Newswise — SALT LAKE CITY—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.
For more information, visit http://sorensonimpact.com/sif-structuring-grant.
About the Social Innovation Fund
The Social Innovation Fund was 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 nation’s volunteer and service efforts. SIF positions the federal government to be a catalyst for impact—using public and private resources to find and grow community-based nonprofits with evidence of results. The Social Innovation Fund focuses on overcoming challenges confronting low-income Americans in three areas of priority need: economic opportunity, healthy futures, and youth development. To learn more, visit www.nationalservice.gov/sif
About the Sorenson Impact Center
The Sorenson Impact Center, housed at the University of Utah’s David Eccles School of Business, is a think-and-do tank that marshals capital for social good, empowers data-driven programs, breaks down silos across sectors, and equips the next generation of leaders with social purpose. To learn more, visit www.sorensonimpact.com
About Social Finance, Inc.
Social Finance is a 501(c)(3) nonprofit organization dedicated to mobilizing capital to drive social progress. Social Finance is committed to using Pay for Success to tackle complex social challenges, facilitate greater access to services for vulnerable populations, and direct capital to evidence-based social programs – all with the goal of measurably improving the lives of people most in need. Social Finance has deep experience in the design and implementation of Pay for Success projects, from early-stage feasibility assessment, to project development and capital formation, to post-launch performance management and investment support. In the eight years since Social Finance UK (sister organization to Social Finance US) launched the world’s first Pay for Success project, over 100 projects have launched in 24 countries, including 21 projects in the United States.