Third Sector Announces Five Awardees As Part of National Pay for Success Competition Focused on Youth Workforce Development

Awardees will receive technical assistance to develop national models for Pay for Performance contracting in the area of youth workforce development.

Third Sector Capital Partners, Inc. (Third Sector), a grantee of the Social Innovation Fund’s Pay for Success program, recently announced the selection of five awardees to receive federally funded technical assistance to assess the feasibility of implementing Pay for Performance (“P4P”) in the area of youth workforce development. Annually, state and local workforce boards receive over $800 million in federal funding for youth workforce development programs. Third Sector’s goal is to transition these funds into more outcomes-based contracts by positioning awardees as national models for scaling P4P contracting.

The five awardees (“Sub-Recipients”) are:

  • Austin, TX – Workforce Solutions Capital Area will explore how P4P can improve education and employment outcomes for Opportunity Youth through the Back on Track Through College model.
  • Boston, MA – The Economic Development & Industrial Corporation of Boston/Office of Workforce Development will explore how P4P can build upon current achievements in financial literacy and job readiness for youth through its Summer Youth Employment Program.
  • Denver, CO – The Denver Office of Economic Development will explore how P4P can improve outcomes for youth facing workforce barriers such as homelessness, involvement with foster care or justice systems, or disabilities. These include education and employment outcomes and increased self-sufficiency.
  • Northern Virginia – The SkillSource Group, Inc., the nonprofit entity of the Northern Virginia Workforce Development Board, will explore how P4P can improve outcomes in educational attainment, sustainable employment and criminal behavior for youth involved in the foster care and juvenile justice systems.
  • San Diego, CA – The San Diego Workforce Partnership will explore how P4P can improve education, employment, and recidivism outcomes for youth involved in the juvenile justice system, and is willing to stand as a model to other California counties interested in outcomes-based payments in the public sector.

Through the Workforce Innovation and Opportunity Act (WIOA), new funding dollars for PFS are being made available to states. Specifically, WIOA permanently establishes pay-for-performance (a form of PFS) as an eligible use in all three of its funding streams (Adult, Youth, and Dislocated Workers), allowing states to use a portion of their Governors’ Reserve set-aside funds, which are set at 15% of their total formula funds in the coming program year, and authorizing local workforce boards to devote up to 10% of total funds toward pay- for-performance programming. Together, the Sub-Recipients receive over $10 million a year in federal WIOA funding for youth, which they will explore deploying in P4P contracting models.

For more information please contact Celeste Richie,