One of the most valuable roles a foundation can play is to invest in promising solutions being tested out by talented leaders at a moment in time when, if they succeed, a breakthrough just might be possible.
I’m excited to announce a new initiative that strives to do just that. Today, The James Irvine Foundation, in close partnership with the Nonprofit Finance Fund, launches the California Pay for Success Initiative, initially funded with $2.5 million, designed to make the “Pay for Success” model a reality in California.
Pay for Success is a creative approach to funding social services, with potential to bring new, significant, and reliable resources to proven preventative programs. In a Pay for Success deal, private investors pay for preventative or interventional social services up front. Should these services deliver their intended results, governments then reimburse the investors with a return on their investment, while saving money on what they otherwise would have spent. It is a model designed to both improve outcomes and reduce costs.
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