Click on the image to read the report Third Sector is pleased to present, in partnership with GuideStar and America Forward, the new survey, “Towards a Performance-Driven Social Sector: A Service Provider Perspective on Trends in Government Contracting.” Across the country, communities are changing the way they serve people in need. Local and state governments are taking a new look at how they contract for social services delivered to our most valuable citizens. Closer examination of current contracting practices may ultimately outline a path to healthier, safer, and more just communities, …

In celebration of their 25th Anniversary, Living Cities recognized 25 Disruptive Leaders who are working to improve economic outcomes for low-income people in America’s cities. We are proud to share that Third Sector president Caroline Whistler was included on this remarkable list. Caroline was recognized for her leadership and work at Third Sector to bring together “governments, high-performing non-profits, and private funders in building evidence-based initiatives that address society’s most persistent challenges. As an architect of some of the nation’s most promising Pay for Success projects, it is helping to change …

By Nadia Ahmed On August 28th, Third Sector was invited to the 7th annual Green & Healthy Homes Initiative (GHHI) Executive Leadership Institute in Austin, TX. For the first time, the two-day conference, in addition to its sessions on the latest in the green and healthy housing movement, offered a parallel set of sessions on Pay for Success (PFS). This brought together government, foundations, providers, evaluators, and organizations with PFS expertise to discuss how such an innovative contracting model can work in the lens of healthcare. Third Sector participated in a …

Across the country, a growing number of governments are contracting for human services on a performance basis. Many are implementing innovative cross-sector models like Pay for Success (PFS), with many more considering the model for services in their own communities. This increased appetite for Pay for Success (PFS) partnerships has redirected taxpayer dollars toward interventions that provide data-driven solutions for social impact. Because PFS is well suited to complex social challenges, there are situations where it is unrealistic to expect a single service provider or intervention to address the multifaceted …

On June 30th, the Department of Labor (DOL) released the Final Rule1 on the Workforce Innovation and Opportunity Act (WIOA). As the five workforce boards of Third Sector’s second cohort of Social Innovation Fund sub-grantees are working to leverage the Pay-for-Performance (P4P) provisions of WIOA to better serve youth, this guidance directly informs our efforts. It is also important to note that WIOA requires local areas to shift their focus, spending 75 percent of youth funding on out-of-school youth. The DOL’s Final Rule on WIOA provides the necessary information to …

This month, New Profit, Inc. launched the #AdvanceEquity campaign. The creative campaign seeks to expand equity in America by sparking dialogue and action. It asks a critical question – “how do we change as a nation to reduce inequity?” Third Sector offered one answer to this question by highlighting its second cohort of Social Innovation Fund sub-recipients. With nearly 6 million youth in the United States disconnected from school and work, the time for progress in workforce development is now. Read the #AdvanceEquity Blog Post The impact of these programs …

The field of early childhood education has been exploring how Pay for Success (PFS) can scale programs that work. To guide practitioners interested in the model, Third Sector partnered with the Urban Institute Pay for Success Initiative to create the PFS Early Education Toolkit. With contributions from organizations active in PFS projects across the country, the toolkit’s first three papers – The State of the Science, Using Data to Inform Decision-making, and Outcomes Measurement and Pricing – provide a “roadmap” for those looking to leverage PFS to deliver effective early …

Last month, Third Sector joined over 300 social impact leaders in Denver for The Third Annual Conference of the Early Childhood Social Impact Performance Advisors. Hosted by the Institute for Child Success, ReadyNation, and the Sorenson Impact Center, the three-day conference explored how Pay for Success (PFS) can improve outcomes for children and families. David Wilkinson, Director of the White House Office of Social Innovation and Civic Participation, opened the event by walking through the numerous ways PFS can improve the delivery of early childhood services. By trying interventions on …

Caroline Whistler, President of Third Sector Capital Partners, Inc., was featured by New Profit in the #AFPresidential2016 series. The ongoing blog series highlights the work of over 70 social innovators, presenting their solutions to our country’s most pressing social issues. This post was originally posted on New Profit’s blog. View the post here. In cities across the nation, Third Sector Capital Partners, Inc. (Third Sector) is leveraging Pay for Success to develop performance-based leadership by embedding data-driven decision-making into government contracting, and allowing communities to focus on delivering outcomes versus …

What is the true cost to government of serving, or failing to serve, a family in need? When a government delivers services, what outcomes matter most? How can they be measured when critical information is siloed in various government agencies? And most importantly, where do governments and service providers even start the conversation on data access and analysis? Third Sector and Oregon Health & Science University (OHSU) explored many answers to these questions at the Social Innovation Fund Pay for Success (PFS) Data and Evidence Workshop in Portland, Oregon. The …

