The Social Impact Partnerships to Pay for Results Act (SIPPRA)

Last year a bipartisan congressional effort resulted in a new $100 million fund available to states and local governments seeking funding for exceptional social service programs. The Social Impact Partnerships to Pay for Results Act (SIPPRA) gives governments a new opportunity to take advantage of federal funding to pay for proven outcomes. The announcement and implementation of SIPPRA is part of a broader movement that Third Sector has helped lead over the last seven years. This is a valuable opportunity for communities to take advantage of this new funding stream in 2019.

The Notice of Funding Availability (NOFA) for SIPPRA is expected to be released in February 2019.  Third Sector is available to field questions from state and local governments that are preparing proposals, and to support them and their partners in meeting the SIPPRA guidelines. For starters, below we have highlighted the different requirements for seeking SIPPRA funding and include checklists to support your staff design proposals.  

Third Sector is excited by the federal government’s leadership in using outcomes contracting to create financial and programmatic incentives to improve lives. At the systems level, we look to SIPPRA as an opportunity to disrupt the status quo of service delivery by breaking down silos between funding streams and data collection that can amplify impact when merged. At a community level, we look to SIPPRA as an opportunity to raise community voice, and incorporate a more human-centered approach to serving community needs. Ultimately, the federal government will reward these efforts by paying for a program only if predetermined outcomes have been met and validated by an independent evaluator.

How to Apply for SIPPRA Funding

With the NOFA release expected to be released in February 2019, states and local communities should begin actively developing a strategy on the type of proposal it would consider submitting. SIPPRA presents two funding categories:

Outcomes Payments Proposals: This opportunity is providing $75 million in funding for direct payments to applicants for the delivery of specific outcomes. An additional, $15 million will be available for conducting a rigorous evaluation to validate the outcomes of the proposed program. Outcome Payment proposals are best suited for projects that are “shovel ready” (i.e., governments are ready to initiate an outcomes contract or are looking to expand an existing contract). The NOFA for these proposals is expected to be released by the U.S. Department of the Treasury in February 2019 via a soon-to-be-released online portal.

Feasibility Study Proposals: This opportunity is providing $10 million in funding designated for assessments to determine the likelihood of success for an identified program. Feasibility Study proposals are best suited for governments with committed interests and resources to explore outcomes contracting.  Since establishing partnerships for these contracts can be time and cost intensive, SIPPRA funds will cover half the costs of a feasibility study for up to nine months. The NOFA for these proposals will be released by the U.S. Department of the Treasury later in 2019 via a soon-to-be-released online portal.

For either SIPPRA proposals, the following minimum requirements apply, among others:

• State or local governments will serve as the lead applicants
• Services must abide by an evidence-based model addressing one of 21 identified social outcomes in Figure 1
• Quantification of how the program yields savings to the local, state, or federal government
• Documented strong likelihood of success for the project either through a formal Feasibility Study or a demonstrated track record

Figure 1: Summary of Outcomes Addressed by SIPPRA Proposals

Click here to receive updates from Third Sector about SIPPRA. 

If you have specific questions about SIPPRA, its requirements, & other funding opportunities, please contact Oscar Benitez, Manager at obenitez@thirdsectorcap.org