Pay for Success Competition
The Sorenson Impact Center and Social Finance today re-opened their nationwide competition to develop Pay for Success (PFS) projects that expand high-impact social interventions and measurably improve the lives of those in need.
Pay for Success projects bring the private, public, and social sectors together in uncommon partnerships and harness the power of the capital markets to address critical social and environmental challenges. Independent evaluators measure the effects of a program based on specific metrics that benefit both individuals and society and generate value for taxpayers. Government then repays investors or service providers as outcomes are achieved. Pay for Success approaches include outcomes-based contracts, outcomes rate cards and social impact bonds.
“Pay for Success is an engine that drives the right resources toward the programs that demonstrate evidence of providing assistance to at-risk individuals and families,” said Jeramy Lund, Interim CEO at the Sorenson Impact Center. “We look forward to a continued partnership with Social Finance as we collectively build our understanding of what’s actually working and fund those successful programs when addressing difficult social problems."
Social Finance and the Sorenson Impact Center will provide technical assistance for up to two communities to help them structure PFS projects and prepare for long-term success.
Proposals may come from state, local, or tribal governments and non-profit service providers with a letter of commitment from an outcomes payor. Awardees will receive project design assistance, capacity-building to manage projects over the long-term, and comprehensive communications and stakeholder engagement strategies.
“Social Finance works with communities across the country to develop innovative financing models that are focused on delivering positive outcomes,” said Tracy Palandjian, CEO and Co-Founder of Social Finance. “Through this competition, we are excited to support state and local governments that are interested in using Pay for Success to deliver meaningful, enduring results.”
Awards through this competition build recipients’ capacity to structure PFS projects. The value of the assistance provided will range from $75,000 - $400,000, based on the needs of the recipient and the project. Past awardees are using PFS to address critical issues in their communities, including scaling high-quality pre-K education and strengthening workforce development opportunities.
The competition is supported by a 2016 grant from the Social Innovation Fund, which was a program of the Corporation for National and Community Service that received funding from 2010 to 2016.
The deadline for applications is August 7, 2018. Transaction structuring services will begin in August 2018.