The New York City-based Nonprofit Finance Fund has announced grants totaling $1 million to five organizations in support of pay-for-success projects.
In 2014, NFF received $3.6 million from the Corporation for National and Community Service's Social Innovation Fund to strengthen the pipeline of state and local governments and service providers implementing pay-for-success projects. Selected based on their ability to deliver positive social outcomes and the replicability of their projects, grant recipients include Enterprise Community Partners, which will use the funds to provide supportive housing to three hundred chronically homeless individuals in Denver; Third Sector Capital Partners, which delivers comprehensive services in Illinois to adolescent youth involved in both the criminal justice and child welfare systems; the Jewish Vocational Service, which will provide English-language instruction and job-search assistance to nearly twenty-five hundred adult learners in the greater Boston area; Salt Lake County, which aims to simultaneously launch projects in the areas of maternal and child health, homelessness, and criminal justice; and the Tuscaloosa Research & Education Advancement Corporation, which will work to expand individual job-placement and support services at Veterans Administration medical centers across the country.
Pay-for-success approaches combine the resources and shared interests of the public, private, and nonprofit sectors to improve communities through better health, education, job placement, and other services. Mission-driven investors cover the upfront costs of delivering the programs and, if the predetermined goals are achieved, as measured by an independent evaluator, the government repays those who made the original investment.
"With community needs outpacing available services, we must get better at addressing critical issues by catalyzing new ways for government and nonprofit leaders to work together," said NFF chief executive officer Antony Bugg-Levine. "This support will pay social dividends now and in the future by enabling inspiring leaders to tackle complex social challenges with thoughtful, evidence-based programs."