7/30/2019 Social Sector Innovation Funds
1/56
Social Sector Innovation FundsLessons Learned and Recommendations
Shivam Mallick Shah and Michele Jolin November 2012
www.americanprogress.o
7/30/2019 Social Sector Innovation Funds
2/56
7/30/2019 Social Sector Innovation Funds
3/56
Social Sector Innovation FundsLessons Learned and Recommendations
Shivam Mallick Shah and Michele Jolin November 2012
7/30/2019 Social Sector Innovation Funds
4/56
7/30/2019 Social Sector Innovation Funds
5/56
Contents 1 Introduction and summary
5 Why social sector innovation unds?
11 Spotlight on three speciic innovation unds
19 Lessons learned rom social sector innovation unds
29 Recommendations
41 Conclusion
43 Appendix A
45 Appendix B
47 About the authors
48 Endnotes
7/30/2019 Social Sector Innovation Funds
6/56
7/30/2019 Social Sector Innovation Funds
7/56
inun an summay | www.amangss.
Introduction and summary
Over he nex decade America will ace enormous social and economic shis,
driven by budge consrains a all levels o governmen, signican demographic
changes, and an increasingly globally compeiive, changing workorce. Our naion
will have less money or services a he same ime here will be greaer demand
rom a larger, older, and more diverse populaion han ever beore. Young people
and heir amilies will be especially vulnerable in he ace o hese challenges, jus
a a poin in heir lives when hey need o be gaining he criical educaion and
oher skills needed or lie-long success.
o signicanly improve oucomes or young people and heir amilies in he con-
ex o his consrained scal environmen and hese oher mouning demands, we
mus ocus on improving he ways in which axpayer dollars are spen. Te ederal
governmen mus ideniy and inves in wha works o be a caalys or and
invesor in eecive and innovaive soluions ha produce greaer social impac in
he key arenas ha will deermine our counrys uure compeiivenesseduca-
ion, economic opporuniy, workorce developmen, and youh developmen.
While he curren public debae largely has been abou more or less resources, i
also is criical o ocus on how o ge beter resuls wih exising resources.
Social secor innovaion undshose unds ha ocus on developing and scal-
ing promising and poenially ransormaive communiy-based approaches ha
solve criical social problemsare one example o how he ederal governmen
is increasingly driving public dollars oward invesing in wha works.1 Te Oce
o Managemen and Budge currenly highlighs six evidence-based iniiaives,2 o
which a subse is comprised o social secor innovaion unds. Specically:
Investing in Innovation Fund, which unds he developmen and scale-upo evidence-based kindergaren-hrough-12h-grade educaional sraegies
(Deparmen o Educaion; $150 million in scal year 2012 ending in Sepember)
7/30/2019 Social Sector Innovation Funds
8/56
2 cn Aman pgss | Sal S innvan Funs
Social Innovation Fund, which suppors public/privae invesmen in evidence-
based programs ocused on economic opporuniy, youh developmen, and
healhy uures in low-income communiies (Corporaion or Naional and
Communiy Service; $44.8 million in FY 2012)
Workforce Innovation Fund, which unds developmen and scale-up o evi-dence-based sraegies o improve educaion/employmen oucomes or U.S.
workers (Deparmen o Labor; $50 million in FY 2012).
Tese hree unds are unied by heir ocus on ransormaive change, evidence-
based crieria or invesmens, parnerships wih he privae secor, and commi-
men o learning rom granees o improve pracice more broadly. Each o hese
unds presens a iered gran-making approach ha enables hose applicans wih
greaer evidence o impac o be eligible or larger gran awards, while sill providing
gran awards or less proven bu promising eors ha are commited o collecing
relevan daa and invesing in he evaluaion o heir work. Social secor innovaionunds provide a means or governmen o build a larger evidence base o wha works
and develop a beter undersanding o he ools and bes pracices or evaluaion.
Tese unds illusrae a rend oward evidence-based decision making ha we see
aking hold in he governmen a myriad levels. Tere is growing momenum a
he ederal, sae, and local governmen levels or using daa, perormance, and evi-
dence o seer public dollars o more eecively address needs. In ac, he Oce
o Managemen and Budges Acing Direcor Jerey Ziens recenly sen a memo3
o all ederal agency heads asking hem o use evidence hroughou heir budge
submissions or scal year 2014 beginning in Ocober 2013.
Similarly, mayors and governors across he poliical specrum also are increasingly
using daa and perormance o ensure limied axpayer dollars are producing he
greaes impac possible. (See Appendix A or a discussion o he challenges and
opporuniies in advancing an inves in wha works policy agenda.)
Innovaion unds can play a criical role in helping governmens a all levels inves
in evidence-based programs, specically by ideniying promising programs in
communiies across our counry, invesing in eors o improve he evidence base,and unding heir scale and spread, when appropriae.
By conducing our own independen analysis and inerviewing leaders involved wih
designing and implemening seleced innovaion unds, seleced applicans and gran-
Social sectorinnovation unds
provide a means
or government
to build a larger
evidence base o
what works and
develop a better
understanding
o the tools and
best practices or
evaluation.
7/30/2019 Social Sector Innovation Funds
9/56
inun an summay | www.amangss.
ees o innovaion unds, and a range o indusry expers wih relevan perspecives,
his repor describes he role ha he governmen can play a muliple sages o inno-
vaionand he role social innovaion unds in paricular can play in advancing an
invesing in wha works policy agendasynhesizes he key lessons learned rom
prior innovaion unds, and proposes policy and implemenaion recommendaions
or srenghening curren and inorming uure evidence-based innovaion unds.
In he pages ha ollow, we will deail all o hese atribues o social innovaion
unds, synhesize lessons learned rom our experience o dae wih hese social
innovaion unds, and propose a se o policy and implemenaion recommenda-
ions or srenghening social innovaion unds and supporing he ederal govern-
men in implemening a wha works policy agenda. Here is a brie summary o
our policy recommendaions:
Redirec unding rom ineecive ederal governmen programs o social inno-
vaion unds. Deermine where addiional social innovaion unds should be creaed. Provide addiional unding or successul innovaion und granees. Increase unding or daa collecion and hird-pary evaluaions. Se aside a porion o larger ederal unding sreams and award hem compei-
ively agains evidence-based crieria.
We also recommend he ollowing seps be aken by he execuive and legisla-
ive branches o he ederal governmen o suppor qualiy implemenaion o
innovaion unds:
Creae an ineragency working group on social innovaion unds. Creae a common evidence ramework. Encourage greaer implemenaion o iered-awards approach. Improve he peer review process. Beter dene he role o philanhropy and he privae secor in supporing social
innovaion unds. Ensure he fexibiliy o privae-secor maching unds. Repor annually on learnings rom each innovaion und and applicaion o
hese learnings more broadly. Beter leverage daa collecion and evaluaion resuls o communicae he prog-
ress and learnings rom innovaion unds wih criical sakeholders. Beter undersand he suppor innovaion und granees seek. Coninue o increase ransparency o programs and processes.
7/30/2019 Social Sector Innovation Funds
10/56
7/30/2019 Social Sector Innovation Funds
11/56
Why sal s nnvan uns? | www.amangss.
Why social sector
innovation funds?
Te ederal governmen can leverage several disinc bu aligned approaches4 o
increasingly direc governmen unding oward social programs and inervenions
ha will have greaer impac. Governmen-run social innovaion unds can play an
imporan role in helping address criical naional or communiy needs when here is
an idenied challenge bu a sense ha we are suck in erms o making signican
progress, and when here are soluions in communiies wih an evidence base ha
could scale wih he righ kind o argeed governmen and privae-secor invesmen.
Social innovaion unds ypically inves in producs, processes, sraegies, and
approaches ha improve signicanly upon he saus quo and have he poenial
o power ransormaive change. And hese innovaions are on a coninuum in
erms o heir sage o growh and he level o daa or evidence hey have abou
heir impac. Les look a hese muliple sages o innovaion.
Multiple stages of innovation and the governments role
o mos, innovaion ypically connoes somehing ha is new and unique.
Innovaion is oen undersood as somehing unesed and in he earlies sages o
creaion and developmen. Eeciveness or evidence o impac, as well as he scal-
abiliy o ha impac, are usually excluded rom he deniion o innovaion.
In realiy, here are acually muliple sages o innovaion,5 and muliple poins a
which criical invesmens mus be made in developing and building an idea or
inervenion. Tis specrum o innovaion requires dieren kinds o invesmens
and dieren sizes o unding a each o he dieren sages.
As wih privae-secor nancing o a or-pro business, he earlies sage o a
social secor innovaion requires invesors who are ineresed in developing an
idea or concep and willing o olerae more risk. As he idea or concep evolves,
invesors need o ocus resources on developing and rening he modelsill a
7/30/2019 Social Sector Innovation Funds
12/56
6 cn Aman pgss | Sal S innvan Funs
Figure 1
Investing in multiple stages o innovation
riskier sage or invesors ineresed in developing he approach. As a model begins
o show promise and hereore means less risk o invesors, resources need o be
direced a undersanding he impac and resuls, as well as expanding he reach o
es is poenial or growh and impac a larger scale.
