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Public Sector Solutions, Workforce & Economic Mobility, Results-Based Funding
Pay for Success (PFS) is a relatively new approach to social change focused on improving outcomes. Social Finance’s Tracy Palandjian and Harvard Kennedy School’s David Gergen coauthored this piece in Time, which defines PFS as an innovative public finance tool that drives resources towards effective social programs to improve lives.
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The model is a universal win: People in need get access to vital programs, taxpayers can hold governments accountable, high performing nonprofits are rewarded with new sources of capital, and investors receive both financial and social returns for their participation in the greater good.
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‘Government Only Pays for the Positive Outcomes.’ A Strikingly New Approach to Social Problems
This Washington Post article describes PFS and how the model is being used in Connecticut, South Carolina, and Colorado to improve social outcomes.