Pay for Success Gains Momentum
This month we are seeing major moves in Pay for Success initiatives on the federal and state levels, along with a newly released toolkit to help build nonprofit capacity for Pay for Success models.
What is Pay for Success (PFS)?
PFS is results oriented funding. Funders cover the upfront costs and the government pays the money back, only after the agreed upon results are achieved. An independent evaluator typically determines if the agreed upon results were achieved.
PFS has been a focus of the Obama administration’s social innovation platform. PFS made headlines last week when the U.S. Department of Education announced its first-ever awards supporting PFS strategies.
- Social Finance and Jobs for the Future will pilot or expand effective continuing education solutions for at-risk youth through PFS.
- American Institute for Research will perform a PFS feasibility study focused on serving K-3 dual language learners.
The state of Michigan has also been working on its own PFS initiative. Earlier this month Governor Rick Snyder announced the Kent County-based program, Strong Beginnings, will pilot Michigan’s Pay for Success program. Strong Beginnings promotes breastfeeding, safe sleep practices and parenting skills. In the past decade the program has helped to reduce infant deaths and adverse birth outcomes by 50 percent for African Americans in Kent County. The hope is the program will continue to see such results and could potentially expand outside of Kent County.
For funders interested in engaging in PFS and helping nonprofits enter this arena, Social Finance released a new report, "New Tools to Amplify Impact: A Pay for Success Guide to Building Nonprofit Capacity," supported by CMF member the W.K. Kellogg Foundation. The report provides guidance for funders as they explore PFS, sharing the importance of quality data and evaluation as well as the critical roles nonprofits, government and funders must play.
Report’s recommendations for funders:
- Give nonprofits support to meet the demands of PFS (more evidence building, more data and a greater focus on outcomes)
- Support grantees with bigger, more concentrated grants to do better research and build the strategic infrastructure to deliver and measure high-quality results
- Help to enhance the ability to collect, share, and analyze data in order to drive decision-making
The report states, “Results matter. By paying for them, we can encourage and expand programs that work and move closer to breaking cycles of intergenerational poverty.”
Hurricane Highlights Need for Philanthropy Disaster Prep
It’s been almost two weeks since Hurricane Matthew made landfall in Haiti, resulting in the deaths of 1,000 Haitians from the storm and storm-related cholera spread. In the U.S. nearly 40 people were killed, and last week rescue efforts were still underway in parts of North Carolina due to extreme flooding.
The American Red Cross sent many Michiganders South to help in the response effort to Hurricane Matthew, and Consumers Energy had workers on standby to offer support to utility crews as part of a national mutual aid pact. We know disasters of this magnitude have nonprofits responding in full force, but where should we be focusing efforts and how do we prepare now for future disasters?
CMF joined a webinar hosted by the Center for Disaster Philanthropy (CDP) about Hurricane Matthew and the response. Experts from organizations on the ground in Haiti, along with CDP shared takeaways for funders, including the importance of thinking long term when it comes to disasters.
“There’s a lot of pressure on organizations to respond and announce what they’re going to do in the first week,” Joe Ruiz, director of the UPS Foundation’s Humanitarian Relief Program said. Ruiz said more organizations, including corporate donors, should look at the scope of the disaster and instead announce they are reserving money for long term needs and share details at a later date.
Ruiz and others stressed that following a disaster, needs and gaps are still being assessed.
To help with response and preparation efforts the CDP created the Disaster Philanthropy Playbook, an online collection of strategies, collaboration, impact stories and resources that allows you to explore innovative approaches and key takeaways for your organization before a disaster occurs.
When it comes to immediate relief and support the playbook shares ways your organization can prepare now.
- Fund programs that educate families on how to develop their own disaster plan
- Bolster funding of food banks, homeless shelters and programs that will be on the front lines during a disaster
- Research a core group of organizations that you would grant to immediately following a disaster
- Consider funding mapping and apps that connect first responders and NGOs for more efficient response
The playbook notes it’s important for grantmakers and nonprofits to know how the disaster response system works and have plans in place before disaster strikes because the effects could be felt by a community for months or even years.
As for recovery for those affected by Hurricane Matthew, Regine Webster, vice president for the Center for Disaster Philanthropy, said medium and long term needs include services and support for public health, mental health, food security, shelter and small businesses.
