NLC Provides Support to Cities to Make ‘Pay for Success’ Projects a Reality

Pay for Success
Pay for Success

State and local governments to receive technical assistance to advance Pay for Success projects in early childhood education and youth development.

Pay for Success (PFS) is an innovative contracting and financing model intended to help local governments scale effective human service programs. PFS leverages philanthropic and private dollars to fund services up front. If the program succeeds in delivering services that measurably improve the lives of people it is meant to serve, then the county, state or federal government repays those who made the original investment, and typically saves money overall through greater efficiencies. If the program does not achieve its target results, government does not repay the investors. This ensures that taxpayer dollars flow to programs that achieve the greatest results.

Third Sector Partners LogoIn 2014, Third Sector Capital Partners (Third Sector), received $1.9 million from the Corporation for National and Community Service’s Social Innovation Fund to help strengthen the pipeline of state and local governments and service providers prepared to implement Pay for Success projects. Third Sector recently announced the selection of seven awardees to receive federally funded technical assistance to assess the feasibility of implementing PFS.

NLC is partnering with Third Sector to deliver technical assistance to the awardees, with a particular focus on the cities included in this cohort - Las Vegas and Austin, Texas. These cities have demonstrated a commitment to funding high-quality, effective social interventions that produce measurable outcomes in the areas of early childhood education and health and teen pregnancy prevention, and are using this opportunity to gauge how PFS can help further their efforts.

Las Vegas, in partnership with and the State of Nevada and Clark County, Nev., will explore the use of PFS in developing strategies to improve social outcomes in early childhood education, with a focus on using PFS to improve school readiness and academic performance for disadvantaged children. NLC will advise the Nevada team and Third Sector on project design, drawing upon the extensive experience of the Institute for Youth, Education, and Families in supporting citywide early childhood projects.

Austin, with leadership from the Austin/Travis County Health and Human Services Department, will focus on the feasibility of using PFS to reduce teen pregnancies among Hispanic youth and to improve birth outcomes among African Americans.

The seven awardees represent the first of two cohorts to receive technical assistance. Third Sector will select a second cohort through an open competition later this year. Stay tuned for more information on how you can apply to be part of this unique opportunity to help improve the lives of your community’s most vulnerable residents.

Related Topics