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Pay for Success

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Pay for Success: New Funding Strategy for Your Program

Pay for success (PFS) is an innovative funding model that connects private investors with local governments to support social programs. If the program achieves agreed-upon outcomes, the government repays the investor. If not, the investor takes the loss.

By reducing the government’s financial risk, PFS encourages innovation and investment in programs with a strong evidence base. Although a relatively new strategy (the first PFS project began in 2012), a number of state and local governments are embracing the PFS model to support social innovation.

Treatment courts are well suited for PFS because they have a strong evidence base and existing standards and best practices.

If you are interested in pursuing PFS to implement or expand a treatment court in your community, we stand ready to assist you. Contact NCDC Director Jim Eberspacher to learn more.

Pay for Success Resources

Urban Institute Pay for Success Initiative