Pay for Success aims to measurably improve the lives of people most in need by driving resources toward better, more effective programs.
At its core, Pay for Success is a public-private partnership which funds effective social services through a performance-based contract. Pay for Success projects enable federal, state, and local governments to partner with high-performing service providers by tapping private investments to expand effective programs.
If, following a rigorous evaluation by an independent third party, the program achieves predetermined outcomes, then government repays the original investment. However, if it does not achieve its target results, government pays nothing.