Project Evident believes that evidence building is an important part of developing Pay for Success (PFS) structures in the social sector.
Evaluation and data collection can inform how services are delivered over time, which services are most viable to the community in question, and how funds should be distributed within programs.
Nonprofit organizations that are looking to move toward a Pay for Success funding model - where they secure up front capital for programs from private donors and use government funding to repay it, can learn from this resource from The Urban Institute.
Starting with descriptions of incentives for funders, the resource also poses questions to consider including structure, repayment, mitigating risk, and developing a plan for a PFS structure.
Its content is based partly on stakeholders’ experiences with ongoing PFS projects.
This resource takes a deep dive into Pay for Success + Early Childhood Education, and includes tools to help others working in early childhood education build their own PFS projects, and to begin advocating for PFS specific legislation.
You can access the resource here.