SCALE SUSTAINABILITY IMPACT We invest in the best so they can reach the most.
ANNUAL REPORT 2012–2013
What kind of IMPACT could we DRIVE if we surrounded the TOUGHEST social problems with a NETWORK of the most DYNAMIC entrepreneurs, the most PASSIONATE philanthropists, the most INNOVATIVE partnerships, and the most COMMITTED allies? The answer may INSPIRE you.
Table of Contents Welcome Approach
01 09
2 Welcome 5 Update from the Board Chair 6 Board of Directors 7 A New Strategic Collaboration 11 Our Approach 12 Our 2012-13 Investment Selection Process 14 Case Studies of Impact 16
SPOTLIGHT ON GROWTH CAPITAL & IMPACT
18
SPOTLIGHT ON LEADERSHIP
20 SPOTLIGHT ON DIRECT IMPACT 22 SPOTLIGHT ON WIDESPREAD IMPACT 24 SPOTLIGHT ON PORTFOLIO EXIT
26 Domain Approach 27 PATHWAYS 28 REIMAGINE LEARNING 29 EARLY CHILDHOOD EXPERIENCE
30 America Forward
Development Financials Portfolio
35 41 45
32 Gathering of Leaders 36 Review of Giving 37 Investors 39 Supporters 39 Partners 43 Financials
46 Portfolio Directory ACELERO LEARNING ACHIEVEMENT FIRST* THE ACHIEVEMENT NETWORK AVANCE BUILD* COLLEGE ADVISING CORPS COLLEGE POSSIBLE COLLEGE SUMMIT EDUCATORS 4 EXCELLENCE EYE TO EYE FAMILY INDEPENDENCE INITIATIVE FIRST PLACE FOR YOUTH FOODCORPS GENESYS WORKS HEALTH LEADS IMENTOR
54 Past Investments
KIPP LIFT MANAGEMENT LEADERSHIP FOR TOMORROW THE MISSION CONTINUES NEW CLASSROOMS NEW LEADERS NEW TEACHER CENTER PEACE FIRST PEER HEALTH EXCHANGE ROCA SINGLE STOP TEACH FOR ALL TURNAROUND FOR CHILDREN YEAR UP YOUTHBUILD USA *Exited the portfolio in 2013
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01
Welcome Title
01 NEW PROFIT ANNUAL REPORT 2012–2013
Welcome This exciting moment in New Profit’s history demands that we slightly bend the normal Annual Report rules. With New Profit in the midst of an impact evolution, this year’s report will not only look back at New Profit’s annual progress, but will also look forward towards exciting initiatives on New Profit’s horizon. We have had remarkable success in helping 44 of the most innovative social enterprises in the country, such as Teach For America, KIPP, The Mission Continues, and Year Up, increase their impact in areas that shape social mobility. And we are not stopping now. As part of a concerted effort to continue pioneering the venture philanthropy approach, we are exploring new frontiers of social innovation and systemic change.
PHOTO: iMENTOR
In 2013, we set the stage for the impact evolution with some exciting progress on our core work in the investment portfolio. Highlights from 2013 include: The Pathways Fund | Our six Pathways Fund organizations reported New Profit strategic support had measurable impact on their organizational capacity in several areas, especially evaluation, growth, and leadership development. Additionally, this strategic support has led to significant organizational learning, extending beyond the national headquarters to the program site level.
