From Evidence to Outcomes: Using Evidence to Inform Pay for Success Project Design

The public and private sectors are showing tremendous interest in a new financial mechanism called pay for success, or PFS. At the heart of all PFS projects is testing whether a social program can improve outcomes for a specific group of people. If the program works—as measured by a rigorous evaluation—the project is a success. Investors get their money back (with a potential positive return), the government realizes cost savings, families and society benefit from better outcomes, and social service providers strengthen the case for funding their model.