Why Pay for Outcomes

Paying for outcomes creates powerful new partnerships and ways of working between donors, governments, foundations, and education providers. It changes the way they can achieve positive impact through a new model of funding and evaluating programs.  
 

No longer do funders pay for a pre-agreed list of activities and set programming from education providers. Instead, they define what outcomes they want to see, give providers the flexibility to respond to the needs of the beneficiaries, and only pay for the measurable impact the interventions deliver. 
 

Paying for what works

  • With our outcomes-based model, EOF pays almost entirely on the basis of results achieved, ensuring that taxpayer-funded domestic resources, international aid, and philanthropic funds are only used to pay for what works. 

  • Where appropriate, impact investors provide upfront finance through an 'impact bond' to support program improvements, and bear the financial risk as to whether or not a program delivers results.

  • This is a game-changing way to finance results in education. It is more than just a fund – it is a powerful new set of partnerships and way of working. 

  • Rather than fragmented spending on inputs and activities, it aligns the whole system around a common, agreed set of outcomes. Rather than limiting NGOs’ operations through rigid contracting and funding, EOF empowers and supports them to innovate, adapt, and find context-specific solutions. 

  • Providers are supported to increase their impact through independent evaluations. This radical transparency ensures that EOF, government, policymakers, and the broader donor community can systematically shift funds towards scaling programs that demonstrate the best results and value for money.
     

The ripple effects of outcomes funding

The positive impact of a results-based system includes:

Better funding

Improve the effectiveness of funding for education, using results-based finance to help funds achieve greater and more certain impact, and better value for money

Better funding

Improve the effectiveness of funding for education, using results-based finance to help funds achieve greater and more certain impact, and better value for money

1

More effective funding

Improve the effectiveness of funding for education, using results-based finance to help funds achieve greater and more certain impact, and better value for money.

2

More funding
Attract additional funding for education, leveraging funds from across a range of types of capital and sources including from other donors, investors, and governments.

3

Stronger systems

Build government capacity to commission for outcomes and create a broader enabling environment, helping to create sustainably stronger systems.

4

Knowledge & data
Provide new and better knowledge and data-collecting tools to support policy makers on current learning levels, ‘what works’ in the local context, and relative cost efficiency.

5

Better alignment
Improve alignment among actors in the education ecosystem, combat fragmentation – new partnerships for donors, investors, governments, and providers to work together.

6

Better financial tools
Develop outcomes funds and impact bonds as development tools – to be effective, efficient, and scalable, playing a role in the SDGs, in education, and beyond.

7

Accelerate innovation

Enable providers to innovate and develop context-specific approaches to delivering outcomes.