Pay-It-Forward Funding

Table of Contents

Introduction

A pay-it-forward program attempts to make the most sustainable use from public or other types of donations. Agreements are signed with benefactors, who in turn repay loans which feed back into the savings account of the fund, which can allow interest to be paid. Over time, as the loans are paid off, the fund can increase, and in turn help more people or organizations.

These types of programs can fund many things including

Education & Workforce instead of paying loan money to make rich people richer, students can repay a pay-it-forward fund so that future students can also gain education to help them enter successful careers.
Social Justice for example The Bail Project that focuses on evening the playing field of a justice system that costs poorer people more than their richer counterparts.
Sustainable improvements that save beneficiaries money over time, allowing them to use those savings to repay the program and expand it's impact.

Educational & Workforce Funds

"Pay It Forward Funds are place-based workforce funds that more sustainably invest in worker upskilling. They amplify the impact of public and philanthropic dollars by recycling funds to ‘pay it forward’ for future learners. Our Career Impact Bond financing equips learners to land good-paying jobs and businesses to invest in and retain diverse, skilled talent." - Social Finance: Pay-It-Forward Funds

Resources

Pay-It-Forward Revolving Funds: How to Start and Grow One - NASEO Finance Committee Meeting (PFD) Powerpoint explains how to start and grow a pay-it-forward revolving fund.

Organizations

North America

USA

The Bail Project 🧑‍⚖️"The Bail Project National Revolving Bail Fund is a critical tool to prevent incarceration and combat racial and economic disparities in the bail system."
RE-Volv ☀️ "Nonprofits save on average 15% or more on their electricity bills when they go solar with RE-volv. Through a Power Purchase Agreement or solar lease, RE-volv provides solar energy financing for community-serving nonprofits across the country.

As nonprofits pay back RE-volv, those payments are reinvested in our Solar Seed Fund, a one-of-a-kind, pay-it-forward revolving fund for solar for nonprofits."

The Bail Project - Freedom should be free.The Bail Project strives for a more perfect justice system, one that works for all people no matter their race or wealth. By providing free bail assistance to those in need, we restore the presumption of innocence, reunite families, and gather evidence for change. By advocating for better policies, we seek to take money out of justice and to create a pretrial system that is more just, equitable, and humane.

Colorado

Colorado Pay It Forward Fund "provides different kinds of financing for learners, training providers, and employers. For each kind of financing, all loan repayments are recycled back into the fund to support future learners."

Florida

United Way Miami Workforce Project is a pilot program "to upskill Miami residents for in-demand jobs that lead to economic mobility. The pilot enabled people with low incomes in Miami-Dade County—especially veterans, people of color, and single female heads of household—to enroll in 4Geeks Academy, a coding bootcamp that provides technical training, mentorship, and career support."

New Jersey

New Jersey Pay It Forward Program "provides zero-interest, no-fee loans for participants to enroll in high-quality job training, especially those who may not have the savings to pay for training or the credit history for a loan. Participants pay no upfront costs and receive living stipends and supportive services including access to emergency aid funds and mental health counseling to help them succeed."