outcomes-based financing

Outcomes-based financing is a method where funding is linked to the achievement of specific results rather than just providing resources upfront. For example, a program receives payment only if it successfully improves health, education, or other measurable goals. This approach incentivizes service providers to focus on effective outcomes and ensures that funding is used efficiently, aligning financial rewards with actual impact. It encourages accountability and performance, making sure that projects aim for tangible, meaningful improvements rather than just completing activities.