Mutual benefits of payment-by-results

After months of research and planning, Max Foundation is excited to announce that it will be implementing a new payment-by-results (PBR) method for all Max-WASH II projects starting early August 2017. So, what is PBR? Simply put, it is exactly how it sounds: partner organisations are paid according to the results they deliver. It is a method that not only matches our entrepreneurial approach to aid, but also offers mutual benefits for both Max Foundation and our partner NGOs. Using a PBR method will lead to a different way of working together with partners. By first supporting partner NGOs in delivering results and then compensating them for their hard work, they become more empowered to invest and grow their own funding. In turn  since we can only pay once the results have been clearly verified  we gain valuable insight for our own monitoring and evaluation and benefit from their local expertise. Altogether, we expect PBR to increase everyone’s focus on delivering pre-defined results.

Nevertheless, we recognize that implanting such a method is not so simple. It requires careful consideration, realistic expectations, and a suitable approach for each unique situation. PBR is widely unknown in the WASH sector and the few attempts that have been made by other organisations have been criticized for an overly strict, top-down approach. The Max PBR method will be different. For starters, payment will not be based on numbers alone. Our partners will continue to receive basic funding and will be further rewarded for their achievements. The Max PBR method sets clear expectations and guidelines while offering partners the flexibility to determine the best approach for them. 

Not only that, PBR also gives both Max Foundation and the partner NGO the opportunity to scale up. “By placing even more confidence in the local organisation’s expertise, we can enter unknown areas and implement new Max WASH projects more effectively,” adds our PBR specialist and intern, Rebecca Cadman. 

Back to news overview