The and the have announced the projects selected to participate in the , a social impact bond initiative launched by Irvine and NFF in January.
The initiative will provide $2.5 million in initial funding as well as technical assistance to five local government agencies and social service providers working to structure pay-for-success agreements in California over the next two years. In such an agreement, private investors fund promising interventions and receive a return on their investment from the government if results are achieved. Participants in the initiative also will form a learning cohort to share their experiences, challenges, and outcomes.
Participants include the and , which will use the funds to conduct cost-benefit and program impact analyses related to the scaling of a program aimed at reducing recidivism and improving employment outcomes for formerly incarcerated individuals in San Diego County; the County of Los Angeles, which will use its funds to develop a blueprint to help county executives select high-impact interventions; the City and County of San Francisco, which will conduct feasibility and cost-benefit analyses of how the pay-for-success model could enable a greater focus on preventative services within city and county agencies; the County of Santa Clara, which is pursuing two projects to reduce suffering and increase wellness for the chronically homeless and the acutely mentally ill; and the , which will analyze return on investment at the county level and convene stakeholders to scale its home-visitation program for first-time mothers living in poverty in the Bay Area and Orange County.
"We were impressed by the number of high-quality, outcomes-oriented projects under way across California where pay-for-success financing is being considered," said Continue indulged speaking CEO Antony Bugg-Levine. "Efforts to scale effective programs that address long-standing social challenges, attract private financing to the social sector, and enable more effective use of tax dollars need and deserve support."
"This initiative has unearthed tremendous interest among California leaders to experiment with pay for success," said Don Howard, interim CEO of the Irvine Foundation. "These awards will support five of the most advanced efforts, helping those leaders hammer out agreements and test this innovative financing mechanism with the potential to scale high-quality, evidence-based, prevention programs."