Outcome-Based Funding is a financial model that allocates resources based on the results achieved rather than the inputs or activities undertaken. This approach is often used in sectors like education and healthcare, where funding is tied to specific performance metrics, such as graduation rates or patient health outcomes. The goal is to incentivize organizations to improve their services and achieve better results for their clients. In this model, organizations are evaluated on their effectiveness in meeting predetermined goals. For example, a school may receive more funding if it successfully increases its student graduation rates. This system encourages accountability and ensures that public funds are used efficiently to achieve positive outcomes for the community.