California Pay for Success Initiative Participants Announced
MAY 7, 2014
The Nonprofit Finance Fund and the James Irvine Foundation have announced the projects selected to participate in the California Pay for Success Initiative, a social impact bond initiative launched by Irvine and NFF in January.
The initiative will provide $2.5 million in initial funding as well as technical assistance to five local government agencies and social service providers working to structure pay-for-success agreements in California over the next two years. In such an agreement, private investors fund promising interventions and receive a return on their investment from the government if results are achieved. Participants in the initiative also will form a learning cohort to share their experiences, challenges, and outcomes.
Participants include the Center for Employment Opportunities and REDF, which will use the funds to conduct cost-benefit and program impact analyses related to the scaling of a program aimed at reducing recidivism and improving employment outcomes for formerly incarcerated individuals in San Diego County; the County of Los Angeles, which will use its funds to develop a blueprint to help county executives select high-impact interventions; the City and County of San Francisco, which will conduct feasibility and cost-benefit analyses of how the pay-for-success model could enable a greater focus on preventative services within city and county agencies; the County of Santa Clara, which is pursuing two projects to reduce suffering and increase wellness for the chronically homeless and the acutely mentally ill; and the Nurse-Family Partnership, which will analyze return on investment at the county level and convene stakeholders to scale its home-visitation program for first-time mothers living in poverty in the Bay Area and Orange County.