When he innovaion has developed evidence o impac and can be considered
proven, i hen makes sense or an invesor o drive large amouns o resources o
help scale and spread he idea. Governmen, philanhropy, and he privae secor
can play complemenary and imporan roles as invesors in hese muliple sages
o innovaion. In general, hey can do so because:
Philanhropy, individuals, and ohers in he privae secor have more fexibiliy,
are willing o ake more risks, and oen are closer o or have a beter sense o he
individuals or eams developing he innovaion. Teir opimal role is a he earli-
es sages o developing a concep, building a model, and beginning o under-
sand he impac o he innovaion.
Governmen is oen less fexible and more risk averse, so i can inves in an
innovaion ha has shown some promise and is ready o increase is evidence
base and begin o scale.
Optimal role for philanthropic
and private sector investments
Optimal role for
government investments
Start-up Nascent Promising Proven Scale
Concept stageCreating the
innovation
Refining the model and
demonstrating effectiveness
Pursuing limited growth and
building organizational capacity
Scaling the
innovation
Fundamentally new
ideas, innovations,
and concepts that
are being formed
Concept at early
stage with
functioning model
Concept put into practice,
with some positive results using
appropriate methods and at
size/breadth to suggest potential
for additional growth
Concept proven
according to
experts; capacity
exists to support
scaling
Source: The Bridgespan Group; individual interviews and Results or America team analysis.
7/30/2019 Social Sector Innovation Funds
13/56
Why sal s nnvan uns? | www.amangss.
Tis is no o say ha here is no a role or he governmen o play in hese
earlier sages o innovaion. Governmen can creae prizes or challenges o
simulae and encourage more innovaion around a paricular social challenge
where here is a need or new ideas and soluions. Governmen can inves in a
less proven model, program, or approach i i has more experienced leadership
eams and a commimen o collecing he righ daa ha is conducive o con-ducing qualiy evaluaion over ime. A his earlies sage, governmen should
ocus on qualiy managemen eams, clean daa collecion, back-end evaluaions,
and perormance-based decision making.
Te ederal governmen also can have an imporan caalyic impac in simply
seeking ideas or unding a earlier sages o innovaion. By shining a spoligh on
he criical issues mos in need o innovaion, and by creaing marke incenives
or good ideas, he ederal governmen has he abiliy o signal o he marke
where innovaion eors are mos needed, and by doing so can incen a range o
sakeholders o arge heir eors where our counry needs i mos.
Noneheless, given he size and reach o governmen, he mos imporan role ha
governmen can play is ha when an innovaion is proven, hen he governmen
can signicanly expand is invesmen and scale he innovaion or approach o
communiies across he counry. (see Figure 1)
Te muliple sages o innovaion and he governmens role can be bes illusraed
hrough concree examples o various programs:
A he mos developed end o he specrum, he Nurse Family Partnership
Program6 is an example o a program ha had developed a srong evidence
base hrough rigorous hird-pary evaluaions over ime, many o which were
suppored by privae philanhropy. Because o he powerul evidence suppor-
ing he impac o his program and is approach, he ederal governmen chose
o inves signicanly in he scale and spread o several proven approaches o
high-qualiy nurse home visiing programs like ha oered by he Nurse Family
Parnership hrough he Home Visiaion Program a he Deparmen o Healh
and Human Services ($1.5 billion rom FY 2010 o FY 2014).
In he middle o he specrum, he Social Innovation Fund granees have ideni-
ed programs ha have begun o show promise and some evidence o impac, so
governmen dollars are being invesed side by side wih privae-secor unds in
expanding promising programs and developing a sronger evidence base.
7/30/2019 Social Sector Innovation Funds
14/56
8 cn Aman pgss | Sal S innvan Funs
Te Investing in Innovation, or i3, program direcly arges is unding based
on muliple sages o innovaion. By design, eors wih sronger evidence o
impac and eeciveness are eligible or greaer amouns o ederal unding, bu
less proven eors are sill eligible or unding i deemed srong in oher areas
(including he experience o is managemen eam and a commimen o daa
collecion and evaluaion over ime). Tis is a model o how governmen cansrucure unding along he muliple sages o innovaion.
Common principles of innovation funds
Te Oce o Managemen and Budge currenly highlighs six evidence-based
iniiaives,7 o which a subse is innovaion unds:
Investing in Innovation Fund, which unds developmen and scale-up o
evidence-based K-12 educaional sraegies (Deparmen o Educaion; $150million in FY 2012)
Social Innovation Fund, which suppors public/privae invesmen in evidence-
based programs ocused on economic opporuniy, youh developmen, and
healhy uures in low-income communiies (Corporaion or Naional and
Communiy Service; $44.8 million in FY 2012)
Workforce Innovation Fund, which unds developmen and scale-up o evi-
dence-based sraegies o improve educaion/employmen oucomes or U.S.
workers (Deparmen o Labor; $50 million in FY 2012)
Tese evidence-based innovaion unds share a se o common principles ha
disinguish hem rom oher compeiive ederal unding sreams. Specically,
hese unds:
Are relenlessly ocused on oucomes and aspire o achieve ransormaional
change Appreciae he need and demand or eecive pracices and prioriize inves-
mens in wha works Recognize he power o parnering wih philanhropy and he privae secor Recognize he need o learn rom granees and inorm larger ederal unding
sreams
7/30/2019 Social Sector Innovation Funds
15/56
Why sal s nnvan uns? | www.amangss.
Les briefy examine each o hese disinguishing eaures in urn.
Achieving transformational change
Innovaion unds are based on a undamenal belie ha curren approaches willno resul in he large-scale dramaic impac we seek. Insead o simply unding
more o he same, hese unds seek o uncover he rich supply o ideassome
proven, some emerging, many somewhere in he middleha are worhy o
greaer exploraion and invesmen.
Prioritizing investments in what works
Innovaion unds incorporae he belie ha here are sandards o evidence
agains which grans can be made, and ha hose eors wih greaer evidence oimpac should receive larger awards. A he same ime, hese unds undersand
ha making invesmens in evaluaion now will help provide he daa and creae
he inrasrucure necessary o assess impac o a given innovaion over ime, and
o more clearly disinguish ne impac rom gross oucomes in doing so. Tese
unds recognize he imporance o coninuing o suppor promising eors ha
commi o a series o acions ha will develop an evidence base over ime.
Recognizing the power of partnering
with philanthropy and the private sector
Innovaion unds are a vehicle or philanhropic groups and he privae secor o
provide local suppor necessary or eors o ake hold in a communiy and be
scalable and susainable over ime. Eecively scaling innovaion in he social sec-
or requires philanhropic and nonpro parners o inves alongside businesses
in communiies and he governmen (a all levels) o suppor and susain rans-
ormaional change. Alhough his parnership wih he philanhropic and privae
secor is oen ranslaed ino providing maching unds o ederal grans, here are
muliple ways in which he philanhropic and privae secor can suppor innova-ion und granees and leverage he governmens invesmen. We will discuss his
in greaer deail laer in his paper.
7/30/2019 Social Sector Innovation Funds
16/56
10 cn Aman pgss | Sal S innvan Funs
Recognizing the need to learn from grantees
and inform larger federal funding streams
All hree ypes o innovaion unds examined in his repor propose a more
engaged and purposeul parnership beween he governmen and granees, and
perhaps mos imporanly has required a more inimae relaionship among gran-ees (such as requiring paricipaion in a communiy o pracice). Te purpose o
such engagemen is mean o allow promising ideas, programs, and rends o be
elevaed and applied more broadly across organizaions, agency eors, and he
naion, and no be limied o he pracice o a single granee or program. Tis ocus
on learning and spreading wha works is anoher esamen o he noion ha he
qualiy and impac o ederal policy will be increased by learning rom wha is
working in communiies ouside o Washingon, D.C.
7/30/2019 Social Sector Innovation Funds
17/56
Slgh n h s nnvan uns | www.amangss.
Spotlight on three specific
innovation funds
Te Invesing in Innovaion Fund, he Social Innovaion Fund, and he Workorce
Innovaion Fund illusrae he principles oulined above in unique bu comple-
menary ways. An iniial examinaion o hese hree specic innovaion unds
(see able 1 on ollowing page), coupled wih inerviews wih a diverse range o
individuals conneced o hese unds and a horough review o publicly available
maerials abou hese evidence-based iniiaives, reveals a rich se o learnings and
recommendaions or increased policy and implemenaion eeciveness o hese
and similar eors moving orward.
Alhough i is sill oo early o declare ha granees o hese evidence-based inno-
vaion unds have wholly achieved heir saed oucomes and goals, granees rom
each o hese programs are already demonsraing meaningul progress in heir
communiies and beyond.
Following are examples o he iniial impac o hese hree innovaion unds, as
well as examples o inerim oucomes and progress o seleced innovaion und
granees. We have included hese sories because we believe hey illusrae he
meaningul progress underway ha is helping young people, amilies, and com-
muniies in need, bu we realize hese sories all shor o conclusive evidence o
ne impac o hese innovaion unds or hese innovaion und granees. We look
orward o examining ha evidence when i becomes available, as each o he
eors described is required o be evaluaed by a hird-pary evaluaor.
The Social Innovation Fund13
In jus hree years, he Social Innovaion Fund has leveraged $137 million o publicdollars o raise $350 million in privae dollars o inves in communiy soluions wih
he poenial or greaer impac. Imporanly, 126 unders have mached hese iner-
mediary grans and many more have provided subgranee maching unds.
