The Next Phase of Pay for SuccessDriving Public Sector Outcomes

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