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WELCOME
Deloitte Collaboration | We launched a multimillion dollar collaboration with Deloitte following its acquisition of our longtime partner, Monitor Group. This has allowed us to tap the vast expertise of the company’s staff to the benefit of our portfolio organizations. Thanks to Deloitte’s extraordinary generosity, we are providing stronger support, including strategic and financial planning and evaluation, to help organizations achieve greater scale, sustainability, and impact than ever before. Investments | We welcomed five new organizations into our portfolio: The Achievement Network, Educators 4 Excellence, Eye to Eye, FoodCorps, and New Classrooms. We also invested in Roca, Inc. through the Massachusetts Juvenile Justice Pay for Success Initiative (see below) and reinvested in New Teacher Center. In 2014, we have continued the core work and also have made a leap towards new approaches. Highlights from 2014 include: Investments | We are proud to have reinvested in Family Independence Initiative and Management Leadership for Tomorrow. Domains for Aligned Impact | The success of the Pathways Fund raised a tantalizing prospect: could New Profit drive greater impact in other areas using this coordinated and collaborative approach with small groups—or “domains”—of high-performing social enterprises? The big potential opportunity led us to evolve Pathways and work with donors, organizations, and thought leaders to explore domains in other
areas, including Early Childhood Experience and Reimagine Learning (focused on learning differences and social-emotional learning areas). Pay for Success | New Profit helped develop and fund the Massachusetts Juvenile Justice Pay for Success Initiative, a landmark effort to combat prison recidivism for at-risk young men. The “Pay for Success” model involves government incentivizing private sector investment groups to provide funding for social service programs. It is a powerful new way to direct public resources to proven, higher-impact programs. America Forward, our nonpartisan policy initiative, has been instrumental in raising awareness of its potential in Washington and beyond—including playing a major part in the Pay for Success components of the Workforce Innovation and Opportunity Act (WIOA), which was signed into law this past summer. The 10th Annual Gathering of Leaders | Our 2014 Gathering of Leaders was our most dynamic convening of social entrepreneurs to date. The discussion centered on the evolving forces and new opportunities that will shape our new bets on the future of social innovation and creating large-scale change. You’ll read much more about these issues in the following pages, but we also hope you’ll stay connected to us through our website, blog, Facebook, Twitter, and—of course—in person! Gratefully,
DOUG BORCHARD
VANESSA KIRSCH
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NEW PROFIT ANNUAL REPORT 2012–2013
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WELCOME
Update from the Board Chair Innovation. Investment. Impact. The work we do at New Profit to fulfill our mission can be distilled down to these three words. As Board Chair, and a long-standing member of the Board of Directors, I have had the pleasure of being a part of this innovative enterprise and witnessing its growing impact. New Profit has been able to identify, guide, and scale many of the nation’s leading social entrepreneur-led organizations; these pathbreaking entities have had a significant impact on some of our nation’s most difficult social challenges. Yet, the vast majority of dynamic problem-solving organizations lack the resources to acheive financial stability as they work toward systemic change. New Profit’s financial investment in these entrpreneurial endeavors and its strategic advisory assistance helps set them on a path of greater scale and success. My fellow board members and I are delighted to support New Profit’s strategic model because we have witnessed the return on our investment through measureable outcomes.
“ The Board and I are delighted to support New Profit’s strategic model because we have witnessed the return on our investment through measureable outcomes.” JOSH BEKENSTEIN MANGING DIRECTOR, BAIN CAPITAL BOARD CHAIR, NEW PROFIT INC. INVESTOR SINCE 2002 BOARD MEMBER SINCE 2004
We see the opportunities for greater impact that can be achieved with the help of additional philanthropic partners. To that end, in 2012 the Board approved a strategic campaign for New Profit. The goal for this three year campaign is $125M. Board members are actively involved in reaching out to other philanthropic leaders to join us in supporting New Profit. As you read through this Annual Report, I hope you get a sense of the profound impact we are seeing daily and the systemic change we envision. Sincerely,
JOSH BEKENSTEIN BOARD CHAIR, NEW PROFIT INC.
PHOTO: NEW TEACHER CENTER
WELCOME
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Board of Directors New Profit’s Board of Directors is a vibrant body of innovative leaders and philanthropists from an array of industries. Their experience and expertise across the banking and finance, consulting, education, health, philanthropy, private equity, and social services sectors brings a wealth of knowledge and insight to our mission. Each of them is passionate about driving impact and increasing opportunity and social mobility across our nation. We are deeply grateful to these champions of our cause.
Josh Bekenstein (Chair)
Kristin Mugford
Managing Director, Bain Capital
Senior Lecturer, Harvard Business School
Ed Cohen
Mark E. Nunnelly
President, Carlin Ventures, Inc.
Managing Director, Bain Capital
Paul Edgerley
Jim Pallotta
Managing Director, Bain Capital
Chairman & Managing Director, Raptor Capital Management
Paul S. Grogan
Elizabeth Riley
President & CEO, The Boston Foundation
Adjunct Professor, Babson College
David Harris
Barry Salzberg
Provost and Senior Vice President, Tufts University
Global CEO, Deloitte Touche Tohmatsu Limited
Stephen M. Jennings
Brian Spector
Principal, Strategy & Operations, Monitor Deloitte
Partner, The Baupost Group LLC
Vanessa Kirsch
Jeffrey C. Walker
Founder & CEO, New Profit Inc.
