The Pay for Success Fund is supporting the Bridge House, Ready for Work project, a long term transitional employment program that seeks to help people experiencing homelessness or incarceration reattach to employment and independent housing.
Led by Bridge House, the Ready to Work project aims to restore dignity and create a path for self sufficiency. Based on a “work first” model, the program seeks to combat homelessness using a “three-legged stool” approach—meaningful employment, transitional housing and case management. Once eligibility requirements have been met, trainees can officially begin the holistic approach:
• Work: Trainees are hired in one of two social enterprises—outdoor crew, engaging in street and trail clean up and landscaping services; or Community Table Kitchen, receiving hands-on training in a commercial kitchen learning how to prepare meals.
• Housing: The House and Employment Center provides dormitory style housing for men and women. Trainees pay a portion of their gross income for room and board, laundry, uniforms, meals, and a public transit pass. They are also required to create a savings account.
• Case Management: Graduates are offered up to 12 months of aftercare to track their success and offered continued support, including cognitive behavioral therapy and treatment support groups. At the heart of all Bridge House services is a core belief that, when given an opportunity, adults experiencing homelessness can and will leave the street behind.
Starting July 2021, our investment will finance Bridge House as it serves 135 existing and 44 additional Ready to Work annual enrollees. enrollees. The outcomes to be measured for this project include graduation from a year-long training program by attaining placement in a permanent job and independent housing, 6-month retention post-graduation and 12-month retention. These outcomes will be measured and paid upon at four points during the four-year loan term.
The Pay for Success project is facilitated by NPX, a company transforming the way nonprofits are funded by explicitly linking capital with results. NPX works with individual donors and family foundations to provide funds and leverage the power of donations. The project follows NPX’s Impact Security structure, which is a performance-based debt security that links payment obligations to impact. The Impact Security is similar to a social impact bond (SIB), but with private philanthropists serving as the outcome payor instead of the government.
As outcomes are achieved by Bridge House and independently verified, funding is released to the nonprofits from an outcomes fund—the Colorado Donor Impact Fund (DIF)—managed by NPX and supported by donations from 13 philanthropists and foundations. The investment capital raised provides the nonprofits with multiple years of flexible working capital to run their programs. Reinvestment Fund is the primary investor in this project.
Learn more about our Pay for Success Program.