A few weeks ago, the World Bank launched the Pandemic Emergency Financing Facility” (PEF).[1] It is an exciting example of social financing supporting outcomes at scale. Here’s how it works. It has raised $425m via bonds and swaps. If no pandemic occurs, investors will be repaid their principal in full, plus a return. If a pandemic occurs, then investor principal will be instead used to quickly respond to the crisis. In short, the PEF functions as a kind of insurance that kicks in in the event of a bad outcome. …

This article originally appeared on the Living Cities’ blog as a part of their new series which celebrates the five year anniversary of their first PFS project, and shares reflections from them and their partners on new directions in PFS. For updates, follow their Pay for Success Newsletter. Nearly one in every seven youth and young adults across the United States are neither employed nor in school. Nationwide, this amounts to approximately six million disconnected or “opportunity youth” who face barriers to employment, including limited community resources, low-performing schools, and inadequate assistance …

Check out our submission to the American Evaluation Association’s Evaluation 2017 Video Contest! Share using this link: https://youtu.be/eg3vnwaq3EE http://www.thirdsectorcap.org/wp-content/uploads/2017/06/TSCP-Eval-2017-V1-Full-Music-50MB.mp4

For the past five months, I’ve been helping Third Sector research the nascent field of social impact accounting – the practice of measuring and quantifying the social impact of organizations and investments.  Third Sector was interested in exploring the demand for social impact accounting among investors and philanthropic organizations, as well as investigating opportunities to apply the lessons the firm has learned from its Pay for Success work more broadly. While generalized social impact accounting principles are accepted and widely used today, they are a relatively recent development: The Financial …

This post originally appeared on the AEA365 blog as part of their SIM TIG Week. Hello! We are Brian Beachkofski and Jeannie Friedman, Pay for Success (PFS) advisors at Third Sector Capital Partners. We spend most of our time assessing feasibility and designing social sector programs with rigorous evaluations and evidence-based interventions embedded into their contracting structure. PFS is an innovative contracting model (shown in the figure below) that drives government resources toward high-performing social programs. The PFS model is designed to merge performance measurement using administrative data and rigorous …

The prevalence of data in the social sector means that government agencies and nonprofit providers, in theory, have a wealth of information at their disposal to understand what works and more effectively deploy resources to achieve better outcomes. Administrative data (data collected by governments or nonprofits as part of administering a specific program) in particular provides a cost-effective and accurate way to understand participant outcomes and break the silos between agencies serving similar populations who operate in different policy domains. The practical reality is that providers and government agencies cannot …

This article originally appeared on America Forward’s blog as a part of their Evidence in Action series. Follow along on Twitter with #EvidenceinAction and catch up on the series here. Thanks to the persistence of social entrepreneurs across the country, every day we see strategies that are working and delivering results in a rapidly changing world. This Evidence in Action blog series highlights the voices of the more than 70 social innovation organizations that make up the America Forward Coalition, the results-driven solutions our community has for our country’s most pressing …

Social impact is a dynamic and growing field, with many different types of actors who each have unique strategies and goals. The Wharton Social Impact Conference, hosted by the Wharton Social Impact Initiative, brought together leaders in the space to discuss their approaches, emphasizing innovative tools and models.  While social impact crosses fields, many practitioners are thinking about common themes, directly related to our work at Third Sector. As we bring together stakeholders to orient social services towards outcomes, we often think about how to best leverage data, the long-term …

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 …

Third Sector Capital Partners and the Stanford Center on Poverty and Inequality will provide assistance in evaluating social programs that address homelessness, unemployment, and family disadvantage. ­ The Stanford Center on Poverty and Inequality and Third Sector Capital Partners have joined with three state and local governments to develop a new big-data infrastructure for evaluating programs that aim to increase economic opportunity. The San Diego County Health and Human Services Agency, the Santa Cruz Human Services Department, and the Washington Department of Early Learning will receive research and development support …

Brian Beachkofski leads Third Sector’s efforts in data, evaluation, and modeling to include developing and executing strategy, capturing best practices, and providing training. This post is based off a recent speech I made at the Harvard University Center on Education Policy Research for a meeting of the Proving Ground partners. Proving Ground is an initiative committed to helping education agencies meet their practical needs, by making evidence cheaper, faster, and easier to use. Their goal is to make evidence-gathering and evidence-use an intuitive part of how education agencies conduct their …

