Pay for Success (PFS)

Pay for Success (PFS) is a financing model designed to fund social programs based on their outcomes. In this approach, private investors provide upfront capital to implement social services, such as job training or healthcare initiatives. The government or a designated entity then repays these investors only if the program achieves specific, measurable results, such as reducing homelessness or improving health. This model shifts the financial risk from taxpayers to investors and encourages innovation and accountability in social programs, ensuring that funds are used effectively to produce real, positive impacts in communities.