APPROACH:
The SIF will establish its first ever Pay for Success (PFS) Competition in 2014 and commits to distribute up to .2 million in federal grants to nonprofit organizations and state and local governments to pursue PFS projects. Consistent with the broader mission of the SIF, the PFS Competition intends to encourage the implementation of PFS projects in order to enhance the reach and impact of innovative community-based solutions in low-income communities. SIF is acting on new congressional authority provided in the 2014 appropriations act to implement the PFS competition.
The PFS Competition aims to: 1) strengthen and diversify the pipeline of governments and nonprofit organizations that are prepared to engage in PFS projects; 2) provide and help attract capital to high-performing institutions seeking to strengthen, grow and sustain effective solutions for challenges facing low-income communities; and 3)assess the potential of PFS to address a variety of social issues relating to diverse populations and in diverse geographic contexts.
The SIF Pay for Success Competition seeks to advance and evaluate emerging models that align payment for social services with verified social outcomes. To achieve these goals, the PFS Competition seeks to fund activities that advance PFS projects and transactions in the near term (1 to 3 years). It will do so by supporting technical assistance to 1) Assess Feasibility and Develop PFS Capacity, and 2) Structure PFS Transactions.
This competition is open to nonprofit organizations, public or nonprofit universities, foundations, state and local governments (and other political subdivisions), tribes, as well as certain faith-based organizations with practical experience in social finance (and related fields), designing and implementing open application processes, and managing grantees and sub-recipients. Successful applicants will have a high-performing track record, experience with social finance, PFS, and social innovation.
In line with SIF's primary focus, the PFS Competition will target activities in three focus areas: 1)Youth Development - Preparing America's youth for success in school, active citizenship, productive work, and healthy and safe lives; 2) Economic Opportunity - Increasing economic opportunities for economically disadvantaged individuals; and 3) Healthy Futures - Promoting healthy lifestyles and reducing the risk factors that can lead to illness.
In order to encourage innovation and expansion of the PFS model, the competition will prioritize applications which target social issues, geographic areas; and populations which have not been part of PFS projects to date. SIF Grant Funds have a 1:1 matching requirement and thus will leverage an additional .2 million in funding and in-kind value over three years for total value of .4 million.
ACTION PLAN:
The SIF will release a Notice of Funding Availability on June 25, 2014 with applications due on July 30, 2014.
A team of reviewers comprised of internal CNCS staff and experts in the federal government will assess applications based on the Program Design, Organizational Capability, Leadership and Team, and Cost Effectiveness and Budget Adequacy selection criteria. Each application will be reviewed by at least three expert reviewers. Qualified reviewers within the federal government will bring expertise and knowledge in pay for success, social impact bonds, social innovation, philanthropy, evidence-based solutions, nonprofit evaluation, opportunity youth, healthy futures, economic opportunity, and youth development to provide insight and input on the eligible applications.
In order to build awareness and attract and inform a diversity of applicants, the SIF and Office of Social Innovation will publicize and hold a series of information sessions that are open to the public.
Funds will be obligated by September 30, 2014 and distributed over a maximum three year grant period. SIF is acting on new congressional authority provided in the 2014 appropriations act to implement the PFS competition.