Social Finance and Jobs for the Future (JFF) have selected the awardees of the first Pay for Success competition in K-12 education. The sites are: South Bay Community Services in California, NAF in New York, Mahoning County Educational Services Center in Ohio, and Pharr-San Juan-Alamo Independent School District in Texas. Funded through a grant from the U.S. Department of Education, JFF and Social Finance will support the sites in exploring how to use the Pay for Success model to develop and expand career and technical education (CTE) programs for underserved, high-need youth. The projects will create and scale effective programs that improve young people’s access to postsecondary education and employment opportunities.
View the Press Release
Read Forging a New Path: Using Pay for Success to Build Career Pathways for Underserved, High-Need Youth, a blog authored by Anna Fogel, Social Finance's director of advisory services
Read about the PFS projects in Ed Week
Follow us on Twitter at hashtag #PFS4CTE
How will Pay for Success Make a Difference for your CTE Program?
How do Pay for Success Projects Work?
This grant will cover the upfront costs of assessing the feasibility of, and developing, Pay for Success projects in each of the sites. Social Finance and Jobs for the Future will provide technical assistance to each site to assess the feasibility of using Pay for Success in their jurisdiction, and will work with up to three sites to then structure a Pay for Success project. In terms of timing, each feasibility study will last for six months and project development can take up to 12 months following feasibility.
The goal of this 18-month feasibility and project design phase, funded by the grant, is to design Pay for Success projects. During the project design phase, Social Finance will raise private capital to cover the cost of scaling CTE services for underserved, high-need youth. Pay for Success projects generally provide multiple years of services and measurement of outcomes, often lasting between four and six years with service budgets of approximately $10 to $20 million. Social Finance and Jobs for the Future will work with each site to structure a project timeline and budget that meets their local requirements.
Social Finance and JFF hosted a webinar about about the Pay for Success competition and application process on January 27, 2017. View a recording of the webinar below.
- Request for Proposals
- Frequently Asked Questions (FAQs)
- Sample Applicant Structures
- Informational Webinar Slides
- Press Release: Competition Announcement