Pay for Success Federal Grant Opportunity

by | Jul 1, 2014


The Corporation for National and Community Service (CNCS) Social Innovation Fund is accepting proposals for the Pay for Success (PFS) grant.  PFS has a simple, yet fundamental goal: Find what works and make it work for more people.  PFS initiatives currently underway address key issues such as recidivism, workforce development, early childhood education, health interventions and chronic homelessness.

PFS offers a financing solution that changes the way the government allocates and invests its resources, minimizing risk and maximizing return on taxpayer dollars. Basically, the government only pays for demonstrated results. External organizations and investors put up the capital for social services and are reimbursed only if outcomes are achieved.

The PFS grant competition seeks to award nonprofit organizations, city and state governments, or eligible partnerships up to $11.2 million in federal dollars to encourage expansion of the PFS model. Selected grantees will be awarded between $200,000 and $1.8 million per year over 3 years. Every grant dollar must be matched by the grantee with non-federal dollars and in-kind support. Funding priority will be given to applications focused on Youth Development, Economic Opportunity and Healthy Futures.

While PFS is relatively new, several cities and organizations are leading the way:

  • In August 2012, New York City (NYC) implemented the first social impact bond in the United States, which supported the delivery of therapeutic services to incarcerated 16- to 18-year olds and resulted in decreased rates of recidivism. The loan was repaid to investors by the NYC Department of Correction based on the actual cost-savings of recidivism to the city.
  • Similarly, Fresno, CA, launched a project to prove the effectiveness of preventative asthma management in April 2013, focusing on evidence and performance measurement. The program is expected to produce cost-savings and quality of life improvement for children and families, and will pave the way for future PFS opportunities in the healthcare arena.
  • ReadyNation is leading an active effort to develop the research, operational and legal frameworks needed to set up successful early childhood PRFS initiatives and provide advisory assistance.  In June, ReadyNation and the Institute for Child Success hosted a webinar on state and federal legislation on PFS financing methods.

Proposed grant projects should include strategies for PFS capacity building and plans to lay the groundwork infrastructure necessary to implement future PFS projects.  The voluntary letter of intent to apply is due July 15th.  The grant application is due July 31, 2014.  Additional details for the grant application can be found here.

If the federal grant application process seems intimidating or overwhelming, consider these three simple steps to prepare for a successful federal grant and work with a professional grant writer with federal grant experience.  Transform Consulting Group is experienced in submitting successful federal grant applications and is available to work with your organization to navigate the federal grant process.  Contact us today for a free consultation!




Related Articles

Using Data to Tell Your Story

Using Data to Tell Your Story

We say we’re #datanerds at Transform Consulting Group. However, for a communication and marketing person like myself, I will admit that data intimidates me. I prefer using words and emotions to...

read more



Data Informed Tool

Data-Informed Tools

Toolkits address the “why” of data.

Data Informed Tool

Data Dashboard Tools

It is still possible to meet your fundraising goals

Data Informed Tool

Strategic Planning Tools

We’ll work to identify the key stakeholders to inform your planning process.

Data Informed Tool

Evaluation Tools

How effective is your program? Is it working as intended?

Data Informed Tool

Fundraising Tools

With simple, practical tools, your team can diversify funding streams.

Data Informed Tool

Coalition Tools

Is your issue bigger than one organization can handle? A coalition may be the answer!