America Forward, the nonpartisan policy arm of New Profit, is excited to announce today that it will be a partner in a first-of-its-kind “Pay for Success” grant program from the Corporation for National and Community Service’s Social Innovation Fund (SIF).
Pay for Success (PFS) is an innovative approach to financing social service programs that holds the potential to greatly improve outcomes across government programs, while saving taxpayers millions of dollars over time. In a Pay for Success initiative, private funders assume up front financial risk, and taxpayers pay for a program only if a third-party evaluator determines that the initiative has achieved specific outcomes that create benefits to society and generate savings for government, such as reduced recidivism or better health outcomes. It is an approach that is about funding and scaling solutions that get real results, and there is a great deal of momentum behind it across the U.S.
The grant is part of a new $11.8 million SIF initiative that aims to build capacity among local governments and nonprofit service providers, so that they can take on new PFS programs and deliver strong outcomes and accountability. America Forward is partnered within the larger grant in a $1.9 million initiative that is being administered by Third Sector Capital Partners (TSCP), a pioneer in PFS that has been a driving force behind its growth in the U.S. At the center of the TSCP initiative is a competition for funding for local governments to use PFS to address local challenges. America Forward will be working to educate state and local policymakers on the competition and broader issues relating to PFS, while also contributing to larger efforts to broaden awareness of the approach. Other partners in the TSCP initiative include Abt Associates, the National League of Cities, the National Governors Association, and the National Association of Counties.
Read the full announcement and a fact sheet about the grant from Third Sector Capital Partners here.
The new SIF grant round is just one of the latest exciting examples of progress on PFS. Earlier this year, the Workforce Innovation and Opportunity Act (WIOA), which included a landmark provision to incentivize PFS programs that was championed by America Forward, passed both chambers of Congress with overwhelming bipartisan support and was signed into law by President Obama. America Forward’s parent organization, New Profit, is a core investor in the Massachusetts Juvenile Justice Pay for Success Initiative, the country’s largest such program, which aims to help at-risk young men escape the cycle of repeat incarceration that plagues so many urban communities.
For more information on PFS, visit America Forward’s website.
Note: As America Forward’s parent organization, New Profit is the named entity in the Social Innovation Fund grant, while America Forward is the executor of the activities related to the grant.
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