On June 6th, Senior Associate Emily Fabiaschi presented on a webinar panel hosted by The National Institute for Health Care Management (NIHCM) Foundation. The webinar, titled “Investing in Children’s Health and the New “Pay for Success” Approach”, provided an overview of Pay for Success contracting and how it can be applied to the field of children’s health. Watch the Full Webinar Here Other panelists included: Rob Dugger, Co-Founder and Chair, Ready Nation Harvey L. Galloway, Executive Director, Blue Cross Blue Shield of South Carolina Foundation Damien Thurman, Director of Social …

Third Sector coordinated a panel session on Pay for Success at the recent Do Good Data Conference hosted by the Impact Lab in Chicago. A standing-room-only crowd came to learn how we can use measured outcomes to bring effective programs to those most in need. Alongside Sarah Jalbert from Abt Associates, Sotun Krouch from Roca, and Eileen Neely of Living Cities, each providing their perspectives on Pay for Success, we were able to fully illustrate the innovative model why it is an effective way for communities to address social issues. …

Last month, Senior Analyst Marcia Chong testified before the Travis County Commissioners Court. Alongside Managing Director Rick Edwards, Marcia presented Third Sector’s work with the Austin/Travis County Health and Human Services Department in assessing the feasibility of a Pay for Success project in teen pregnancy prevention. Third Sector’s work in Austin/Travis County was supported by its Social Innovation Fund grant. Watch the Presentation Here Third Sector is continuing its work in Austin/Travis County through its second cohort of Social Innovation Fund grantees, focused on workforce development. Third Sector will work …

By Joe Gayeski and Mary Beech Pay for Success (PFS) is one way local and state jurisdictions can address pressing social issues in their communities. By integrating data and building rigorous evaluation into government contracting, PFS can reward social services that demonstrate measurable impact. To make this possible, PFS leverages private capital. The model’s innovative cross-sector funding has attracted more attention than any of its other aspects, prompting the question of the role impact investing can play in the public provision of social services. The financing question was well put …

By Priya Shah and Dan Peck In early April, Third Sector was invited to share our approach to performance-based policy at San Francisco State University (SFSU). We shared our expertise in leveraging data to inform social policy to a class of junior and senior sociology students taught by Professor Jason Luger. The highly interactive 90-minute discussion not only combined findings from our data systems work with the sociological theory discussed in their coursework, but also resonated with the students’ own personal, community-based experiences. We commenced the group discussion with a …

This week, Third Sector Capital Partners, Inc. was congratulated by White House staff alongside other Social Innovation Fund grantees for its work in Pay for Success. Third Sector’s Second SIF Cohort adds five feasibilities to the growing number of Pay for Success engagements across the country. “The Obama Administration’s efforts to explore and test PFS are part of our broader effort to capitalize on the dramatic increases in the data and information we have available, and the dramatic improvements in our ability to harness them – and to use these …

By Sithara Kodali Last month, the President signed the Evidence-Based Policymaking Commission Act of 2016 into law. Though the law itself is new, the ideas within it are not. The Act is the latest iteration in national trend towards performance-driven policy and practice, the same movement that is driving the pursuit of Pay for Success (PFS). Below, we highlight some early initiatives in government performance, the progress the field has made, and the lessons earlier policies can teach us today. Introducing Performance to Policy: Federal and Local Initiatives In the …

By Nadia Ahmed and Mary Beech It’s said that marathons are won well before the starting gun goes off. When the runners arrive on race day, the most successful will have put in enough training to know exactly what to expect. When governments pursue a model as innovative as Pay for Success (PFS), pilot programs (“pilots”) function like a runner’s training. Before government and project partners enter into multi-year ‘marathon’ contracts with various financial obligations, pilots play a key role in ensuring the success of PFS projects. Unlike a formal …

Despite the rapidly growing interest in Pay for Success contracting in the United States, little attention has been given to the enabling environment, including regulatory policy. In partnership with Perry Teicher, Impact Finance Fellow at Orrick, Herrington & Sutcliffe LLP, John Grossman and Marcia Chong have compiled a legislative review of state and local legislative initiatives that enable Pay for Success contracting. The review offers policy and legislative recommendations for lawmakers considering PFS legislation. Authorizing Pay for Success Projects: A Legislative Review and Model Pay for Success Legislation READ THE …

By George Overholser Eight years ago, I pitched the Pay for Success concept as a new kind of a money back guarantee. Government would pay for a social service, impact would be rigorously measured, and if impact fell short, government would get its money back. Think of it as impact insurance, or a Social Impact Guarantee – SIG for short. A couple of years later, Social Finance UK came up independently with a different approach. Instead of offering a money back guarantee they invented the Social Impact Bond (or SIB). …