GREENVILLE, S.C. (July 8, 2013) – The Institute for Child Success’ Vice President of Policy and Communications, Joe Waters, joined his colleague, Megan Golden of New York University’s Wagner School of Public Service, in presenting on the applicability of social impact financing to high-quality early childhood programs in Washington, DC today at a White House meeting on Advancing the Field of Pay for Success. The event was co-hosted by the White House Office of Management and Budget and The Rockefeller Foundation.
Before an audience of 150 leaders from across the United States, Waters and Golden presented a synopsis of the Institute’s recent findings that demonstrate the feasibility of using Pay for Success financing mechanisms to scale and sustain Nurse-Family Partnership, a proven home visiting intervention for first-time, low-income mothers.
Tony Keck, Director of the South Carolina Department of Health and Human Services, also attended the meeting.
About Pay for Success Financing
Pay for Success financing is a new approach to funding proven programs that have a positive social impact and save governments money. It is a partnership in which philanthropic funders and investors—not governments—provide the capital to scale social programs. Nonprofits deliver the programs and the government pays for the outcomes if…and only if…the program succeeds and the goals are achieved. In other words….pay for success…not the promise of success.
The government contracts with an intermediary for carefully defined outcomes such as reduced crime or hospital stays or homelessness that produce net savings. Impact investors or foundations provide capital to scale up interventions that have been shown to produce those outcomes. The intermediary contracts with nonprofit service providers to operate the programs at a large scale. An impartial evaluator determines whether the outcomes are achieved. If the outcomes are achieved, the investors get a small return on their investment.
For the last year, the Institute for Child Success has been exploring the PFS model as a means of sustaining and scaling high impact programs that serve young children and their families.
The Institute for Child Success is a research and policy organization that leads public and private partnerships to align and improve resources for the success of young children in South Carolina. A partnership of the Greenville Health System’s Children’s Hospital and the United Way of Greenville County, ICS supports those focused on early childhood development, healthcare, and education—all to coordinate, enhance, and improve those efforts for the maximum effect in the lives of young people. For more information: