Through its four Pay-for-Success (PFS) projects and other evidence-based and results-focused initiatives, the Commonwealth uses innovative, public-private financing mechanisms to scale programs and improve outcomes for vulnerable populations.
- This page, Social Innovation Financing, is offered by
- Executive Office for Administration and Finance
Social Innovation Financing
In these projects, investors cover the upfront service delivery costs, and the Commonwealth repays investors only if the initiatives meet desired outcomes. In other words, the Commonwealth pays for demonstrated success rather than the promise of success. This model allows the Commonwealth to clearly articulate goals, gain insight into program efficacy, and drive investments into what works.
In addition to its PFS projects, A&F also supports state agencies through PFS 2.0, which takes the best practices developed in PFS – like active contract management, iterative data analysis to track performance, and evidence-based investments – and deploys those tactics in core, line-item spending without private investment. The PFS 2.0 approach has the potential to reorient millions of dollars of social service spending toward securing measurable improvements for Massachusetts residents.