We are excited to announce the launch of our Results Act Incubator, which will provide free technical assistance to up to four government partners interested in accessing the $100 million in federal funding made available through the Social Impact Partnerships to Pay for Results Act (Results Act).
Currently one in five American children live in poverty; over 2.2 million Americans are incarcerated; and the U.S. maternal death rate persists as one of the worst in the developed world. To address these and other persistent challenges, Social Finance builds Pay for Success projects: public-private partnerships that fund effective social services through performance-based contracts.
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 an independent evaluation, the program achieves predetermined outcomes that benefit society and generate value for government, then government will make outcomes payments to investors. However, the government pays only at the level of outcomes achieved.
Since 2011, Social Finance has developed a full range of Pay for Success tools to help governments design, fund and manage effective social services that disrupt the status quo and shift mindsets to align resources with impact. With over $85 million in capital mobilized towards Pay for Success projects, it is clear that our mission of effectively directing dollars towards measurable impact resonates with stakeholders.
In February 2018, Congress passed the Results Act to provide $100 million to support state and local Pay for Success initiatives. Up to $75 million is available for matching outcomes payments; up to $15 million for evaluation costs; and up to $10 million is available for feasibility studies. Fifty percent of outcomes funding granted must be used for initiatives that directly benefit children.
The U.S. Treasury will administer the Results Act Fund and is expected to launch its first Request for Procurement in February or March 2019.
State and local governments looking to apply for Results Act funding are required to develop a fully detailed Pay for Success project. To support governments in the application process, Social Finance will dedicate a project team to each government partner selected through the Results Act Incubator. Our assistance will help each government determine a high-priority social issue, identify community-based interventions that address the issue, value benefits to all levels of government, and develop a Results Act application.
Whether they seek to train a skilled workforce, support elementary education or help ensure that families are healthy and resilient, Social Finance can provide governments with the tools to leverage Results Act funding in support of their goals.
Interested in driving better results in your community? Apply to the Social Finance Results Act Incubator.
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Last Thursday evening, government leaders, service providers and impact investors gathered in one of the largest meeting rooms in the Capitol to celebrate the Social Impact Partnerships to Pay for Results Act (SIPPRA), the historic federal…