SIM TIG Week: The Pay for Success Model

This post originally appeared on the AEA365 blog as part of their SIM TIG Week.

Hello! We are Brian Beachkofski and Jeannie Friedman, Pay for Success (PFS) advisors at Third Sector Capital Partners. We spend most of our time assessing feasibility and designing social sector programs with rigorous evaluations and evidence-based interventions embedded into their contracting structure.

PFS is an innovative contracting model (shown in the figure below) that drives government resources toward high-performing social programs. The PFS model is designed to merge performance measurement using administrative data and rigorous evaluation of

The prevalence of data in the social sector means that government agencies and nonprofit providers, in theory, have a wealth of information at their disposal to understand what works and more effectively deploy resources to achieve better outcomes. Administrative data (data collected by governments or nonprofits as part of administering a specific program) in particular provides a cost-effective and accurate way to understand participant outcomes and break the silos between agencies serving similar populations who operate in different policy domains.

The practical reality is that providers and government agencies cannot easily

This article originally appeared on America Forward’s blog as a part of their Evidence in Action series. Follow along on Twitter with #EvidenceinAction and catch up on the series here.

Thanks to the persistence of social entrepreneurs across the country, every day we see strategies that are working and delivering results in a rapidly changing world. This Evidence in Action blog series highlights the voices of the more than 70 social innovation organizations that make up the America Forward Coalition, the results-driven solutions our community has for our country’s most pressing social

Social impact is a dynamic and growing field, with many different types of actors who each have unique strategies and goals. The Wharton Social Impact Conference, hosted by the Wharton Social Impact Initiative, brought together leaders in the space to discuss their approaches, emphasizing innovative tools and models.  While social impact crosses fields, many practitioners are thinking about common themes, directly related to our work at Third Sector. As we bring together stakeholders to orient social services towards outcomes, we often think about how to best leverage data, the long-term

When we started Third Sector six years ago, my co-founders and I had a fundamental assumption: the increasing availability of data would empower government to allocate its resources to programs that measurably improve lives. We began by testing Pay for Success (PFS) as a contracting tool to catalyze this shift.

Six years and six PFS contracts later, we are proud of our work reallocating over $100M in public sector funding to outcomes-driven programs. But we have also found our central assumption challenged in three ways:

Public sector data infrastructure is not built

Brian Beachkofski leads Third Sector’s efforts in data, evaluation, and modeling to include developing and executing strategy, capturing best practices, and providing training.

This post is based off a recent speech I made at the Harvard University Center on Education Policy Research for a meeting of the Proving Ground partners. Proving Ground is an initiative committed to helping education agencies meet their practical needs, by making evidence cheaper, faster, and easier to use. Their goal is to make evidence-gathering and evidence-use an intuitive part of how education agencies conduct their daily