Brian Beachkofski leads Third Sector’s efforts in data, evaluation, and modeling to include developing and executing strategy, capturing best practices, and providing training. This post is based off a recent speech I made at the Harvard University Center on Education Policy Research for a meeting of the Proving Ground partners. Proving Ground is an initiative committed to helping education agencies meet their practical needs, by making evidence cheaper, faster, and easier to use. Their goal is to make evidence-gathering and evidence-use an intuitive part of how education agencies conduct their …

Brian Beachkofski leads Third Sector’s efforts in data, evaluation, and modeling to include developing and executing strategy, capturing best practices, and providing training. This post is based off a recent speech I made at the Harvard University Center on Education Policy Research for a meeting of the Proving Ground partners. Proving Ground is an initiative committed to helping education agencies meet their practical needs, by making evidence cheaper, faster, and easier to use. Their goal is to make evidence-gathering and evidence-use an intuitive part of how education agencies conduct their …

The Pay for Success (PFS) movement has spread to countries around the world. Each country has done PFS for slightly different reasons. For example: in the United Kingdom, PFS has generally angled as a way to get ‘more for less’, whereas in the US, PFS has been viewed by many as a way to test and scale up innovative social programs. I grew up in Singapore and Hong Kong, and have spent the past two years executing PFS projects around the US.  I believe that PFS could provide a unique …

Third Sector Capital Partners, Inc. (Third Sector) Board of Directors formally announced today new roles for co-founders Caroline Whistler and George Overholser. Beginning March 15, 2017, Caroline Whistler will be promoted to President and Chief Executive Officer (CEO), and George Overholser will transition from his current role as CEO to Board Chair. Whistler and Overholser, along with Third Sector board member Drew von Glahn, established the organization in 2011 to accelerate America’s transition to a performance-driven social sector. As leading innovators and implementers in the field of outcomes-based social policy, …

Rauner Administration Moves to Improve Outcomes for Dually-Involved Youth  Pay for Success initiative aims to reduce stays in institutional care, prevent repeat criminal behavior CHICAGO – Governor Bruce Rauner and Illinois Department of Children and Family Services (DCFS) Director George Sheldon today announced the next step to improving outcomes for youth who are involved in both the child welfare and juvenile justice systems through a first-of-its-kind pay for success initiative. “Many youth in the juvenile justice system have endured a breakdown in their families,” said Governor Rauner. “This project is …

By Celeste Richie Along with other critical support services, the Workforce Innovation and Opportunity Act (WIOA) and its embedded Pay-for-Performance (P4P) provisions are critical to advancing performance-based contracting and improving long-term outcomes for those served by the workforce system. Despite the appetite for a better life for all individuals, many workforce programs today are unable to deliver similar high-quality results across all of their participants. Recent analysis has demonstrated the need to increase equity of outcomes, not just increased access to services, and WIOA P4P could be an active tool …

Largest federal Pay for Success Round 2 grant will establish “Performance Hubs” and tools for communities to embed data analytics into service delivery programs for child welfare, homelessness, and juvenile justice services. Third Sector is pleased to announce that it has received a $2.4 million federal grant from the Social Innovation Fund, a program of the Corporation for National and Community Service, to create a tech-enabled ecosystem of high-quality data for service providers and develop the pipeline of “Pay for Success (PFS)-ready” governments. The project is also funded by a …

White House Features New Social Innovation Award The Stanford Center on Poverty and Inequality launched today a new $3 million partnership with Third Sector Capital Partners, the Social Innovation Fund, the Ballmer Group, and the White House Office of Social Innovation to build an administrative-data framework for measuring and evaluating the success of social service programs designed to reduce poverty and inequality. A $1.5 million grant was awarded by the Social Innovation Fund (SIF), a program of the Corporation for National and Community Service, after a rigorous nationwide competition. The …

By Nadia Ahmed and Melissa Penney From September 7th to 9th, Third Sector joined other grantees for the Social Innovation Fund (SIF) Convening hosted by the Corporation for National & Community Service in Washington, DC. The event gathered government leaders, funders, service providers, and consultants to share their successes and lessons learned in implementing and expanding evidence-based services. The theme of this year’s convening was Risk, Agility, and Resilience, reflected in the many conference sessions on field disruption, course correction, and scaling change. Throughout the convening, themes of equity and …