Pay for Success Resources

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Pay for Success (PFS) is a public-private financing mechanism designed to improve social outcomes for at-risk populations.

PFS projects have been used at varying scale in communities across the country to address social challenges such as lowering recidivism, ending chronic homelessness, unifying homeless parents with their children who are in the foster care system, and improving elementary school preparedness. The PFS model first launched in the United Kingdom in 2010.

In a PFS project, private and/or philanthropic capital is used to finance a social intervention for a targeted population. If the intervention successfully meets agreed-upon outcomes, then an “end-payor” (typically a government agency) provides repayment to the initial investors, usually with a modest return. PFS project terms range depending on the specific intervention and stakeholders involved, but PFS projects typically last for at least 5 years. Enterprise is a partner in two currently operating Pay for Success projects, both of which center on providing housing and social service delivery to homeless individuals or families.