$13 Million in Funding to Support Pay for Success Projects
|Federal Agency Announces $13 Million in Funding to Support Pay for Success Projects
STANFORD UNIVERSITY, UNIVERSITY OF UTAH, SOCIAL FINANCE, AND URBAN INSTITUTE AMONG NEW GRANTEES
WASHINGTON, D.C. – The Corporation for National and Community Service (CNCS), today announced more than $13 million in funding for Pay for Success (PFS) projects through its Social Innovation Fund (SIF). Announced by Lois Nembhard, acting director of the Social Innovation Fund, at the Association for Public Policy Analysis and Management Fall Research Conference in Washington, D.C., this funding includes awards to four new organizations selected as part of SIF’s Pay for Success program and winners of a pilot program focused on utilizing data to demonstrate impact, as well as continuation funding to existing grantees.
The Social Innovation Fund is a powerful approach to transforming lives and communities that positions the federal government to be a catalyst for impact – mobilizing private resources to find and grow community solutions with evidence of results. In 2014, the SIF reinforced its commitment to support innovative solutions and change how public and private sector investors allocate philanthropic resources by launching its Pay for Success program. This $30-plus million grantmaking initiative was designed to help cities, states, and nonprofits develop PFS projects, which tie funding for social services to its true impact in the community.
“The Social Innovation Fund is changing the way the government serves the public by using rigorous evaluation and evidence to find what works and make it work for more people. This group of Pay for Success grantees represents a diverse group of high-performing organizations, and all are at the cutting edge of social financing and innovation,” said Lois Nembhard, acting director of the Social Innovation Fund at the Corporation for National and Community Service. “Through Pay for Success, the Social Innovation Fund is piloting a new way of doing business that is laser-focused on results. We are proud to be deepening our support for efforts that meet the needs of American communities in more efficient and effective ways.”
Through their most recent round of Pay for Success grants, the SIF is providing $6.77 million in funding to four organizations. This funding will help build the pipeline of Pay for Success projects for local governments, with the goal to get more PFS projects launched. These efforts will support the advancement of emerging models that align payment for social services with verified social outcomes. This year’s winners include:
· Corporation for Supportive Housing ($1.1 million)
· Coalition to End Childhood Lead Poisoning ($1.77 million)
· Social Finance, Inc. ($1.44 million)
· Third Sector Capital Partners ($2.4 million)
Awards provided through the Social Innovation Fund (SIF) Pay for Success Administrative Data Pilot competition, $4.05 million in total, will help current PFS projects better demonstrate the impact of their programs by providing support for access to high-quality, less-expensive data for evaluation purposes. Winners of this competition are:
· The Stanford Center on Poverty and Inequality, in partnership with Third Sector Capital Partners ($1.5 million)
· The Urban Institute ($1.05 million)
· University of Utah's David Eccles School of Business ($1.5 million)
In the next several months, organizations awarded will hold an open competition to select organizations engaged in PFS activities to receive training and technical assistance valued between $75,000 and $400,000.
An additional $2.6 million in continuation funding was provided to Pay for Success grantees awarded in 2014. These organizations include: Institute for Child Success, Inc., National Council on Crime and Delinquency, and Nonprofit Finance Fund.
Earlier this year, two of the 2014 SIF-supported PFS projects came to fruition. The nation’s first Environmental Impact Bond, issued through DC Water, received technical assistance from Harvard Kennedy School Government Performance Lab. Nonprofit Finance Fund provided technical assistance to the second project, Denver’s Social Impact Bond, that will allow for services to be delivered to chronically homeless individuals through Enterprise Community Partners, Inc., in partnership with the Corporation for Supportive Housing.
Created in 2009, the SIF has grown into nearly a $1 billion social impact incubator within the federal government, creating more than 450 public-private partnerships that deliver high-impact, community-based solutions that work.
The Social Innovation Fund (SIF) is a program of the Corporation for National and Community Service, a federal agency that engages millions of Americans in service through its AmeriCorps, Senior Corps, and Volunteer Generation Fund programs, and leads the President's national call to service initiative, United We Serve. The SIF empowers organizations to identify and support sustainable solutions that are already making a significant impact in transforming communities. For more information, visit nationalservice.gov