Brief

Managing Investors’ Risk in Pay for Success Projects

Pay for success (PFS) projects offer governments opportunities to invest in outcomes and employ new capital to meet the needs of their communities. But PFS projects also carry risks. For investors, the risks relate to the project failing to meet its outcomes or the government reneging on its commitment to pay. Investors’ perceptions of risk matter. Projects with high or unclear risk may discourage investors and prevent the project from launching.

Brief

Measuring Success in Pay for Success: Randomized Controlled Trials as the Starting Point

Evaluations are a key feature of pay for success (PFS) projects, and rigorous evaluation designs are important for building the evidence base of effective programs by determining whether a project’s outcomes can be attributed to the program. Randomized controlled trials (RCTs) are considered the most rigorous evaluation design and give us the best approximation for what would have happened without the program. However, PFS stakeholders often don’t know about RCTs or consider them too expensive, difficult, or controversial.

Brief

PFS + ECE: Using Data to Inform Decisionmaking

Data play an integral role in pay for success (PFS) projects. Knowing the kinds of data needed for a successful project, how to collect them, and how they should be used may seem straightforward. But the complexity of early childhood outcome measures and data systems can create challenges.  

Brief

PFS + ECE: Outcomes Measurement and Pricing

Setting and pricing outcomes are important steps of every pay for success (PFS) project because they allow partners to quantify the benefits of successful programs. This report describe the types of early childhood education (ECE) outcomes that might be used to establish repayments and offers guidance on how the partners in a PFS project might select an outcome, a measure, and a definition of success that is appropriate for the project. We also outline approaches to assigning dollar values to selected outcome measures.