Comprehensive literature review that details the benefits and best practices of implementing a Pay for Success funding strategy.

“The term ’Pay for Success’ (PFS) refers to an innovative method of financing social services that shares risks and rewards through collaboration of public, private, and nonprofit sectors. PFS is based upon two core premises: first, that government should pay only for services that are demonstrably effective; and second, that the risk of providing social services—which may or may not prove to be effective—can be transferred from local and state governments that usually fund these services to the private sector” (p.1).

“The purpose of this document is three-fold: (1) To provide a brief historical context of PFS projects and descriptions of the six PFS projects currently being implemented in the United States, based on publicly available documentation; (2) To provide a brief summary of key formative and conceptual literature in the PFS field to date, and various themes and recommendations that may inform the continued development of the PFS model; (3) To provide information that can be used as a reference for [Corporation for National and Community Service] and stakeholders interested in the Social Innovation Fund’s PFS Grant Program” (p.3).

(Abstractor: Author)