Nonprofit Finance Fund serves as significant contributor and trusted advisor to service providers, government, and other stakeholders exploring PFS Financing. Since 2011, we have led outreach efforts to multiple stakeholders and acted as pre-transaction advisor to a wide variety of parties pursuing a PFS model. We have supported government agencies (HUD, DOL, DOJ and OMB) as they have advanced PFS projects, and served as trainer and advisor to local governments and nonprofits looking to participate in PFS and outcomes-based finance more generally. In addition, NFF maintains the Pay For Success Learning Hub as a platform for education and information dissemination on the potential benefits and challenges of PFS Financing in the United States. Contact us if you are interested in learning more about NFF’s work in Pay For Success
'Pay for Success' projects, also known as SIBs, align the interests of the private and philanthropic investors with the public, around a shared vision of desired social outcomes. Instead of compensating investors based on the volume of services delivered, incentives are tied to positive results. By concentrating investment in proven, high-impact interventions that create measurable social benefit, Pay for Success Financing has the potential to save taxpayers money.
Enthusiasm for the model has grown internationally, following a pilot project in the U.K. designed to reduce re-offending rates among released prisoners. The U.K. government will make payments to investors based on the program’s measurable success stemming returns to prison. (See a video about this project here!) Adapting the Social Impact Bond model for the U.S. could have tremendous implications for the way social needs are funded.
NFF's Pay for success Learning Hub
As many in the United States contemplate the applicability of Pay for Success or Social Impact Bonds models in funding social programs, we have established an online community to facilitate discussion. All are welcome! We invite you to join the conversation at payforsuccess.org! Below is a screenshot of what the group looks like. Tabs across the top offer easy access to Learn out Loud (a repository of important resources), Toolkit (resources for nonprofits and other service providers), Networks, Events, and Members area where you can see who else shares your interest in SIBs. By gathering resources and interested stakeholders in one place, we're confident that this site will serve as the go-to resource for information-sharing as pay-for-performance experiments emerge.