April 2019: Instiglio

Abstract

Results-based financing (RBF) mechanisms are financial instruments in which funders pay a pre-agreed price for services delivered by implementers. This article recommends a grant to Instiglio, an organization that assists in the technical design of RBF mechanisms. It argues that RBF mechanisms can potentially encourage funders to make decisions based on verifiable results, leading to increased cost-effectiveness. However, it also raises concerns about the lack of evidence for some common arguments in favor of RBF and the potential for lower cost-effectiveness compared to alternative funding mechanisms. The article concludes that the grant is justified due to the potential benefits of participating in the design of the fund and the opportunity to test the usefulness of GiveWell’s style of analysis to other major funders. – AI-generated abstract.