Pay for Success is a set of innovative outcome-based financing and funding tools that directly and measurably improve lives by driving resources towards results. Through pay for success tools, Governments will have the policy lever to efficiently allocate public funds to scale effective interventions and programs that better serve the people.
Social Impact Bonds are unique public-private partnerships that fund the delivery of effective services through performance-based contracts. Under social impact bonds, funds for implementation is provided by private funders, such as impact investors and philanthropies; another institution works to implement the activity and repayment is contingent on the achievement of the objectives of the activity.
Government Agency identifies a social development challenge. Social Finance works with the Government Agency to design an intervention that addresses the development challenge. The design outlines the objects of the initiative
Social Finance works with the government agency on the financing structure. Social Finance raise capital from private funders, like donor partners, impact investors and philanthropy, to provide upfront, flexible funding.
An institution is identified to implement the project. Implementation is done with the support of Social Finance in areas such as performance management.
An independent evaluator measures the impact of the project according to predetermined outcome metrics. If the project is successful, government repays private funders.
To enhance the effectiveness of public resources and programs, Social Finance work to in introduce results-based financing tools in public service delivery. This is to drive incentives for managers on government activities to achieve impact.
We work with Funding Partners to identify a social development challenge based on national and sector development plans, district development plans and annual progress reports of sectors and districts. Social Finance then works to design an intervention that addresses the identified challenge with metrics of success. We engage and partner with the Agency on the implementation of the initiative to achieve the outcomes metrics agreed upon. The Agency implements the initiative using Government funds. Social Finance evaluates achievement of pre-determined outcomes metrics. Funds are disbursed to the Agency based on the achievement of metrics.
We work with Government Agencies to develop Outcome Rate Card for public services that are outsourced for delivery by third parties. The outcomes rate card is a set of metrics for which service providers can earn a payment for the achievement of each metric. Through the outcome rate card, government agencies can predefine operational and performance priorities, tied with a monetary incentive to influence service provider performance. Outcome Rate Card is a measurement tool used for procurement the procurement of service providers to deliver public services. It facilitates discussion on priority metrics, promote transparency and accountability for social programs, and enhance impact through effective utilization of public funds.
Every conversation has the potential to spark change. Whether you’re a policymaker, funder, development partner, or simply passionate about outcomes that matter, we’d love to hear from you.