“This is not a disaster domestically or internationally that will go away in a week, it will take years to recover from this type of a disaster,” Webster said.
Webster presented in one of two sessions focused on disaster philanthropy at CMF's Annual Conference in September. Click here to view session materials from Webster's session, Disaster Hits. Are You Ready?
Check out the Disaster Philanthropy Playbook in order to ensure that your foundation is prepared.
Human Trafficking: Michigan's Hidden Industry
It’s deplorable, it’s exploiting our youth and it’s happening in our Michigan communities. Our state ranks as one of the worst in the country for human trafficking prevalence, second only to Nevada. Why Michigan?
Our state sits on the busiest international crossing with Canada, “helping make the exploitation of vulnerable persons in this state a lucrative business,” writes a columnist from St. Clair. Just cross our state border and you’re in Toledo, one of the top ranked cities in the nation for trafficking. There have been cases of minors trafficked to Michigan truck stops and then to hotels in Toledo.
The numbers are stunning. Last year alone the FBI worked 220 cases in the state. U.S. Immigration and Customs Enforcement (ICE) investigators said they have seen an increase in cases throughout Michigan.
The National Human Trafficking Resource Center (NHTRC) tracks the number of human trafficking cases that are reported every year through the national hotline.
- During the first half of 2016 (as of June) the NHTRC received reports of 133 cases of human trafficking in Michigan
- 2015: 152 cases
- 2014: 131 cases
- 2013: 118 cases
- 2012: 69 cases
According to the Polaris Project, a national nonprofit that operates a textline and the NHTRC national hotline for victims, the top Michigan cities with the most calls to the NHTRC include:
- Grand Rapids
- Ann Arbor
- Mackinac Island
What’s being done in MI?
The first ever statewide conference on human trafficking took place in Ann Arbor last month, focusing on legislation, increasing awareness and ways to eliminate the growing problem. Legislative efforts continue to try and stop the sex trade in Michigan. A bill just passed committee in Lansing making it a felony to engage or promote the sale of sex tourism in Michigan, and it’s now headed to the full House for consideration. Last year Governor Rick Snyder appointed a dozen people to the Michigan Human Trafficking Commission, aiming to work with law enforcement and local agencies to find ways to reduce human trafficking and connect victims with much-needed services.
A growing number of nonprofits are involved in this work around the state through programming and task forces. Hope Against Trafficking offers a first-of-its-kind program in Southeast Michigan. The program supplies two years of rent-free housing and services for Michigan women who are survivors of sex trafficking, focusing on their physical, mental and economic well-being.
There are also many programs in place for youth, geared at both helping survivors and keeping runaways safe from the sex trade:
- The Manasseh Project, an initiative by Grand Rapids-based nonprofit Wedgewood Christian Services, provides support and residential treatment services for victims of sex trafficking.
- HQ in Grand Rapids is a nonprofit that serves as a drop-in youth center for homeless teens, giving them a safe space, meals, internet and laundry access.
- Alternatives for Girls in Detroit offers many services for runaways and homeless youth, including an outreach program that works with girls and women who are trying to escape trafficking.
- Vista Maria, that receives support from the DeRoy Testamentary Foundation, supports young women who are victims of human trafficking
For funders who want to tackle this issue, there are nonprofits and task forces around the state working to end Michigan’s sex trade. You can connect with other CMF members working in this area through the Michigan Grantmakers for Women and Girls affinity group. Please contact Karista Gallick to learn more.
New Dequindre Cut performance space opens thanks to McGregor Fund gift
The Campbell Memorial Terrace, a new outdoor performance space along Detroit’s Dequindre Cut Greenway officially opened to the public Thursday. The covered stage and seating was made possible thanks to a $1 million gift from the McGregor Fund to the Detroit Riverfront Conservancy.
The terrace was named after the late David Campbell, former president of the McGregor Fund, a founding member of the conservancy’s board and a former trustee and board chair of the Council of Michigan Foundations (CMF).
"David Campbell loved Detroit, so it’s an honor to remember him with this beautiful space," Mark Wallace, president and CEO of the Detroit Riverfront Conservancy said. "He also loved art, music and dance. The Campbell Memorial Terrace will be great for intimate performances, and I’m sure kids who encounter it on their way to the riverfront will enjoy putting on their own impromptu shows."