Pay for Success: A New Approach to Funding Social Welfare Programs
Event Summary
AEI’s Katharine B. Stevens convened a group of experts on Tuesday to discuss the challenges and promises of the Pay for Success (PFS) model, an innovative funding stream also known as Social Impact Bonds. With only eight current projects in the US, PFS is a relatively new financial venture that aims to bring together public and private partnerships in an effort to address the nation’s biggest social problems.
During the event, Rep. John Delaney (D-MD) and Rep. Todd Young (R-IN), authors of the Social Impact Partnership, spoke about why they believe PFS is an effective strategy to increase opportunities for America’s neediest citizens and reform the way the government spends and directs resources. A subsequent panel discussed how the PFS model’s reliance on evidence as a requirement for future program funding represents a sharp departure from the way the government currently operates. Under PFS, only programs that produce proven, measurable outcomes can continue to receive funds.
Although the implementation of PFS presents many challenges, as Save the Children’s Mark Shriver noted, it offers an innovative way forward in encouraging innovation into America’s war on poverty.
Event Description
Despite decades of effort and trillions in social spending, the economic and social well-being of America’s neediest citizens has not improved. Pay for Success (PFS), also known as social impact bonds, is an innovative funding tool that drives government resources toward effective, results-based social programs.
Join AEI and Save the Children for a panel discussion on how the PFS model can drive more effective social spending in crucial policy areas, such as early childhood, foster care, homelessness, employment, and criminal justice. The event will feature remarks by Rep. John Delaney (D-MD) and Rep. Todd Young (R-IN) — authors of the Social Impact Partnership Act — and closing remarks by Save the Children’s Mark Shriver on the promising outlook of PFS for early childhood.
Event Materials
AGENDA
8:45 AM
Registration and breakfast
9:00 AM
Introduction:
Arthur C. Brooks, AEI
Remarks:
John Delaney, US House of Representatives (D-MD)
Todd Young, US House of Representatives (R-IN)
Q&A
9:35 AM
Panel discussion
Panelists:
Jon Baron, Laura and John Arnold Foundation
Jeremy Keele, Policy Innovation Lab, University of Utah
George Overholser, Third Sector Capital Partners
Tracy Palandjian, Social Finance US
Moderator:
Katharine B. Stevens, AEI
10:40 AM
Q&A
10:50 AM
Closing remarks:
Mark Shriver, Save the Children
11:00 AM
Adjournment
See Also
Op-Ed ~ February 4, 2016
Op-Ed ~ July 14, 2015
Op-Ed ~ December 9, 2015