7/30/2019 Social Sector Innovation Funds
18/56
12 cn Aman pgss | Sal S innvan Funs
Table 1
Overview o selected evidence-based innovation unds
Innovation
Fund
Investing in Innovation Fund Social Innovation Fund Workorce Innovation Fund
Host agency Department o Education Corporation or National and
Community Service
Department o Labor
Focus Provides competitive grants tolocal school districts and nonprot
organizations with records o success
to help them leverage public/private
partnerships to implement education
practices that have a demonstrated
positive impacts on student achievement.
Provides competitive grants togrant-making intermediaries that
competitively select nonprot
organizations in order to grow
promising, evidence-based
solutions in three priority areas:
economic opportunity, healthy
utures, and youth development.
Provides competitive grants tostate workorce agencies, local
workorce investment boards, and
institutions eligible or to apply
or WIA section 166 grants to help
them develop evidence-based,
results-driven employment and
training services .
Critical design
elements
Tiered evidence rameworkstrong
evidence required or scale up grants,
moderate evidence required or validation
grants, and promising evidence required
or development grants.
In addition to eligibility requiremento meeting evidence standard, there
are selection criteria ocused on both
evaluation and evidence.
Private sector match equal to
20 percent o requested grant
amount required.8
Every i3 grantee must conduct
an independent evaluation,
and share the results o that
evaluation with the public.
Leverages experience and
inrastructure o quality
intermediaries in the eld.
Grantees and subgrantees must
match their unds dollar or dollar,
thereby leveraging the ederalinvestment 3-to-1.
Every program supported is
evaluated.
Every WIF grantee must conduct
an independent evaluation, and
can use up to 20 percent o grant
unds to cover the cost o that
evaluation.
Funding and awards
FY 2010 $650 million; 49 awards $50 million; 11 awards N/A
FY 2011 $149.4 million; 23 awards $49.9 million; ve new awards $147 million; 26 awards9
FY 2012 $150 million; TBD10 $44.8 million; our new awards $50 million; TBD
FY 2013 Request $150 million; N/A $50 million; N/A $125 million; N/A
Philanthropic
match
The Foundation Registry i3an online
marketplace by which i3 applicants
can submit their applications and be
matched with dozens o potential unders
across the countrywas created by the
oundation community, helping support
the nearly $150 million required in
private-sector unds across the rst two
grant competitions.
Sixty oundations are currently listed
as participating oundations in the
Foundation Registry i3.12
More than 125 oundations have
provided intermediary matching
unds and many more have
provided subgrantee matching
unds.
N/A (no match required).
Source: Interviews; review o notices or ederal unding opportunities or all three social innovation unds.
7/30/2019 Social Sector Innovation Funds
19/56
Slgh n h s nnvan uns | www.amangss.
Te Social Innovaion Fund has invesed in hundreds o communiies in 31 saes
and he Disric o Columbia. Tese gran dollars suppor 197 nonpro organi-
zaions14 ha are implemening promising, evidence-based soluions o pressing
social challenges acing low-income communiies.
Specically, resources rom his und are now unding program growh andspread ha will help young people creae new pahways or success and prepare
or employmen, suppor economic and asse developmen o low-income aduls
and amilies, help Americans access vial healh care, and comba povery across
a diverse cross-secion o America. For insance, he ollowing examples describe
iniial oucomes rom SIF granees:
Social Innovaion Fund granee LISC, a nonpro group ha helps neighbors
build communiies, suppors 47 nancial opporuniy ceners spanning 10 ciies.
A hese ceners, low-income amilies receive suppor and coaching o assis hem
in making beter nancial decisions. In jus six monhs LISC helped 2,400 peopleobain employmen, 1,500 individuals see an increase in heir ne incomes, 650
people improve heir credi scores, and 450 people now have a higher ne worh.
Five anipovery programs ha have proved eecive in New York Ciy are
now being replicaed in eigh ciies across AmericaCleveland; Kansas Ciy;
Memphis; Newark, New Jersey; New York Ciy; San Anonio; ulsa; and
Youngsown, Ohiowih suppor rom he Social Innovaion Fund. Tese
programs were originally developed and esed by he New York Ciy Cener
or Economic Opporuniy, he ciys award-winning anipovery cener. Te
programs being replicaed aim o urher he educaion, employmen, and asse
developmen o low-income aduls and amilies. In he rs year o one such pro-
gram, SaveUSA, paricipaing residens in our ciies opened more han 1,600
SaveUSA accouns wih close o $1 million in savings. I paricipans mainain
heir accouns, hey will be eligible or approximaely $426,000 in maching
unds. In New York Ciy alone, residens wih an average income o $16,000
were able o build up $250,000 in savings.
AIDS Unied is using is Social Innovaion Fund gran o suppor eigh innova-
ive parnershipscollaboraions o nonpros, researchers, and ohershaare improving individual healh oucomes and srenghening local services
sysems. In oal, i will connec a leas 3,500 low-income and marginalized
individuals wih HIV o high-qualiy healh care and he supporive services
hey need. Findings rom heir evaluaion are expeced o shed ligh on eecive
7/30/2019 Social Sector Innovation Funds
20/56
14 cn Aman pgss | Sal S innvan Funs
sraegies or increasing access o care or oher chronic disease suerers as well
as or individuals living wih HIV/AIDS.
The Investing in Innovation Fund15
As saed in he programs inaugural noice or proposals, he Invesing in Innovaion
Fund, or i3, is designed o provide grans o applicans wih a record o improving
suden achievemen and atainmen in order o expand he implemenaion o,
and invesmen in, innovaive pracices ha are demonsraed o have an impac
on improving suden achievemen or suden growh, closing achievemen gaps,
decreasing dropou raes, increasing high school graduaion raes, or increasing col-
lege enrollmen and compleion raes. In jus hree years he i3 program has:
Reviewed approximaely 2,300 applicaions vying or innovaion unds rom
across he counry
Engaged he privae secor in invesing in innovaions in educaion by securing
maching unds o nearly $150 million or he nearly $800 million o public dol-
lars graned, wih more han 250 privae-secor unders (oundaions, individu-
als, nonpro organizaions, and a range o oher nongovernmen eniies)
providing maching unds or i3 granees
Made available o he public a user-riendly, searchable daabase o inormaion
regarding all i3 applicans16 ha is now being used o share inormaion or oher
Deparmen o Educaion programs
Generaed momenum across he naion by awarding grans o 79 school dis-
rics and nonpro organizaions in 26 saes and he Disric o Columbia
Inroduced an evidence ramework and he approach o iered gran-making ied
o evidence ino he secor
Alhough he specic issue areas o ocus (absolue and compeiive prioriies)
wihin he program have varied some rom year o year, he iered evidence rame-work a he hear o he compeiion has no.
In shor, applicans mus mee specic evidence sandards in order o be eligible
or an i3 gran. Tis sandard varies depending on wheher applicans are reques-
7/30/2019 Social Sector Innovation Funds
21/56
Slgh n h s nnvan uns | www.amangss.
ing Developmen, Validaion, or Scale-Up grans. In addiion o meeing an
evidence sandard or eligibiliy, i3 granees are also hen assessed agains selec-
ion crieria by peer reviewers or boh evidence and evaluaion. Te able on he
ollowing page17 describes he dieren evidence sandards ha apply o each ype
o i3 gran, and indicaes where hese elemens are considered in deermining
eligibiliy or as selecion crieria. (See able 2 on ollowing page, and noe hahe evidence ramework used or he Social Innovaion Fund is aligned wih he i3
ramework bu uses slighly dieren erms o describe each o he hree iers.)
Since is inroducion his evidence ramework developed by he Deparmen o
Educaion in parnership wih he Insiue or Educaion Sciences, he Oce o
Managemen and Budge, and a range o addiional houghul policymakers and
indusry expers has been he ocus o much discussion in he educaion eld. Tis
ramework represens a range o perspecives rom respeced indusry leaders,
which will be discussed urher laer in his paper.
Resources rom i3 are unding program growh and spread. For insance, Aspire
Pubic Schools, a charer school managemen organizaion based on Oakland,
Caliornia, and New Visions or Public Schools, a nonpro educaion group in New
York Ciy, are wo examples o i3 granees who are nonpro organizaions wih a
long rack record o improving suden achievemen ha are using heir i3 grans o
scale and expand he reach o ools hey developed in house o suppor and impac
sudens and eachers in schools ouside o heir neworks o schools. Specically:
Aspire Public Schools i3 gran is helping suppor is eors o share daa
analysis ools wih he secor using Schoolzilla. Schoolzilla is a cloud-based daa
plaorm ha oers disrics and charer managemen organizaions he daa col-
lecion and reporing ools ha Aspire developed o serve is growing nework
o charer schools, which currenly serves 12,000 sudens in grades K-12 across
34 schools in six ciies. Eighy percen o Aspires sudens are low income.
Schoolzilla is currenly being used by more han 350 schools o analyze more
han 4 million es scores, approximaely 75 percen o which are rom radi-
ional, noncharer public schools.
Trough he sysemaic use o ormaive assessmen lessons, New Visions orPublic Schools is using is i3 gran o assis high school eachers in disric and
charer schools o enhance insrucion and improve suden achievemen in
algebra and geomery. New Visions currenly serves 34,000 sudens across
76 schools hroughou New York Ciy. eachers use maerials as par o New
7/30/2019 Social Sector Innovation Funds
22/56
16 cn Aman pgss | Sal S innvan Funs
Table 2
Overview o Investing in Innovation Fund evidence standards
Scale-up grants Validation grants Development grants
Strength o research
Eligibility requirement
Strong evidence. Moderate evidence. Reasonable hypotheses.
