Pay for Success/Social Impact Bond Initiative
Pay for Success is a creative approach to funding social services, with potential to bring new, significant, and reliable resources to proven preventative programs. In a Pay for Success deal, private investors pay for preventative or interventional social services up front. Should these services deliver their intended results, governments then reimburse the investors with a return on their investment, while saving money on what they otherwise would have spent. It is a model designed to both improve outcomes and reduce costs.
With the arrival of Pay for Success (PFS) in the United States in 2010, we at NFF, along with many others in the sector, recognized its potential to catalyze improved delivery of and investment in better social outcomes. Equally as important was the recognition that PFS also had the potential to motivate a needed discourse among service providers, traditional and new social sector investors, governments and other stakeholders in the sector on how to align their efforts to improve our society's capacity to deliver better outcomes more cost effectively for the beneficiaries of social programs.
What We Do
NFF's work in PFS has focused from the outset on helping service providers, investors, and governments understand and build readiness for productive participation in a U.S. social sector where providing and accessing capital is increasingly tied to the achievement of meaningful and measurable outcomes. Since 2010, NFF has led sector-wide PFS education, outreach and convening efforts in close collaboration with multiple stakeholders, including the Corporation for National and Community Service's Social Innovation Fund, the Laura and John Arnold Foundation, the Rockefeller Foundation, The James Irvine Foundation, The Joyce Foundation, The William and Flora Hewlett Foundation, the White House Office of Social Innovation and Civic Participation, DoL, DoJ, OMB and numerous other service providers, state and local government entities, intermediaries and researchers. Through these efforts and our Pay for Success Learning Hub (payforsuccess.org), we aim to facilitate a balanced, objective and transparent dialogue on the opportunities and challenges PFS presents for all of us in the social sector
Please contact us if you are interested in learning more about NFF’s work in Pay For Success, and visit our Pay for Success Learning Hub to learn more!