PFS project, stakeholders — such as governments, funders, and service providers — should assess the proposal to determine if PFS financing is a good fit for the problem they want to solve, the program that could provide a solution, the provider who could do the work, and the local public leadership that will champion the effort. … This tool will help stakeholders think about both the merits of a PFS project and how to deliver strong social services.”
This tool is included in our list of TEN NOTABLE RESOURCES FOR PAY FOR SUCCESS.