“Pay for Success has the promise to transform the way government contracts for social services. By leveraging data, rigorous evaluation, and evidence-based interventions, PFS encourages governments, service providers, and funders to collaborate on projects that aim to measurably improve the lives of people in need.”
-John Grossman, Co-President and General Counsel, Third Sector Capital Partners, Inc.
In January 2014, Living Cities joined with the Commonwealth of Massachusetts, Third Sector Capital Partners, Goldman Sachs, Kresge, New Profit Foundation, and other local and national private and philanthropic funders to launch a Pay for Success (PFS) initiative.
Pay For Success is an innovative financing structure that redirects public spending by encouraging innovation and rewarding initiatives that work. The Massachusetts Juvenile Justice Social Innovation Financing (SIF) Project, with Roca Inc., a Chelsea nonprofit, is designed to improve outcomes for hundreds of at-risk young men in the probation system or leaving the juvenile justice system.
This infographic illustrates how Pay for Success works through the lens of this initiative.