Internal validity
(strength o causalconclusions) and
external validity
(generalizability)
Eligibility requirement
High internal validity and high
external validity.
(1) High internal validity and moderate
external validity; or (2) moderateinternal validity and high external
validity.
Theory and reported practice
suggest the potential or ecacyor at least some participants and
settings.
Prior research
studies supporting
eectiveness or
ecacy o the
proposed practice,
strategy, or program
Eligibility requirement
(1) More than one well-designed
and well-implemented18
experimental study or well-
designed and well- implemented
quasi-experimental study; or (2)
one large, well-designed and
well-implemented randomized
controlled, multisite trial.
(1) At least one well-designed and
well-implemented experimental or
quasi-experimental study, with small
sample sizes or other conditions
o implementation or analysis that
limit generalizability; (2) at least one
well-designed and well-implemented
experimental or quasi-experimental
study that does not demonstrate
equivalence between the intervention
and comparison groups at program
entry but that has no other major
aws related to internal validity; or
(3) correlational research with strong
statistical controls or selection bias
and or discerning the inuence o
internal actors.
(1) Evidence that the proposed
practice, strategy, or program,
or one similar to it, has been
attempted previously, albeit on
a limited scale or in a limited
setting, and yielded promising
results that suggest that more
ormal and systematic study is
warranted; and (2) a rationale or
the proposed practice, strategy,
or program that is based on
research ndings or reasonable
hypotheses, including related
research or theories in education
and other sectors.
Practice, strategy,
or program in
prior research
Selection Criterion
The same as that proposed or
support under the Scale-up grant.
The same as, or very similar to, that
proposed or support under the
Validation grant.
The same as, or similar to, that
proposed or support under the
Development grant.
Participants
and settings in
prior research
Eligibility requirement
Participants and settings included
the kinds o participants and
settings proposed to receive the
treatment under the Scale-up
grant.
Participants or settings may have been
more limited than those proposed
to receive the treatment under the
Validation grant.
Participants or settings may
have been more limited than
those proposed to receive
the treatment under the
Development grant.
Signifcance o eect
Selection criterion
Efect in prior research was
statistically signicant, and
would be likely to be statistically
signicant in a sample o the size
proposed or the Scale-up grant.
Efect in prior research would be likely
to be statistically signicant in a sample
o the size proposed or the Validation
grant.
Practice, strategy, or program
warrants urther study to
investigate ecacy
Magnitude o eect
Selection criterion
Based on prior research,
substantial and important or thetarget population or the Scale-up
project.
Based on prior research, substantial
and important, with the potential othe same or the target population or
the Validation project.
Based on prior implementation,
promising or the targetpopulation or the Development
project.
Source: U.S. Department o Education.
7/30/2019 Social Sector Innovation Funds
23/56
Slgh n h s nnvan uns | www.amangss.
Visions validaed collaboraive inquiry model. Currenly in is rs year and
encompassing 14 schools and 3,200 sudens, he ve-year Accessing Algebra
Trough Inquiry program is on pah o impac 65,000 sudens in New York
Ciy and beyond.
Oher examples, such as he Diplomas Now eam comprised o lead applicanJohns Hopkins Universiys Cener or Social Organizaion o Schools and
parnering wih nonpro groups Communiies in Schools and Ciy Year, are
supplemening proven school modelsin his case, alen Developmen, wih
proven parner suppor or menoring, uoring suppor and oher suppors
rom Ciy Year and Communiies in Schoolsare implemening eors in
schools already and seeing dramaic resuls. Troughou sies in Philadelphia,
Miami, and Seatle, schools implemening Diplomas Now saw a leas a 50 per-
cen drop in he number o sudens ailing mah.
All o hese examples help illusrae ha i3 granees are making a meaningul di-erence in communiies oday.
The Workforce Innovation Fund19
Granees or he Workorce Innovaion Fund were announced in June 2012:
26 grans across 18 saes ranging rom $1 million o $12 million each.20 While
he und is oo new o claim signican impac already, i is worh noing ha
he remendous response and qualiy o applicaions received helped lead he
Deparmen o Labor o supplemen he original $98 million program wih $49
million rom FY 2011 and FY 2012 unds. I is also worh noing ha leaders rom
he Deparmen o Labor proacively worked wih counerpars in oher agencies
o learn rom he experience o oher innovaion unds when designing and now
implemening is program.
Tere are noable dierences in he Workorce Innovaion Fund rom he
Invesing in Innovaion Fund and he Social Innovaion Fund ha are he resul o
houghul and deliberae policy decisions ha refec he conex o he work-
orce developmen eld. For insance, alhough he Workorce Innovaion Funddoes no adhere o he same evidence ramework as he oher wo unds, i does
include a iered gran-making approach where applicans mus ideniy he level
o evidence on which heir proposal is based, as well as ariculae heir plans or
evaluaion o heir proposed eor. All Workorce Innovaion Fund granees are
7/30/2019 Social Sector Innovation Funds
24/56
18 cn Aman pgss | Sal S innvan Funs
required o conduc an independen hird-pary evaluaionhe cos o which
can be covered by up o 20 percen o heir gran.
Also, meeing an evidence bar is no an eligibiliy requiremen in he workorce
gran as i is in oher wo social innovaion unds, bu raher is a selecion cri-
erion agains which applicaions are reviewed. And he Workorce InnovaionFund does no include a privae-secor maching requiremen bu does srongly
encourage parnerships wih criical sakeholders, including he privae secor,
in is reques or proposals. Te qualiy o hese parnerships is assessed wihin
muliple selecion crieria as well. Tese nuanced dierences refec he ocus o
he Deparmen o Labor o suppor innovaion and help build he evidence base
needed or he eld over ime.
O he 26 grans awarded his pas summer, here are several examples o eors
ha appear well posiioned or success.
Te Ciy o Los Angeles Workorce Invesmen Board is leading a consorium o
Los Angeles Ciy and Los Angeles Couny workorce invesmen boards in build-
ing he LA Reconnecions Career Academy, a career developmen collaboraive
ha aims o recrui nearly 1,400 ou-o-school youh and young aduls and pro-
vide hem he supporive services hey need o reconnec o educaion and work.
Tis career academy builds upon he ciys commimen o realign youh work-
orce invesmen unds o comba he high school dropou crisis in Los Angeles.
Is leadership eam represens he workorce developmen, educaion, human
services, and business leadership in he ciy and surrounding couny.
Te Tree Rivers Workorce Invesmen Board in Pitsburgh will use is gran
o design and build a New App (appreniceship) or Making i in America.
Te design and implemenaion o a new employmen and raining sysem or
advanced manuacuring aims o beter suppor he needs o boh poenial
workers and poenial employers.
7/30/2019 Social Sector Innovation Funds
25/56
Lssns lan m sal s nnvan uns | www.amangss.
Lessons learned from
social sector innovation funds
Based on inerviews wih policymakers and granees o he Social Innovaion
Fund and he Invesing in Innovaion Fund, along wih a more cursory consid-
eraion o he Workorce Innovaion Fund (given ha he program is early sage
and o dae has run jus a single compeiion), he ollowing are several key lessons
learned ha could improve curren and inorm uure innovaion unds. Tere is
boh some good news in erms o promising lessons learned as well as some areas
or improvemen and noable challenges ha need o be addressed.
The good news
There is a rich supply of quality ideas and organizations in need of funds
Firs and oremos, here is a rich supply o promising and evidence-based pro-
grams and organizaions ha are eligible or and can enormously bene rom he
kind o ederal unding provided by evidence-based innovaion unds.
In designing and launching he unds, here was a serious concern among poli-
cymakers and advocaes abou wheher here would be a sucien number o
organizaions who could mee he evidence sandards and qualiy or grans. Tis
concern so ar seems o be unounded. Te quaniy and diversiy o applicans
across hese programs illusraes boh an adequae pipeline or supply and he
ineres o he eld in such programs.
For insance, wih he i3 program, in 2010 only 2.9 percen o applicans received
grans, and in 2011 only 3.8 percen o applicans received grans. Te SocialInnovaion Funds inermediary organizaions re-graned unds o oher organiza-
ions, and each ound ha hey oo received ar more qualiy applicaions han
hey could und, and in some insances were overwhelmed by he demands o
reviewing and processing so many gran applicaions.
7/30/2019 Social Sector Innovation Funds
26/56
20 cn Aman pgss | Sal S innvan Funs
Te high scores and razor-hin margins beween granees and nongranees urher
illusrae he qualiy o he ideas pu orh or unding consideraion. Furhermore,
he coninued implemenaion o nonunded applicans demonsraes local buy-in
and deerminaion, as well as (again) he qualiy o ideas beyond hose ew ha
were awarded innovaion unds.
One possible excepion o he adequacy o he pipeline or supply o granees
may be wih he number o qualied applicans or he Social Innovaion Fund.
In 2010 (he rs year o compeiion), here were 69 inermediary applicans,
bu here were 24 in 2011 and 31 in 2012.21 Tis may sugges a need or he
Corporaion or Naional and Communiy Service o beter marke or com-
municae he role o inermediaries, or a need or philanhropy o suppor he
creaion and srenghening o eniies who could serve as inermediaries. Tis
could include more local Unied Ways, communiy oundaions, and oher resuls-
oriened communiy gran makers.
Noneheless, he qualiy o he inermediary applicans or he Social Innovaion
Fund seems o have remained srong despie he decline in applicaions rom he
programs inaugural compeiion. Given he adequacy o he pipeline and he
scale o needs in our communiies, his would sugges ha he ederal governmen
should increase (someimes signicanly) he amoun graned by each Innovaion
Fund o suppor more evidence-based inervenions.
Organizations are responding to government signals
about the need for evidence
Te evidence sandards included in innovaion unds have provided incenives
and pressure or organizaions o ocus on improving heir evidence base. And
organizaions are responding o governmen signals ha evidence could be
increasingly imporan o receiving ederal resources.
Muliple innovaion und applicans (no jus granees) noed ha applying or inno-
vaion grans allowed hem o push heir organizaion o adop an oucomes-driven
or evidence-based approach o heir work. Oher innovaion und granees noed hahe learnings rom heir gran are inorming he broader work o heir organizaions.
Case in poin: One Social Innovaion Fund granee described an eor o collec
common perormance indicaors across heir subgranees ha is now becom-
7/30/2019 Social Sector Innovation Funds
27/56
Lssns lan m sal s nnvan uns | www.amangss.
ing sandard pracice or oher gran-making porolios a heir organizaion.
Anoher granee described how hey are beter able o encourage local aliaes
o run evidence-based compeiive gran processes because o heir requiremen
o do so as an SIF granee.
All o hese examples illusrae he power innovaion unds can have on he recipienorganizaion isel in addiion o he inended impac on young people, amilies, and
communiies. Given ha organizaions are beginning o respond o ederal govern-
men signals abou he need or evidence, he ederal governmen and philanhropic
organizaions may wan o increase unding or organizaions o improve heir daa
collecion and conduc hird-pary evaluaions in order o mee evidence sandards.
Te governmen also may wan o increase evidence sandards in oher governmen
programs in order o expand he number o signals coming rom he governmen and
urher incen behavior changes beyond he number o acual governmen grans.
I is imporan o noe hough ha a shi oward becoming a daa-driven andevidence-based organizaion can come wih risk. Several organizaions noed a
relucance o evaluae heir eors and share heir ndings publicly due o he con-
cern ha hey would be punished by unders and he public or anyhing shor
o uniormly posiive impac. Tis is paricularly roubling or organizaions since
i is mos common or evaluaions o show mixed resuls and o demonsrae some
bu no necessarily uniormly posiive impac. Noneheless, organizaions noed
he value o evaluaions in helping hem undersand and improve upon heir prac-
ice, coupled wih he growing demand or evidence o wha works rom public
and privae unders, as wo criical acors ha are increasingly moving hem in
his direcion despie he iniial perceived risk o doing so.
Matching grants draw new financial resources
Mach requiremens rom he privae secor and philanhropic organizaions in
order o qualiy or hese innovaion und grans are encouraging new sources o
unding. Te privae-secor mach o he Social Innovaion Fund and i3 helped
granees secure unds ha would have been oherwise hard o raise, and orge
parnerships ha are srenghening he impac o heir work.
Boh Social Innovaion Fund and i3 granees describe how he required privae-
secor mach helped hem secure unds rom new unders who welcomed he
leverage he ederal gran dollars provided heir privae mach. A closer look a he
Matchrequirements
rom the priva
sector and
philanthropic
organizations
in order to
qualiy or the
innovation
und grants a
encouraging
new sources o
unding.
7/30/2019 Social Sector Innovation Funds
28/56
22 cn Aman pgss | Sal S innvan Funs
i3 program reveals ha more han 250 dieren organizaions provided more han
325 maching grans o he 49 i3 granees announced in is inaugural compeiion
in 2010. O he near $140 million raised by privae-secor maching unds, 53
percen came rom noncorporae oundaions and he remaining 47 percen rom
nonpro organizaions, individuals, corporae oundaions, privae companies,
and oher nongovernmen eniies.
O he $140 million raised by maching unds, more han $100 million was new
cash raised by i3 applicans.22 And i3 granees in each o is compeiions have
had o secure heir privae-secor maches very quickly. Due o he large number
o applicansnearly 1,700 in 2010 and nearly 600 in 2011he Deparmen o
Educaion chose no o require evidence o a secured privae-secor mach a he
ime o applicaion. Insead, ollowing peer review, applicans were named high-
es raed and hen had jus several weeks o secure heir privae-secor maches.
Once evidence o a secured privae-secor mach was reviewed and approved by
he Deparmen o Educaion, highes-raed applicans were named granees.
Despie his noable ime crunch o secure maches, every highes-raed i3 appli-
can successully secured heir privae-secor mach and become an i3 granee.23
Te diversiy o privae-secor unding parners and he more han $100 million
in new cash alone demonsrae he eeciveness o he i3 mach requiremen in
broadening he base o unders or evidence based innovaion unds.
Noneheless, inerviews wih governmen ocials and granees sugges he success
o innovaion unds could be increased by providing more clariy abou and fexibil-
iy wih he purpose o privae-secor engagemen. oo oen, he engagemen o he
privae secor is limied o simply lling a shor-erm, criical unding gap. By more
clearly providing incenives and describing he aims o privae-secor engagemen,
and by more clearly describing ha he privae secor includes all nongovernmen
eniies (nonpros, philanhropy, and no jus he radiional or-pro secor), he
governmen can help more innovaion und granees beter leverage he resources o
he privae secor and hereby maximize and possibly accelerae heir impac.
Ideas can transfer and influence how other federal programs are designedand how federal funds are ultimately allocated
Innovaion unds are nding resuls-oriened ideas ha can be adoped on a larger
scale by he ederal governmen. By design, innovaion unds are inended o be a
7/30/2019 Social Sector Innovation Funds
29/56
Lssns lan m sal s nnvan uns | www.amangss.
ool or governmen o ideniy promising, evidence-based ideas in communiies
around he counry, suppor he developmen o heir evidence base, and scale he
ideas o more communiies. Te goal is or he successul ideas o infuence ederal
policy more broadly. Our inerviews wih policymakers and granees sugges ha
his idea ranser is beginning o happen in a ew selec circumsances, alhough
more needs o be done o ensure his happens more ecienly and eecively.
For insance, Social Innovaion Fund inermediary he New York Ciy Cener or
Economic Opporuniy has worked closely wih he New York Ciy Mayors Fund
and senior leaders a he Deparmen o Housing and Urban Developmen o gar-
ner suppor or including $50 million in Presiden Obamas FY 2013 budge or a
program called Jobs-Plus, which aims o increase he level o earnings and employ-
men among residens o public housing.
Evaluaions o Jobs-Plus indicae meaningul impac, and hereore he New
York Ciy Cener or Economic Opporuniy included expanding he program oaddiional sies as a proposed use o is Social Innovaion Fund gran. Nine Jobs-
Plus programs are run in New York Ciy, one which is suppored by his SIF gran.
By leveraging he daa ha demonsraes eeciveness and sraegically working
wih agency and leaders a he Deparmen o Housing and Urban Developmen,
he ciys Cener or Economic Opporuniy has helped make he case or ederal
unding o a Social Innovaion Fund inermediary-sponsored program.
The need for improvement
Common evidence framework
Our research indicaes ha here is a need or more alignmen on evidence san-
dards. Innovaion unds generally have sough o creae a common sandard o
evidence o impac, bu here sill remains insucien alignmen across all ederal
agencies regarding wha is mean by eeciveness (or ransormaional change) and
wha measures are used o deermine eeciveness. A common evidence ramework
is criical o help creae a level playing eld by miigaing he uninended conse-quences o comparing resuls rom evaluaions wih various levels o design rigor
i.e., weakly designed evaluaions may yield srong evidence o impac whereas a
well-designed evaluaion may yield weak evidence o impac. Policymakers and
unders need o make sure wha hey are comparing is acually comparable.
7/30/2019 Social Sector Innovation Funds
30/56
24 cn Aman pgss | Sal S innvan Funs
Te Social Innovaion Fund, i3, and Workorce Innovaion Fund share common
elemens in he way ha evidence is considered and used as a crierion or selec-
ion and in erms o he evidence base o be developed over ime. For insance, all
hree programs ask applicans o presen boh he evidence hey have already o
demonsrae he eeciveness o wha hey propose o do as well as heir plans or
urher evaluaing he work hey propose o do. In ac, all hree programs requiregranees o conduc an independen hird-pary evaluaion. All hree programs
also adhere o a iered evidence ramework wih hree caegories or consider-
aion. Te erms or hese hree caegories vary across he programs, bu in shor
hey all indicae dieren levels o proven eeciveness and more or less range
rom promising o proven.
Bu absen resuls rom a randomized conrolled rial, here remains lack o agree-
men inside and ouside governmen abou wha consiues meaningul evidence
o impac. Tis means here is no clear indusry sandard ha he governmen
can simply adop.
Furhermore, using random conrolled rials as he measure, here is a limied
pipeline o organizaions ha have he sronges evidence o impac. In ac, many
argue ha sysemic change eors will never have he evidence required o show
ha hey work because by heir very naure here is no applicable conrol group
agains which progress can be measured.
Te perceived high cos o evaluaion, he limied capaciy in he eld o conduc
qualiy evaluaions a scale, and he limied capaciy o implemening organiza-
ions o suppor qualiy evaluaions urher exacerbaes his issue. Te Oce o
Managemen and Budges recen guidance encouraging agencies o consider
evidence-based iered gran-making approaches24 presens an opporuniy o
help increasingly align evidence sandards across governmen, and reinorces he
imporance o beter undersanding how o apply he appropriae sandards o
evidence o dieren circumsances and conexs.
Improved peer review
Eecive sewardship o axpayer dollars is one o he greaes responsibiliies o
he ederal governmen. Peer review sysems are known o have been pu in place
o preven agencies rom allocaing ederal gran awards in biased ways, and o
proec agencies rom such accusaions o misconduc. Peer review sysems were
7/30/2019 Social Sector Innovation Funds
31/56
Lssns lan m sal s nnvan uns | www.amangss.
no necessarily designed o maximize qualiy decision making or improve he
value o programs. In ac, many would argue ha he basic model o peer review:
Oen disallows he mos inormed reviewers rom reviewing applicaions
because o perceived confics
ypically does no include an in-person meeing wih he applicans leadershipeam ypically disallows a reviewer rom reviewing exernal inormaion o assess
claims made in an applicaion
Tis basic model is simply inconsisen wih he invesmen analysis bes pracices
any privae-secor under would employ.
Our inerviews ound ha here is a need o updae peer review and oher selec-
ion processes o ensure greaer qualiy and alignmen across innovaion unds.
Te curren governmen process or selecing grans creaes cerain consrains onhe poenial impac and eeciveness o innovaion unds.
Innovaion Funds, like mos governmen programs, rely on assessmens o submi-
ed proposals made by panels o peer reviewers. Peer review is embraced by he
governmen as an imporan way o ensure airness in he selecion o granees.
ypically, agency programs pos a call or peer reviewers o he general public and
hen review he many resumes received or confics o ineress and oher acors
o deermine wheher hey are eligible o be a peer reviewer. Once seleced, peer
reviewers are ypically assigned o a specic panel o peer reviewers who hen
review some subse o applicaions and score hem agains he programs selecion
crieria (and someimes, compeiive preerence prioriies as well).
Tese scores are hen abulaed across panels and hen used o develop a slae o
graneesa rank-ordered lis o applicans by score. Someimes here are addi-
ional layers o review, or a variey o reasons, bu or he mos par, he scores
assigned by peer reviewers inorm he lis o likely granees or a given program.
Wih innovaion unds, he peer review process creaes cerain consrains ha
migh infuence he eeciveness and impac o hese programs. For insance,policymakers and hose involved wih implemening Social Innovaion Fund and
i3 programs expressed concern ha individuals wih he mos relevan experise in
a gran-making area were oen no allowed o be peer reviewers. Insead, hey are
deemed conficed and unable o review gran proposals.
7/30/2019 Social Sector Innovation Funds
32/56
26 cn Aman pgss | Sal S innvan Funs
Alhough i is imporan o noe apparen conficsand his should be con-
sidered as an imporan acor when selecing and assigning peer reviewers
oher acors based on experience also mus come ino play. Because he Social
Innovaion Fund and i3 are seeking o und ransormaional, evidence-based
ideas here is a need o have he gran applicaions reviewed by individuals who
boh undersand he scope o he eld, he poenial or he ideas o be ransor-maion and, mos imporan, he qualiy o he evidence and plan o build evi-
dence over ime. Our research and inerviews indicae ha here is grea variaion
in how agencies implemen peer review, and here are indeed examples o agencies
ha adhere o less resricive confics policy.
Policymakers and hose involved wih implemening social secor innovaion und
programs also expressed concern ha here are cerain oudaed rules, such as
disallowing peer reviewers rom reviewing any applicaions rom heir home sae
because hey may have a bias in suppor o hose applicaions. Tis urher compli-
caes he acual implemenaion o peer review panels where geography is unlikelyo be a criical acor in selecion.
In a similar vein, hose involved wih implemening i3 noed ha curren agency
sysems in place or scoring applicaions relies on oudaed echnology and racured
guidance o agency sa. For insance, panel moniorshose agency sa who
manage he peer review panelsoen are insruced o no read he applicaions
ha heir panel o peer reviewers is reading so ha hey are no biased in anyway. Bu
his means ha when asked quesions by heir panel o peer reviewers, panel moni-
ors may lack he relevan conex and conen knowledge o provide he highes-
qualiy responses, which in urn may impac how peer reviewers score applicaions.
Peer reviewers ypically are required o only consider he conens o a proposal
when assessing scores. Tis guidance hereore disallows peer reviewers rom
leveraging heir prior knowledge abou a given leadership eam, opic, organiza-
ion, or geography. Tis also disallows peer reviewers rom gahering addiional
inormaion o es or quesion somehing hey have read in an applicaion hey
are reviewing. Alhough such saeguards are in place or good reason and such
assessmens may be subjecive, enabling some fexibiliy here could provide valu-
able insigh ino he review process.
Limied echnology is anoher acor upon which agency sysems can improve.
Peer reviewers ypically mus inpu all o heir commens and scores by access-
ing oudaed agency-specic sysems, which can be edious and ime consuming
It is critical that
some o the
challenges o
the peer review
process be
addressed in
order or the
innovation
unds to achieve
their intended
impact and
results.
7/30/2019 Social Sector Innovation Funds
33/56
Lssns lan m sal s nnvan uns | www.amangss.
and discourage peer reviewers rom providing meaningul eedback o applicans.
While many o he challenges described here apply o oher governmen programs
as well, given he unique scope and purpose o he innovaion undsocus on
ransormaional change, iers o evidencei is criical ha some o he chal-
lenges o he peer review process be addressed in order or he innovaion unds o
achieve heir inended impac and resuls.
In addiion o peer review, oher deaul inernal processes can limi he eecive-
ness o innovaion unds. In many agencies, deaul processes do no ypically
prioriize ransparency, and curren capaciy consrains make his even more
dicul o change or large-scale compeiions.
Privacy concerns and regulaions, or example, are oen cied as he reason why
applicaions, scores, and peer reviewer commens canno be shared wih he pub-
lic. When he Deparmen o Educaion chose o pos unprecedened amouns o
inormaion on he applicaions i received or he rs round o i3 and PromiseNeighborhoods on a newly creaed websie, htp://www.daa.gov/communiies/
educaion, his required signican inernal leadership and resources and ye sill
did no mee he needs o many criical sakeholders.
Improved collaboration and learning
Tere also is a need or more fexibiliy or collaboraion and learning, boh o
which are criical o he success and impac o innovaion unds. A presen, col-
laboraion and learning can be limied by curren ederal governmen consrains.
Te innovaion unds have sough o creae a learning relaionship or communiy
o pracice among granees o allow promising ideas, insighs, or rends o be
shared more broadly across organizaions and possibly he eld. Curren ederal
consrains can preven common-sense collaboraion wih he eld ha could
improve program eeciveness. For insance, because mos agencies will no share
inormaion wih a subse o paries ha is no oherwise made available o all par-
ies, i can be dicul or a ederal agency o parner wih nonpros ha may be
able o provide meaningul argeed assisance o applicans.
Similarly, i can be more dicul o parner wih he philanhropic communiy
because an agency may be prohibied rom sharing gran applicaions or oher
inormaion ha can inorm a philanhropiss ineres in unding an eor.
7/30/2019 Social Sector Innovation Funds
34/56
28 cn Aman pgss | Sal S innvan Funs
Sharing lessons learned to more broadly impact
other federal programs and policies
Lessons learned rom innovaion unds need o inorm unding rom larger
sreams o ederal dollars and ederal policy more broadly. As noed earlier,by
design, he innovaion unds inend o have a more engaged and purposeul par-nership beween he governmen and granees in order o share ideas and lessons
learned and increase he poenial or successul, evidence-based programs o
infuence governmen policy and unding more broadly. Given ha he size o he
innovaions unds isand likely will remainrelaively small compared o oher
compeiive and ormula programs, a key goal in he design and creaion o hese
unds always was o use hese unds as examples o show ha evidence-based
unding can work and o es he ways in which i can mos successully be done.
o dae, here are good examples o where his is happening, such as he example
described earlier wih he experience o he New York Ciy Mayors Fund, he
New York Ciy Cener or Economic Opporuniy, and he Deparmen oHousing and Urban Developmen. Bu inerviews wih policymakers and individ-
uals who implemen he unds sugges ha more needs o be done o share wihin
he hos agency he lessons learned abou how o expand evidence-based unding
in he ederal governmen, and he lessons learned need o help inorm eors o
make he larger compeiive or ormula dollars increasingly evidence based.
Te innovaion unds need o more inenionally share lessons abou implemena-
ion o his kind o evidence-based unding, such as wih he evidence ramework,
he peer-review process, and he maching requiremen, as well as share learnings
rom he hird-pary evaluaions underway by granees and he learnings rom he
program-wide evaluaions ha deparmens are conducing hemselves. By leveraging
he work underway by innovaion und granees o srenghen our collecive under-
sanding o wha works, in wha conex and wih wha levels o suppor, large ederal
governmen programs can beter design and implemen oher ederal programs.
7/30/2019 Social Sector Innovation Funds
35/56
rmmnans | www.amangss.
Recommendations
Innovaion unds are one example o how he ederal governmen can increasingly
drive public dollars oward promising or proven soluions. A sraegic approach o
improving exising and creaing addiional innovaion unds can help increase he
amoun o governmen resources ha are direced a evidence-based soluions and
address he needs o more communiies across he counry.
Te ollowing policy and implemenaion recommendaions are designed o help
ederal agency leaders, policymakers, and heir criical exernal parners makeinormed decisions o suppor and sar evidence-based innovaion unds, as well
as improve he impac o he exising innovaion unds, so ha here is consisency
where appropriae and clariy a all imes as o he ederal governmens approach
oward invesing in wha works hrough innovaion unds.
Policy recommendations
Redirect funding from ineffective programs to innovation funds
Congress should increase unding or he Invesing in Innovaion Fund a he U.S.
Deparmen o Educaion, he Social Innovaion Fund a he Corporaion or
Naional and Communiy Service, and he Workorce Innovaion Fund a he U.S.
Labor Deparmen by a leas 25 percen annually and sop invesing in programs
ha are no achieving heir desired resuls.
We recommend increasing resources or all o hese programs, wih corresponding
decreases in oher agency programs ha do no use evidence as a crieria, givenha here is sucien demand or hese programs and ha hese unds are seer-
ing more public dollars oward evidence-based soluions.
7/30/2019 Social Sector Innovation Funds
36/56
30 cn Aman pgss | Sal S innvan Funs
Determine where additional innovation funds should be created
Te Oce o Managemen and Budge should ideniy wihin 180 days he educa-
ion, youh developmen, workorce developmen, and social mobiliy challenges
ha could bene rom he creaion o an innovaion und; provide an adequae
jusicaion and raionale or he need or an innovaion und; and oer sug-gesions or placemen in a paricular agency. I here is an adequae raionale,
Congress should creae argeed innovaion unds ha are ocused on issues
poised or ransormaional change. Given he experise and reach o OMB as well
as heir expressed ineres in evidence-based policy, hey are bes posiioned o
provide an adequae jusicaion o Congress as o he proper ocus and place-
men o new innovaion unds.
Provide additional funding for successful innovation fund grantees
Te Obama adminisraion should include provisions in uure budge requess
direcing all ederal deparmens and agencies o provide poins o signican preer-
ence o organizaions ha have received grans rom and have me he perormance
benchmarks esablished by ederal innovaion unds when applying or unds rom
oher ederal compeiive gran programs. Te goal o his recommendaion is o
help successul innovaion und granees expand heir infuence on broader ederal
policy as well as increase unding rom oher sreams o ederal unding.
Increase funding for data collection and third-party evaluations
Te Obama adminisraion should include provisions in uure budge requess
ha increase unding or individual organizaions, collaboraions, or sysemic-
change eors ineresed in improving heir daa collecion and/or conduc-
ing a hird-pary evaluaion. Tis could also be advanced by he Congressional
Appropriaions Commitees, which could require a meaningul se-aside o unds
rom each program o be used or rigorous daa collecion and evaluaion o grans
unded under ha program.
Given ha organizaions are beginning o respond o ederal governmen signals
abou he need or evidence, he ederal governmen should increase unding o
improve heir daa collecion and conduc hird-pary evaluaions in order o mee
evidence sandards and improve pracice.
7/30/2019 Social Sector Innovation Funds
37/56
rmmnans | www.amangss.
Set aside a portion of larger federal funding streams
and award them competitively against evidence-based criteria
Evidence-based innovaion unds are and will likely remain a small porion o oal
ederal unds. Wih his sark realiy in mind, mos agree ha heir overall impac
will likely remain limied i how he primary ederal unds are awarded remainsunchanged. Agencies should consider wheher some porion o larger ederal und-
ing sreams ha are ypically awarded by ormula can be se aside and compeiively
awarded o hose applicans ha have evidence o he ne impac o heir work, and/
or are commited o invesing in qualiy daa collecion and evaluaion such ha heir
ne impac can be assessed over ime. Tis approach will urher help he governmen
incen he creaion o a broader evidence base agains which o assess wha works.
Implementation recommendations
Create an interagency working group on social sector innovation funds
Te Whie House and he Oce o Managemen and Budge shouldcreae an
Ineragency Working Group on Innovaion Funds o suppor he developmen,
coninuous improvemen, and implemenaion o unds. o ensure agencies have
he suppor o move swily in seting up new unds and in coninuing o align and
improve exising ones, he Whie House and OMB should regularly convene an
ineragency working group on innovaion unds.
Te working group would allow agencies o leverage shared knowledge and
experise, develop shared sandards and pracices, and o inorm he design o
new unds while also inorming he design o he inernal processes ha will allow
hose unds o operae successully. Te working group also could ocus on align-
ing evidence sandards among exising and new innovaion unds. Te bene or
he adminisraion would be a cohesive, coordinaed porolio o innovaion unds
operaing rom a core se o principles o drive policy goals and ineress.
Create a common evidence framework
Te Whie House Domesic Policy Council and OMBwih he Council o
Economic Advisers a key parnershould iniiae an ineragency process o cre-
7/30/2019 Social Sector Innovation Funds
38/56
32 cn Aman pgss | Sal S innvan Funs
ae a common evidence ramework ha can be used across geographies, agencies,
and programs o gauge eeciveness and impac. Tis ramework should be devel-
oped and veted by expers in he governmen and he philanhropic, nonpro,
and privae secors, and mus consider a ocus on cos25 as well as a ocus on ou-
come. I should be user-riendly and allow promising organizaions o sel-assess
wheher hey mee he crieria or dieren levels o unding.
Furhermore, he ederal governmen mus suppor eors o develop addiional
measures o eeciveness, and o consider how daa and assessmen can be used o
improve pracice in real ime and no jus deermine impac over ime. Te ederal
governmen mus also inves resources in raining is own sa on hese emerging
rameworks, and building he capaciy o is sa and he eld o urher rene and
improve upon he proposed rameworks.
o develop a common evidence ramework, he Deparmen o Educaions i3
evidence ramework is an imporan saring poin. Moving orward, he WhieHouse Domesic Policy Council and OMB, along wih he Council o Economic
Advisers, should work wih he Deparmens o Educaion, Labor, Healh and
Human Services, and Jusice and he Corporaion or Naional and Communiy
Service o develop his common ramework wihin one year. Te Whie House
and OMB should include he inpu and eedback rom criical hird paries o
develop a deeper evidence ramework ha can be embraced and applied by oher
agencies wihin various levels o governmen, as well as possibly by philanhropy
and he privae secor. Tis ramework mus consider addiional measures o
impac, as well as he relevance o conex, cos, and usabiliy.
Encourage greater implementation of tiered awards approach
Te ederal governmen should drive grans o hose organizaions wih he
sronges evidence o impac. An imporan approach o ampliy is he sraegy o
iered awards, so ha applicans wih greaer amouns o evidence are eligible
or larger ederal gran awards. Tis is criically conneced o he developmen o a
common evidence ramework described above. o implemen his kind o iered
awards approachas boh i3 and he Workorce Innovaion Fund haveagen-cies mus beter undersand he implemenaion challenges ha may resul.
Case in poin: Peer reviewers and agency sapanel moniors and peer review
rainerswill need o be well versed on he dieren eligibiliy requiremens and
The ederal
government
must support
eorts to
develop
additional
measures o
eectiveness,
and to consider
how data and
assessment
can be used
to improve
practice in real
time and not
just determine
impact over time.
7/30/2019 Social Sector Innovation Funds
39/56
rmmnans | www.amangss.
selecion crieria across he iers. And agency leaders will need o deermine a se
o policy guidelines ha incorporaes he challenges o muliple iers. Are here
muliple slaes rom which granees are seleced? Can applicans who are ineligible
or one ier be redireced o anoher ier by agency sa? Logisically, can individuals
review applicaions rom dieren iers? Answers o hese quesions alongside he
back-oce sysems needed o allow managemen fexibiliy across iers are essenial.
Anoher possible approach o consider is adding compeiive preerence poins or
applicans who demonsrae cerain levels o evidence and/or commi o a selec
se o approaches or daa collecion, analysis, and evaluaion ha will build an
evidence base over ime. Because he dierence in scores beween granees and
nongranees can be so slim, earning hese compeiive preerence poins can make
a signican dierence in who earns ederal grans.
Improve the peer review process
Te newly ormed Ineragency Working Group on Innovaion Funds (described
previously) should iniiae a process o ideniy weaknesses in he peer review
process and repor on needed improvemens wihin 180 days. Specically, he
Ineragency Working Group on Innovaion Funds should review and synhesize
how peer review is implemened in a range o agencies o beter undersand wha
approaches are currenly employed well and can serve as a model or oher agen-
cies. Tis review should, a a minimum, consider:
Te purpose o peer review Te use o iered applicaion and/or iered review processes26
Te recruimen and confics policy used o selec peer reviewers Te guidance, raining, and ongoing suppor provided o peer reviewers Te guidance, raining, and suppor given o panel moniors Te srucure and composiion o a ypical review panel How peer reviewers are recognized and compensaed or heir service Te general approach o public disclosure o peer reviewer names, scores, and
commen
An assessmen o he echnologies peer reviewers and agency sa are requiredo use.