Chairman, MDG Health Alliance-CHW
Henry McCance Chairman Emeritus, Greylock Partners
Bill McClements SVP, Corporate Operations, Merrimack Pharmaceuticals
Special thanks to the following past board members who served during the period covered in this annual report. Greg Avis, Founding Managing Director, Summit Partners Dr. Michael Lomax, President & CEO, United Negro College Fund Laurene Sperling, Sperling Family Charitable Foundation
Duncan M. McFarland The Bromley Charitable Trust
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WELCOME
A New Strategic Collaboration “ We look forward to building on the tremendous achievements that Monitor Group and New Profit have accomplished over the past decade. Deloitte strongly believes that one of the best ways we can drive social change is to do what we do best every day—provide our services and intellectual capital to solve urgent challenges. The New Profit and Deloitte relationship exemplifies a powerful public-private model to address community needs.” MIKE CANNING, PRINCIPAL, DELOITTE CONSULTING LLP AND NATIONAL MANAGING DIRECTOR FOR DELOITTE’S STRATEGY & OPERATIONS PRACTICE.
After more than a decade of collaboration between New Profit and Monitor Group, Monitor was acquired by Deloitte LLP in January, 2013. The following June, New Profit and Deloitte announced a multi-million dollar collaboration to continue and deepen the relationship, supporting the growth and increasing the impact of groundbreaking solutions in education, workforce development, public health, and poverty alleviation. As part of the collaboration, Deloitte provides strategic advisory services for New Profit and our portfolio organizations. The pro bono work with New Profit is part of Deloitte’s commitment to provide $60 million in pro bono services to nonprofit organizations over a three-year period (FY2012-2014). Deloitte is investing the time and talent of its people to strengthen communities across the country. The $60 million pledge, committed in April 2012, brought the organization’s total investment to more than $110 million. Deloitte is one of the most philanthropically-minded businesses in the world and we are proud to be working with them. By leveraging the best of what both organizations have to offer, our collaboration will significantly enhance our ability to drive innovation, outcomes and scale in the social sector. We are grateful to have the opportunity to work with and benefit from Deloitte’s world-class resources.
WELCOME
TOP: NEWS OF THE NEW PROFIT AND DELOITTE COLLABORATION ON THE PR NEWSWIRE BILLBOARD IN TIMES SQUARE, JUNE 2013. BOTTOM: BARRY SALZBERG, GLOBAL CEO OF DELOITTE TOUCHE TOHMATSU LTD., SPEAKING AT THE 2013 GATHERING OF LEADERS. BARRY IS NOW A MEMBER OF NEW PROFIT’S BOARD OF DIRECTORS.
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Inclusion in this network means you’re always learning and always growing. Being a part of New Profit is a validation of your work and a challenge to take it to the next level. MIKE O’BRIEN CEO, iMENTOR New Profit portfolio organization since 2009
02
Approach Title
09 NEW PROFIT ANNUAL REPORT 2012–2013
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IMAGE: XXXXXXXXXXXXXX
APPROACH
Our Approach New Profit is a nonprofit social innovation organization and venture philanthropy fund seeking to increase social mobility by accelerating the best ideas across the nation. With the partnership of our philanthropic investors, we support social entrepreneurs in growing their impact in education, workforce development, public health, poverty alleviation, and other levers of social mobility: •• We INVEST financial and intellectual capital in a portfolio of social entrepreneurs and help them to grow their organizations, increase the scale and quality of their impact, expand their networks, and transform their fields. •• We BUILD communities of leaders from all sectors around bold visions emerging from portfolio entrepreneurs, and craft the collective, systemschanging agendas to fuel their social innovations. The Gathering of Leaders is our signature platform for this work. •• We STRENGTHEN ecosystems for social innovation. Our nonpartisan America Forward initiative shapes public policy platforms and drives advocacy campaigns that release the potential of social innovation. We also participate in research and development on next-generation ideas, including a Pay for Success pilot and other initiatives to grow the human and financial capital necessary to solve pressing social problems. OPPOSITE PAGE: FROM TOP LEFT: TEACH FOR ALL, GENESYS WORKS, ACHIEVEMENT FIRST, FIRST APPROACH PLACE FOR YOUTH, HEALTH LEADS, COLLEGE POSSIBLE, AND SINGLE STOP. THIS PAGE: FROM TOP: EDUCATORS 4 EXCELLENCE, NEW TEACHER CENTER, FAMILY INDEPENDENCE INITIATIVE. Photo credit belongs to each organization
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Our 2012-13 Investment Selection Process We connect with approximately 250 organizations a year. •• The 250+ individuals who are a part of our Investment Referral Network send promising social entrepreneurs our way. •• We conduct Discovery Conversations with high potential social entrepreneurs to learn about their organizations and to educate them about New Profit. •• Many organizations reach out to us directly to find out if they could be a match for an investment.
In Fall 2012, we formally opened our Letter of Inquiry (LOI) process, and we received more than 90 applications for funding.
At the conclusion of Reading and Ranking, we advanced 15 organizations into our Screening process.
•• The LOI provides us with critical information about candidate organizations to help us make informed decisions about which organizations should advance to our subsequent investment selection rounds.
•• During Screening, we explore our early hypotheses about the risks and strengths of each deal through dialogue with the organizations’ social entrepreneurs.
•• Through our Reading and Ranking process, each LOI is carefully evaluated by no less than three New Profit readers. •• LOIs are scored across more than 10 dimensions of our Investment Selection Criteria. •• Using a combination of art and science, measurement, and evaluation, we identify the highest potential candidates.
•• We also begin to conduct landscape analysis to understand where each organization fits within the broader ecosystem. •• We provide coaching and mentoring to social entrepreneurs to present an effective pitch to the New Profit board during either Screening or Due Diligence.
15
~90
~250
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Five organizations were selected for Due Diligence. •• Due Diligence entails a deep analysis of an organization’s program and economic model, strategy, leadership, and overall fit with New Profit. •• Data collection occurs through review of primary documents; a series of interviews with the social entrepreneur, senior staff, and key stakeholders; and site visits. •• Our goals are to gain a multi-faceted understanding of the organization and to orient the social entrepreneur to the high-touch New Profit engagement model.
5
Finally, with the addition of our reinvestment in New Teacher Center we presented the board with six organizations. THE ACHIEVEMENT NETWORK works alongside school leadership teams to strengthen their schoolwide practice and culture of using learning standards and achievement data to get breakthrough results for students in underserved communities.
EDUCATORS 4 EXCELLENCE (E4E) is a teacherled organization that elevates the profession by giving classroom teachers a meaningful voice in the creation of policies that impact their careers and their classrooms. E4E works uniquely within the system, building a broad movement and empowering educators to help create better policy and advocate for its implementation.
EYE TO EYE, the only national LD/ADHD organization and movement dedicated to mentoring, pairing high school and college students with elementary and middle schoolers.
FOODCORPS is a nationwide team of AmeriCorps leaders who connect kids to real food and help them grow up healthy. These leaders are in limited-resource communities for a year of public service where they teach hands-on lessons about food and nutrition, build and tend school gardens, and teach cooking lessons; and help change what’s on lunch trays, giving kids healthy food from local farms.
NEW CLASSROOMS designs new instructional models that reimagine the role of educators, the use of time, the configuration of physical space, and the use of data and technology to better meet the needs of each student.
NEW TEACHER CENTER partners with states, school districts, and policymakers nationwide to advocate for, design, and implement research-based, high-quality induction, mentoring and professional development programs that build leadership capacity, improve teacher retention, and help close the achievement gap in our nation’s schools. NTC also works to improve teaching conditions to transform schools into vibrant learning communities where all students succeed.
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NEW PROFIT ANNUAL REPORT 2012–2013
Case Studies of Impact How did your partnership with New Profit strengthen your organization In the next few pages, we spotlight five of our portfolio organizations, asking the social entreprenuers this question. Each was chosen as an example of a different area of New Profit support—Leadership, Direct Impact, Widespread Impact, and Growth Capital & Impact—as well as an example of a successful portfolio exit. While New Profit continues its tradition of broadly supporting social entrepreneurs and their organizations get to impact, scale, and sustainability, we focus our most intentional and strategic services on these areas.
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Growth Capital & Impact New Teacher Center
Leadership Achievement First
Direct Impact iMentor
Widespread Impact Health Leads
Portfolio Exit Stand for Children
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NEW PROFIT ANNUAL REPORT 2012–2013
Spotlight on Growth Capital & Impact Working with New Teacher Center Can you describe NTC’s scale and impact before you started working with New Profit? ELLEN MOIR: NTC was founded in 1998 as part of University of
California, Santa Cruz (UCSC) and operated as part of the university SOCIAL ENTREPRENEUR Ellen Moir
until 2009. NTC spent this time honing its now gold-standard
MISSION To improve student learning by
teacher development model, which is built upon a strengths-
accelerating the effectiveness of new teachers and school leaders. MODEL New Teacher Center partners with
states, school districts, and policymakers nationwide to advocate for, design and implement research-based, high-quality induction, mentoring and professional development programs that build leadership capacity, improve teacher retention, and help close the achievement gap in our nation’s schools. NTC also works to improve teaching conditions to transform schools into vibrant learning communities where all students succeed.
based approach to teaching and learning that focuses on meeting the academic, social, and emotional needs of all learners. NTC has always been focused on improving teacher practice, teacher retention, and student learning for underserved students in the U.S.
How did your partnership with New Profit help NTC? ELLEN MOIR: New Profit was instrumental in helping NTC spin out of
UCSC to become an independent nonprofit. When we spun out of UCSC we had to focus on building an operational infrastructure— up until then, the University had supplied NTC’s finance, HR, IT
FOUNDING DATE 1998
and operations department. New Profit helped us understand how
INITIAL YEAR OF INVESTMENT 2010
to build our infrastructure and invested the funding to do it. New
INVESTMENT AMOUNT TO DATE $1,708,000
Profit also pushed us to examine and demonstrate our impact on student learning. Finally, New Profit has held a seat on NTC’s Board of Directors and our New Profit Board members have had a tremendous impact on NTC’s thinking and strategy over the years.
What is the state of NTC’s impact now? ELLEN MOIR: New Profit’s investment of financial and intellectual
capital helped NTC build the infrastructure we needed in order to operate as an independent 501(c)(3) while maintaining the high quality of our program. Specifically, NTC was able to invest in capacity-building areas like communications, IT, development, and operations, all of which have been critical in getting NTC to
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where we are today. New Profit’s support has helped NTC go from
APPROACH
a proven program model with little back-end infrastructure to a $30M nonprofit that reached 23,000 new teachers in 2012-13 and prepares us for further growth. In 2011-2012, New Profit collaborated with the Monitor Institute and NTC to develop a strategic plan aimed at growing NTC’s reach
WHAT COULD THE FUTURE LOOK LIKE FOR NEW TEACHER CENTER? NTC expects to make significant progress towards its goal of ensuring that all children in America get the excellent teacher they deserve by serving 16% of all first and second year teachers and 30% of the largest urban districts in the US by 2017.
and impact to reaching 60,000 new teachers annually by 2018. This strategic planning process and New Profit’s role in it have been invaluable. Recently, New Profit generously reinvested in NTC to support our next phase of growth. This reinvestment process really helped us catapult our growth capital campaign. We have built marketing, fundraising, and human resource operations engines that are allowing us to grow our model across the country and attract the best talent
WHAT IS YOUR FAVORITE PART ABOUT WORKING WITH NEW TEACHER CENTER? Despite their massive scale, they are still remarkably nimble. Case in point: while they exited out of UCSC, they took on a rigorous evaluation of all their contracts to determine the wisest to renew to achieve the greatest impact. They did this all while shoring up their evidence base and restructuring to drive the most efficiency and consistency across the organization.
to do the best work in helping teachers move from novice to excellent. We couldn’t be more excited to continue partnering with New Profit to improve student learning for underserved students across the country.
What is your favorite part about working with New Profit and your Deal Partner, Shruti Sehra? ELLEN MOIR: Two things we love about working with New
Profit are having a partner on our Board of Directors and New Profit’s community. The contributions of the former have
WHAT IS YOUR FAVORITE PART ABOUT WORKING WITH ELLEN MOIR? Ellen Moir is one of the most self-aware and learningand growth-oriented leaders I have ever met! I admire and am inspired by watching as she evolves her own leadership to meet the needs of the ever-changing and growing NTC. She is a model for what we look for in leadership and I’m honored to be able to work with her.
Shruti Sehra PARTNER, NEW PROFIT
been priceless, especially in strategic planning, raising growth capital, and measuring student learning. It’s also been great to learn from, collaborate with, and be inspired by the other leaders and organizations in New Profit’s portfolio. Shruti is an amazing thought partner and ambassador for NTC. Whether it’s her energy at our board meetings, her help in thinking about challenges that I as a CEO face, or her sharing her enthusiasm for NTC with other potential partner organizations and funding partners, it is so valuable—and fun!—to have Shruti by my side.
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NEW PROFIT ANNUAL REPORT 2012–2013
Spotlight on Leadership Working with Achievement First Can you describe Achievement First’s scale and impact before you started working with New Profit? DOUG MCCURRY & DACIA TOLL: When Achievement First was
welcomed into the New Profit portfolio in 2007, we were operating SOCIAL ENTREPRENEURS
Doug McCurry & Dacia Toll MISSION To deliver on the promise of equal
educational opportunity for all of America’s children. We believe that all children, regardless of race or economic status, can succeed if they have access to a great education. Achievement First schools provide all of our students with the academic and character skills they need to graduate from top colleges, to succeed in a competitive world and to serve as the next generation of leaders in our communities. MODEL Achievement First’s network of
K-12 public charter schools provides an unwavering focus on achievement, a rigorous common core aligned curriculum, strategic use of data, comprehensive teacher development, and best-in-class support to assist principals in driving student gains.
12 schools and serving approximately 2,500 students, and we sought financial capital and strategic support from New Profit to strengthen our overall organizational capacity and effect larger systemic change. Among the many investments critical to scaling with excellence, Achievement First and New Profit agreed that we needed to focus on strengthening leadership at all levels of the organization in order to better coordinate the expertise, services and supports needed to operate an increasing portfolio of schools in a sustainable and replicable way.
How did your partnership with New Profit help Achievement First? DOUG MCCURRY & DACIA TOLL: Over the course of our multi-year
partnership, New Profit became one of Achievement First’s top strategic advisors. Through leadership coaching and strong board
FOUNDING DATE 1998
governance, New Profit helped us take a disciplined and thoughtful
INITIAL YEAR OF INVESTMENT 2007
approach to choosing among the many opportunities created by
INVESTMENT AMOUNT TO DATE $2,900,000
the ever-changing education reform environment. New Profit also provided strategic support to improve our organizational design and structure for long-term growth, with a focus on building leadership capacity and implementing talent development pathways. Achievement First’s resultant network model, is one of our greatest organizational assets. Additionally, at the school level, our partnership with New Profit helped us to implement the talent development pathways needed to stabilize our principal cohort (resulting in three consecutive years of at least 90 percent network retention), to achieve our goal of having 1.5 principals-in-residence
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for every projected school opening, and to build a Teacher Career Pathway that is nationally recognized as one of the most promising teacher evaluation and career paths in the country.
What is the state of Achievement First’s impact now? DOUG MCCURRY & DACIA TOLL: Achievement First is both
bigger and stronger than when we joined the New Profit portfolio seven years ago. Currently serving more than 8,100 students across 25 schools, on our way to operating 38+ schools serving more than 12,000 students, our network will soon be larger than 95 percent of U.S. public school districts. As a result of our focus, with New Profit’s support, on achieving a more sustainable and replicable type of quality, Achievement First’s current scale and results can be leveraged to drive broader change. In fact, in March 2014, we launched the Charter
HOW LONG HAVE YOU BEEN AT NEW PROFIT? Since January, 2005. WHAT HAS BEEN YOUR FAVORITE PART ABOUT WORKING WITH ACHIEVEMENT FIRST? Working with leaders and a team that is utterly and completely committed to closing the achievement gap in this country, and is relentless in working to improve everything that it does. WHAT MAKES DACIA AND DOUG STRONG LEADERS? Their deep commitment to AF’s core mission is evident in everything they say and do and is inspiring and motivating for everyone who touches AF—team members, board, donors, students, and parents. Their appetite for constant learning and improvement, and their capacity to reflect honestly on their own and the organization’s strengths and challenges is extraordinary.
