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What are the benefits of pay for success?

Last Updated: Aug 02, 2016 06:38PM UTC

Pay for Success has eight primary potential benefits:

  • raises up-front funding for proven, model, promising, and potential social service programs
  • shifts the risk of innovating or scaling social services to private or nonprofit investors
  • emphasizes government investment in outcomes over other priorities
  • encourages adoption of evidence-based solutions to serve the public interest
  • addresses the time lag problem where, in many cases, investments in social programs must occur long before the social and economic benefits accrue from these programs
  • overcomes barriers where the government agency tasked with funding a program is not the primary beneficiary.
  • focuses on preventive programs that maximize public benefits over budget costs
  • conserves resources that can then be used for other investments in the public’s interest. 



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