Third Sector Capital Partners, Inc. to provide Year Up with federally funded technical assistance to accelerate exploration of implementing Pay for Success
Boston, MA, March 12, 2015 – Based on the efficacy and scalability of its innovative approach, the nonprofit Year Up has been selected as part of a national competition to assess the feasibility of implementing Pay for Success to improve employment outcomes for urban young adults. Third Sector Capital Partners, Inc. (Third Sector), the organization that ran the competition, will provide Year Up, and six other awardees, federally funded technical assistance throughout 2015. Third Sector’s work with Year Up is supported by a grant from the Corporation for National and Community Service’s Social Innovation Fund.
Pay for Success (PFS) is an innovative funding model that enables government to draw in greater resources to tackle social problems by tapping private investments for the upfront costs of the programs. If the program is successful in delivering services that measurably improve the lives of people it is meant to serve, then government repays those who made the original investment. If the program does not achieve its target results, government does not repay those who made the original investment. This ensures that taxpayer dollars are being spent only on programs that actually work.
Year Up was selected for its demonstrated commitment to providing high-quality, effective social interventions. More than eighty-five percent of Year Up graduates are employed or attending college within four months of completing the intensive one-year program, with average starting salaries of more than $30,000. Launched in Boston in 2000, Year Up will serve more than 2,700 young adults in 14 cities across the United States this year.
Year Up will receive assistance from Third Sector to explore using PFS in advancing new Professional Training Corps (PTC) sites. Year Up currently has PTC sites in Arizona, Baltimore, Jacksonville, the National Capital Region and South Florida in partnership with local community colleges. PTC students (young adults ages 18-24) spend six months learning technical and professional skills on campus and then participate in a six-month, credit-bearing internship at one of Year Up’s 250 employer partners. Students can then complete their Associate’s Degree the following year.
“We’re excited to work with Third Sector in exploring how Pay for Success can support Year Up in scaling its proven approach, providing a pathway to employment and higher education to more young adults while supplying a pipeline of talent to top businesses,” said Gerald Chertavian, Year Up Founder and CEO. “Pay for Success can measurably improve employment outcomes for disconnected youth while increasing government accountability.”
Third Sector, a grantee of the Social Innovation Fund’s Pay for Success program, announced the selection of Year Up along with six other awardees (called “sub-recipients”) after a highly selective national competition. The other Sub-Recipients include: Austin/Travis County, TX; Bridges Network and Orange County, CA; Commonwealth of Virginia; State of Nevada in partnership with Clark County, NV and Las Vegas, NV; State of Oregon, Marion and Multnomah Counties, OR, and Friends of the Children; and State of Washington and Thrive Washington.
“We are honored to work with Year Up to measurably improve the lives of disconnected young adults,” said Third Sector CEO and Co-Founder George Overholser. “Support from the Social Innovation Fund will allow Third Sector to lead a diverse cohort of governments and nonprofits in accelerating their exploration of implementing Pay for Success in the areas of early childhood and youth development.”
In 2014, Third Sector received $1.9 million from the Social Innovation Fund (SIF), a program of the Corporation for National and Community Service (CNCS), to help strengthen the pipeline of state and local governments and service providers prepared to implement PFS projects. SIF uses federal funding as a catalyst for private and public collaborations in three areas: economic opportunity, healthy futures, and youth development. To deliver the technical assistance, Third Sector is partnering with Abt Associates, America Forward, National Association of Counties, National League of Cities, and National Governor’s Association.
Seven PFS programs in the fields of juvenile justice, early childhood education, homelessness prevention and recidivism have been launched in the United States, including Chicago, IL; New York City, NY; Salt Lake City, UT; Cuyahoga County, OH; Massachusetts (two projects); and New York.
About Third Sector Capital Partners, Inc.
Third Sector is a 501(c)3 nonprofit whose mission is to accelerate America’s transition to a performance-driven social sector. Third Sector is making Pay for Success a reality in the United States. Third Sector leads governments, high-performing nonprofits, and funders in building collaborative initiatives that re-write the book on how governments contract social services, by funding programs that work, saving taxpayer dollars, and measurably improving the lives of people most in need. Third Sector is a recipient of the Corporation for National and Community Service’s Social Innovation Fund. Learn more at nationalservice.gov/sif.
About the Corporation for National and Community Service
The Corporation for National and Community Service is a federal agency that engages more than five million Americans in service through its AmeriCorps, Senior Corps, Social Innovation Fund, and Volunteer Generation Fund programs, and leads the President’s national call to service initiative, United We Serve. For more information, visit NationalService.gov.
About Year Up Inc.
Year Up’s mission is to close the Opportunity Divide by providing urban young adults with the skills, experience, and support that will empower them to reach their potential through professional careers and higher education. Year Up achieves this mission through a high support, high expectation model that combines marketable job skills, stipends, internships and college credits. Its holistic approach focuses on students’ professional and personal development to place these young adults on a viable path to economic self-sufficiency. Year Up currently serves more than 2,100 students a year at sites in Arizona, Atlanta, Baltimore, Boston, Chicago, Jacksonville, the National Capital Region, New York City, Philadelphia, Providence, Puget Sound, San Francisco Bay Area, and South Florida. To learn more, visit www.yearup.org or www.youtube.com/yearupinc.