Outcomes-Based Financing

Aligning Investment Capital with Social Outcomes

Performance-based investment structures, such as Pay for Success and Social Impact Bonds, present an exciting opportunity to introduce new investors and capital to high-impact, evidence-based programs in the United States. Building on the Community Investing Working Group of prior years, the new 2016 Outcomes-Based Financing Working Group will focus on cross-sector collaborations and new investment tools and products to expand high-impact transactions and better align capital with social outcomes in health, education, housing, and criminal justice.

2016 Subtopics

Expanding Early Childhood Pay for Success (PFS) Transactions

PFS is a promising tool to align investments with proven interventions. Attendees will explore the significant opportunity to work with government and implementing partners to build the PFS pre-development pipeline and expand the number, type, and scale of early childhood PFS transactions.

Aligning Capital with Evidence-Based Criminal Justice Interventions

As counties and states move toward implementing a range of criminal justice reform programs, there is an important opportunity to align and mobilize capital and investments with evidence-based interventions. Attendees will assess how to improve social, health, and community outcomes through these opportunities.

Scaling Investments for Place-Based Health Outcomes

Health systems and insurance companies, governments, funders, intermediaries, and community organizations are coming together to design and implement place-based, multi-sector initiatives. Attendees will learn how to align people, strategies, and capital to improve health outcomes and reduce health care costs.

Innovative Commitments

Catalyzing Investment in Pay for Success

Commitment by: Nonprofit Finance Fund (NFF)
In 2014, NFF committed to bring subordinated debt investment capital to the market to support and catalyze Pay for Success (PFS) transactions. NFF committed to investing up to $1.1 million in one to three PFS transactions and aims to leverage eight times this amount from philanthropic and other subordinated debt investors. NFF will explore various sectors for this investment, including health, youth and families, and/or homeless services space.

Aligning Health Strategies with Community Development

Commitment by: Center on Social Innovation and Finance at the Carsey School of Public Policy, University of New Hampshire Partners: IFF; New Hampshire Community Loan Fund; MacArthur Foundation; Annie E. Casey Foundation
In 2015, the Center on Social Innovation and Finance at the University of New Hampshire and its partners committed to accelerate the alignment of health improvement strategies and community development investments in neighborhoods where health inequities are concentrated. Hospital leaders, public health administrators, community development financial institutions, and other local stakeholder organizations will seek to create formal agreements to implement one or more models of aligned investments of resources.

Denver’s Supportive Housing Social Impact Bond

Commitment by: City & County of Denver
Commitment Partners: Social Impact Solutions; Corporation for Supportive Housing; Enterprise Community Partners; Colorado Coalition for the Homeless; Mental Health Center of Denver; Urban Institute; Colorado Access

In 2014, the City and County of Denver, along with its local partners, committed to develop a Social Impact Bond to finance an evidence-based supportive housing initiative for at least 200 chronically homeless individuals who also struggle with mental health and substance abuse challenges. By July 2015, the commitment had engaged core partners, such as the Mental Health Center of Denver and the Colorado Coalition for the Homeless, for program implementation and plans were created for two housing developments.

Featured Past Participants

Ascension Health
Bank of America Corporation
Centers for Medicare & Medicaid Services
Enterprise Community Partners
Federal Reserve Board of Governors 
Ford Foundation
Goldman Sachs
The Kresge Foundation
Morgan Stanley
Nonprofit Finance Fund
The Reinvestment Fund
Social Finance
Third Sector Capital Partners 
United Healthcare
Urban Institute
Wells Fargo