Readiness and Capacity-Building Toolkit for Pay for Success Investments

The Pay for Success (PFS) model is a relatively new way to finance improvements in persistent social problems. PFS brings together investors with local, state, and federal government agencies to fund and improve education, health, and social services. A major challenge in the growth of the PFS model is effective assessment of provider capacity.

For the Kresge Foundation, AIR is creating an organizational readiness toolkit, which is informed by a synthesis of the current literature on PFS and implementation science, as well as interviews with leading intermediary organizations and their community partners.

The toolkit has the potential to expand the array of government and nonprofit organizations leading PFS projects and provide data to guide the investment decisions of public and private stakeholders. Readiness and accompanying capacity enhancement plans can attract capital in states, counties, and communities, as levels of financial risk are better understood and funders are assured of capacity needed to provide effective programs, especially in lower resourced communities. AIR’s partner is Third Sector Capital Partners, a nonprofit organization focused on PFS projects.