Doug Borchard MANAGING DIRECTOR, COO, NEW PROFIT
Network Accelerator, a year-long, cohort-based training program that leverages best practices from Achievement First and other high-performing charter management organizations (CMOs) to empower leaders of young CMOs to successfully scale their organizations in a shorter timeframe.
What is your favorite part about working with New Profit? DOUG MCCURRY & DACIA TOLL: Achievement First shares
New Profit’s belief that we must maximize our collective impact, and for this reason, community-building and learning events, such as the annual Gathering of Leaders, are one of our favorite benefits of membership in the New Profit portfolio. Motivated by this shared belief, we created a dedicated Team Partnerships in 2010, charged with more intentionally and aggressively pursuing opensource sharing and strategic partnerships, such as the Charter Network Accelerator, as a means to accelerate change for children, families and communities.
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NEW PROFIT ANNUAL REPORT 2012–2013
Spotlight on Direct Impact Working with iMentor Can you describe iMentor’s scale and impact before you started working with New Profit? MIKE O’BRIEN: Before New Profit, iMentor was serving 1,000
students in a single city. This year, iMentor is serving 5,000 SOCIAL ENTREPRENEUR Mike O’Brien
students in 15 communities across the country. iMentor has also
MISSION iMentor builds mentoring
focused its model on a single outcome, college success, and
relationships that empower students from low-income communities to graduate high school, succeed in college, and achieve their ambitions.
is demonstrating significant increases in college entrance and
MODEL iMentor runs a direct service, high
How did your partnership with New Profit help iMentor?
school-based program in New York City that partners with schools in low-income communities to match every student with a mentor. Mentors help students prepare for college and graduate with a degree. iMentor also has a fee-for-service partnership program that provides everything a nonprofit needs to run an effective program in the iMentor model. FOUNDING DATE 1999 INITIAL YEAR OF INVESTMENT 2009 INVESTMENT AMOUNT TO DATE $4,053,478
persistence rates for participating students.
MIKE O’BRIEN: New Profit has made tremendous contributions
to iMentor’s growth and evolution. iMentor’s deal partner, Doug Borchard, has worked with the organization every week for the last five years. Doug is an influential Board member and a critical thought partner to our senior team. iMentor was selected for inclusion in New Profit’s Social Innovation Fund portfolio. A team of dedicated pro bono consultants from Monitor supported the creation of iMentor’s 2013-2018 strategic plan. iMentor has also received pro bono leadership development support from the New Profit talent team. New Profit has introduced iMentor to a number of new funders. Perhaps most importantly, New Profit has connected iMentor to a network of incredible social entrepreneurs, whose example and expertise has pushed iMentor’s learning and evolution farther and faster than we ever thought possible.
What is the state of iMentor’s impact now? MIKE O’BRIEN: New Profit has supported iMentor in the development
of two five-year strategic plans, each of which included successful growth capital campaigns ($8M and $27.5M, respectively). These plans ensured the capital and strategic rigor necessary for iMentor
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to scale its programs nationally, while maintaining the quality of its programming and increasing its impact on students. Over the
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next five years, iMentor aspires to serve 20,000 new students. By partnering with high schools and matching every student in the school with a college-educated mentor, iMentor is leveraging the community to create a more personalized and proactive counseling model in schools. iMentor seeks to demonstrate that a serious and sustained investment in the non-academic supports for students translates into significantly better college outcomes. iMentor’s commitment to data and ongoing evaluation positions the organization to contribute to the national conversation on improving college outcomes for first-generation students. iMentor seeks to share what it is learning with all of its peers and partners in this work.
What is your favorite part about working with New Profit? MIKE O’BRIEN: New Profit is an ever expanding network of
hard driving social entrepreneurs with big hearts and big brains. This is true of all of the people you meet—New Profit staff, portfolio organizations, investors, and public sector partners. Inclusion in this network means you’re
HOW LONG HAVE YOU BEEN AT NEW PROFIT? Since October, 2011. I was also part of the idea team that strategized the founding of New Profit. WHAT COULD THE FUTURE LOOK LIKE FOR iMENTOR? The future could look like a robust network nationwide of iMentor partnerships and successful replication to cities in multiple geographies. It could look like thousands of disadvantaged high schoolers across the country forming lifelong bonds with a college educated adult who cares passionately about their educational and career success. And I think that future will continue to evolve as iMentor pursues the additional goal of college persistence, on top of high school graduation. WHAT HAS BEEN YOUR FAVORITE PART ABOUT WORKING WITH iMENTOR? Mike O’Brien is a highly engaged member of the Pathways community. He never shys away from direct feedback and he’s willing to take on leadership in a variety of formats within the network. I think additionally, it’s been really exciting to watch the ways in which the iMentor technology platform can be leveraged against other program models in the Pathways Fund. It’s been encouraging to watch those collaborations unfold.