Reviewing, scoring, and awarding innovaion und gran applicaions requires
a level o fexibiliy and argeed experise ha radiional agency sysems and
7/30/2019 Social Sector Innovation Funds
40/56
34 cn Aman pgss | Sal S innvan Funs
processes, oen or good reason, are ypically designed o limi. Te quaniy o
qualied reviewers required because o he scale o applicaions o innovaion
unds, coupled wih he broad range o experise required because o he ypically
broad range o issues eligible or unding under innovaion unds means ha nd-
ing enough qualiy peer reviewers is challenging.
Whas more, he deep experise required o eecively assess evidence o impac
and qualiy o proposed evaluaion plansbecause o he undamenal ocus on evi-
dence and evaluaion ha innovaion unds espousecoupled wih he diculy in
assessing experise in relevan compeencies such as scaling or innovaion, only adds
o he challenge o nding enough qualiy peer reviewers or innovaion unds.
Rehinking peer review processes, saring wih when hey should be used, and hen
deermining who should review and how, can dramaically change wha he govern-
men undersands as eecive and worhy o replicaion or scale, while mainaining
i no increasing he qualiy and objeciviy o he reviews. By more ighly managinghe review process, agencies can run large compeiive gran programs wih greaer
consisency and qualiy. Moving orward, he newly convened Ineragency Working
Group on Innovaion Funds should aciliae a comprehensive review o agency peer
review pracices and recommend acionable improvemens.
Better define the role of philanthropy and the private sector
Federal agency leaders implemening and/or designing innovaion unds should
specically ariculae he purpose o he privae secor engagemen hey seek
in heir requess or proposals.Te ederal governmen can more houghully
consider and dene he role o philanhropy and he privae secor in providing
leverage o governmen unds. A a minimum, uure innovaion unds should
be designed wih he inpu o philanhropic and privae-secor sakeholders, and
innovaion unds should aim o clearly sae he inended role o philanhropy/he
privae secor in achieving heir inended impac.
Specically, he purpose o philanhropic and privae secor engagemen may be:
o engage high-capaciy sakeholders in suppor o granee success o
srenghen he qualiy o proposed ideas and eors o creae local buy-in (and accounabiliy) ha can aciliae long-erm
susainabiliy
7/30/2019 Social Sector Innovation Funds
41/56
rmmnans | www.amangss.
o signal o ohers wha programs are o high qualiy and hereore worhy o
heir suppor and engagemen o provide needed and fexible unds o ge he immediae work a hand done
By ariculaing he purpose o he engagemen, program parameers can be beter
inormed and designed o help deliver he inended resuls, and privae-secorparners o all shapes and sizes can more meaningully engage in imporan inno-
vaion eors.
In ac, some innovaion und granees noed ha heir privae-secor parners are
oen more compelling advocaes o policymakers on he imporance o innova-
ion unds hen hey are hemselves. Leveraging he voice o commited privae-
secor parners may urher help secure imporan ederal innovaion eors.
Ensure the flexibility of private-sector matching funds
Philanhropic and privae-secor maching unds should have he fexibiliy o be
used as broadly as possible as long as he use remains consisen wih ha oulined
in he original gran applicaion. Social Innovaion Fund granees noe ha hey
are unable o use heir privae-secor maching unds or undraising aciviies
even hough he erms o heir grans will likely require exensive undraising in
order o mee he demands o he privae-secor mach requiremen. Oher gran-
ees noe ha he exensive reporing requiremens or ederal gran unds are also
applied o heir privae maching unds, which in urn has generaed signican
workload or heir organizaionsand someimes required addiional hiring
given he size o hese maches.
In order o urher incen philanhropic and oher privae-secor engagemen wih
ederal innovaion eors, i is imporan o proec he fexibiliy o hese nongov-
ernmen unds. Moving orward, agency leaders rom he Deparmen o Educaion
and he Corporaion or Naional and Communiy Service in paricular should
convene a cross-uncional eam o legal, communicaions, and policy expers o
deermine wha proacive seps can be aken o ensure appropriae fexibiliy or
philanhropic and oher privae-secor unds. Teir ndings should hen be broadlydiscussed wih oher agencies considering launching addiional innovaion unds.
7/30/2019 Social Sector Innovation Funds
42/56
36 cn Aman pgss | Sal S innvan Funs
Report annually on learnings from each innovation fund
and application of these learnings more broadly
Te Oce o Managemen and Budge should require all ederal agencies ha
hos an innovaion und o repor back annually on he ways in which he pro-
grams learnings are being shared and aced upon wihin he agency and wih oherappropriae ederal agencies. Hos agencies mus be willing o be a consumer o
he programs learnings, and inenionally consider how o leverage he learnings
rom innovaion programs o improve he work o oher agency programs.
Te hos agency o an innovaion und mus see he success o he und as ine-
gral o he success o he agency, and hereby prioriize learning rom he eor.
o aciliae qualiy implemenaion and key learning, he nus and bols o he
innovaion und mus be led by experienced agency ocials who have run qual-
iy, compeiive programs in he pas and can boh eecively manage he many
echnical inricacies o running such programs wih he abiliy o eecively com-municae progress and challenges o he res o he agency, Congress, OMB, he
Whie House, and a range o exernal sakeholders so maters can be resolved and
amplied wihou undue delay.
Wihou ha ype o dedicaed high-level agency leadership coupled wih expe-
rienced echnical agency implemening parners, innovaion unds will sruggle
o succeed inside mos agencies and will ail o disill learnings ha can be shared
and applied more broadly o oher agency programs and adminisraion priori-
ies. As curren innovaion unds maure, OMB and he Whie House should
work wih agency leaders o boh assess learnings and impac o hese respecive
innovaion unds, bu o also deermine how hese learnings and pracices can be
leveraged o srenghen broader agency or adminisraion eors.
One specic example o agency acion o encourage he ranser o ideas and
learnings rom innovaion unds o oher agency programs is happening a
he Deparmen o Educaion. Eors are underway o revise he Educaion
Deparmen General Adminisraive Regulaions, or EDGAR, o include he
evidence ramework used in he Invesing in Innovaion und. Tis change would
allow any Deparmen o Educaion program o adop his evidence rameworkwihou needing o go hrough he lenghy rule-making process..
7/30/2019 Social Sector Innovation Funds
43/56
rmmnans | www.amangss.
Better leverage data collection and evaluation results to communicate the
progress and learnings from innovation funds with critical stakeholders
In addiion o reporing on progress o OMB annually, each ederal agency wih
an innovaion und should creae a robus communicaions sraegy o convey he
value and poenial o hese unds o oher key sakeholders, including he broaderpublic. Innovaion unds would bene rom requen communicaions and
updaes o key sakeholders on he progress and learnings o heir programs.
In paricular, granees (and subgranees) will wan o recognize ha here is con-
siderable value o be gained rom eecive communicaion o heir early successes
and progress oward oucomes. As hese sories are shared wih policymakers,
philanhropy groups, oher praciioners, and he public, hey will help build an
undersanding o he innovaion unds poenial o achieve impac over ime.
Agencies would also do well o communicae how innovaion unds are con-ribuing o improved agency perormance across he board, and o share heir
lessons learned wih heir sakeholders. Boh agencies and granees will wan
o recognize ha proacive communicaions will have he mos value, and hey
will wan o plan accordingly o ensure hey have he capaciy o susain a robus
communicaions sraegy.
Furhermore, ederal governmen agencies mus develop a plan o suppor
access o and learning rom he evaluaions o innovaion und granees, in order
o inorm boh local communiy pracice and oher governmen agencies and
programs. One way o encourage his learning is o require ha publicly unded
eors make heir evaluaions publicly available, wih he appropriae precauions
aken o proec he privacy o any specic individuals. Te ederal governmen or
anoher inormed hird pary migh hen consider how hey can make his inor-
maion usable o a broader audience o praciioners and policymakers. All hree
innovaion unds discussed in his paper require granees o conduc hird-pary
evaluaions, bu here is no ye an ariculaed approach o how hese evaluaions
will be used o improve pracice and inorm decision-making more broadly.
Te newly convened Ineragency Working Group on Innovaion Funds shouldpropose an aligned approach or monioring progress on he ground and assessing
hard evaluaion resuls as hey come ogeher, synhesizing his inormaion and
presening i o criical audiences o improve learning and decision making.
Innovation u
would benef
rom requent
communicati
and updates t
key stakehold
on the progre
and learnings
their program
7/30/2019 Social Sector Innovation Funds
44/56
38 cn Aman pgss | Sal S innvan Funs
Better understand the support innovation fund grantees seek
Te ederal governmen mus assess he ypes o suppor innovaion und granees
need, and deermine he role o he ederal governmen versus ha o exernal par-
ies in providing ha suppor. Tere are limis o he level o suppor and hough
parnership he ederal governmen can provide any individual granee becausehe governmen is no designed o provide hands-on counsel o granees. Whereas
he Social Innovaion Fund leans on inermediaries o provide subgranees needed
suppor, he Invesing in Innovaion und requires granees o paricipae in commu-
niies o pracice, and oher programs such as Promise Neighborhoods rely on hird
paries wih relevan experise o provided suppor o curren and poenial granees.
Leaders rom he Deparmen o Educaion, he Corporaion or Naional and
Communiy Service, and he Deparmen o Laborideally hrough he newly
convened Ineragency Working Group on Innovaion Fundsshould consider
working wih a hird pary o proacively monior hese dieren approaches oimprove our undersanding boh o he ype o criical suppor innovaion gran-
ees need, as well as he bes arrangemens hrough which o provide ha suppor.
Continue to increase transparency of programs and processes
Fuure innovai