PAY FOR SUCCESS COMES TO AUSTIN
In March 2015, Austin/Travis County was selected as part of a national competition to assess the feasibility of implementing a “Pay for Success” initiative to reduce teen pregnancies among Hispanic youth and to improve birth outcomes among African Americans.
Mission Capital and Partners Assess Feasibility of Pay for Success in Austin
Pay for Success (PFS) is an innovative funding model that seeks to measurably improve the lives of people most in need by driving resources toward highly-effective programs. The PFS model enables communities to access greater resources by tapping private investments for the upfront costs of the programs. If the programs are successful, then government repays those who made the original investment. This ensures that taxpayer dollars are being spent only on social programs that deliver measurable results.
In March 2015, Austin/Travis County won federal funding to explore innovative Pay for Success financing models in our community.
This win shines a national light on Austin’s social sector and is exciting for many reasons:
- Pay for Success models show great promise as a way to bring new forms of investment to proven nonprofit programs.
- Austin was selected for demonstrated commitment to funding high-quality, effective social programs that produce measurable outcomes.
- Our research on Austin’s nonprofit sector revealed that solving complex social problems takes cross-sector collaboration and greater investments in high-performing organizations – this grant is a perfect example of both.
Mission Capital, along with our partners at Austin/Travis County Health and Human Services, Travis County, Central Health and United Way for Greater Austin, led the efforts to secure this award that will assess the feasibility of Pay for Success models in reducing teen pregnancy and improving outcomes for low-income African-American women in our community.
Social innovation and alternative financing options like this align with our vision to see our community’s most complex social issues get solved. In addition to promoting innovative funding options for mission-driven organizations, our Social Venture Partners and Accelerator program provide access to human, financial and intellectual capital to advance creative solutions to big community challenges.
Austin receives federally-funded support to explore innovative funding model.
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