Our approach provides a platform for governments, donors, service providers, and impact investors to work together to support long-term, systemic impact. Ultimately, we aim to drive better learning and employment outcomes for children across the world, and to ensure that taxpayer-funded domestic resources, international aid, and philanthropic funds are only used to pay for interventions that work.
Why Pay for Outcomes
In a recent review of 71 education interventions worldwide, only half were found to have had any impact on learning outcomes at all (Source). Of those that did, the 20% most cost-effective interventions had a 9x greater impact on learning per dollar spent than the median intervention.
Outcomes funding can help address these problems by putting impact evaluation at the heart of education programs. With more and better data, we can monitor the performance of our interventions, course correct, and disseminate our findings, with more accuracy and greater speed. This is essential to ensure that we can begin to bridge the global financing gap to achieve SDG4.
Delivering better outcomes and better value
An iterative, systematic approach to improving outcomes, through annual performance evaluations.
Rewarding education organizations and investors for longer-term investments, supporting a more structured focus on strengthening systems.
Working with governments to help identify what works and how successes can be scaled.
LONG-TERM, SYSTEMIC CHANGE
Each actor has an important role to play in our partnership model.
Beneficiaries (children and youth) are at the heart of all EOF programs, with outcomes objectives being set based on their needs.
Governments are close partners throughout the entire program, from making critical design decisions (with EOF's support), to regulating and overseeing interventions, to co-funding the outcomes once they are achieved.
Service providers work to improve outcomes, with active performance management and adaptation to the local context. Through the partnership, they are empowered to innovate based on the needs of students, instead of being constrained by rigid contracting and budgeting cycles.
Where appropriate, impact investors provide upfront finance through an 'impact bond' to support program improvements, and to help to shoulder the financial risk that the program may not deliver on its expected results.
Outcomes funders pay for outcomes after they are achieved – supporting their objectives, improving overall program performance, and value for money.