Salt Lake County, UT — Mayor Ben McAdams said he’s pleased that the county has selected The Community Foundation of Utah—through a competitive process—to partner with the county and its consultant, Third Sector Capital Partners, Inc. in building upcoming Pay for Success projects. The Community Foundation of Utah is a nonprofit entity that is tax exempt under section 501(c)(3) of the Internal Revenue code.
McAdams said that the Foundation was chosen for the role of financial and legal intermediary. He said that Pay for Success contracting is a new form of government social service procurement that is based on the county agreeing to reimburse funders for a desired outcome, rather than utilizing a traditional fee-for-service arrangement. It is an innovative way for the county to deliver needed services to more individuals more quickly, through programs that have measurable results. He said that a Pay for Success project includes five key partners: government, service provider(s), an independent evaluator, funders and an intermediary. He said the intermediary has an important legal and financial responsibility to the partnership.
“We’re happy to be working with The Community Foundation of Utah on our upcoming portfolio of Pay for Success projects,” said McAdams. “The intermediary fills a critical role in the financial structure. The funders who agree to pay up front for service delivery send their money to the intermediary, who disburses it to the service providers. Once the evaluation is completed—and evidence shows that outcomes were achieved—the intermediary repays the funders.”
McAdams said the county recently announced three Pay for Success projects that will be launched in the coming months. The project areas are maternal and child health, enhancing community safety through reducing recidivism and reducing homelessness.
More information about the Mayor’s Pay for Success initiative can be found here. More information about The Community Foundation of Utah can be found on their website: www.utahcf.org