always learning and always growing. Being a part of New Profit is a validation of your work and a challenge to take it to the next level. Doug Borchard sits on our board, he matches an incredible expertise in the sector with a curiosity, humility, and humor that serves as the foundation for all of our work together. He has been one of my most influential thought partners over the last five years. In all of our work together, I am supported and challenged. With the Pathways Fund, we have also had the opportunity to work closely with Tulaine Montgomery. Tulaine has done an incredible job of building relationships and facilitating
WHAT MAKES iMENTOR A GOOD EXAMPLE OF SUCCESSFUL DIRECT IMPACT? I think their consistent track record of growth in New York City and their willingness to innovate in order to better serve the students in their programs. With the help of Pathways funding, iMentor has been able to expand to twelve new schools in New York, establishing three and four year programs serving 2,570 students as of this quarter.
Tulaine Montgomery PARTNER PATHWAYS FUND NEW PROFIT
collaboration among all six Pathways organizations. We feel incredibly lucky to be a part of the inaugural Social Innovation cohort and to have the opportunity to learn from such amazing peer organizations. This is made possible through Tulaine’s leadership and the culture she has fostered in the Pathways portfolio.
APPROACH
21 NEW PROFIT ANNUAL REPORT 2012–2013
Spotlight on Widespread Impact Working with Health Leads Before: Can you describe Health Leads’ scale and impact before you started working with New Profit? REBECCA ONIE: Prior to New Profit, Health Leads was primarily
focused on scaling our direct impact on patients through growth SOCIAL ENTREPRENEUR Rebecca Onie
to new clinical locations and enhancements to our program model.
MISSION Health Leads believes that a
At the time, we ran two types of programs: our current Desk
different kind of healthcare system is possible for America—one that addresses all patients’ basic resource needs as a standard part of quality care. We believe that one day, all healthcare providers will be able to prescribe solutions that improve health, not just manage disease. MODEL In clinics where Health Leads
operates, doctors can “prescribe” basic resources such as food and heating assistance for their low income patients, just as they do medication. Patients then take their prescriptions to the clinic waiting room, where Health Leads’ corps of college volunteers work side-by-side with patients to connect them to the resources they need to be healthy. FOUNDING DATE 1996 INITIAL YEAR OF INVESTMENT 2007 INVESTMENT AMOUNT TO DATE $3,108,000
model, which connects patients to the basic resources they need to be healthy, and after-school programs for children with chronic diseases. Although we knew that we envisioned a healthcare system that addresses all patients’ basic resource needs as a standard part of quality care, we didn’t yet have a theory of change for how we could achieve that systemic change—which is exactly what New Profit’s engagement enabled us to articulate.
During: How has your partnership with New Profit helped Health Leads? REBECCA ONIE: New Profit has been a pivotal thought partner, advisor
and investor in Health Leads’ evolution from effective direct-service organization to an organization with a clear theory for how to build a program model, business model, and sector leadership strategy that would position us to enact transformation in the healthcare sector. Over the past seven years, this has manifested in several ways: in 2008, New Profit’s advanced strategic and analytical support led us to close our youth programs and focus on the Desk as our vehicle for change. As we developed our current strategic plan, we were fortunate to leverage New Profit’s partnerships with Monitor and Bain Capital, whose teams of consultants enabled us to build a sophisticated program and cost model centered around scaling our desks, building a compelling business case for healthcare institutions to pay for Health Leads’ services, developing a leadership pipeline of future healthcare leaders, and preparing for
22 NEW PROFIT ANNUAL REPORT 2012-2013
rapid scale.
APPROACH
After: What is the state of Health Leads’ impact now?
HOW LONG HAVE YOU BEEN AT NEW PROFIT? Since February, 2011.
REBECCA ONIE: Health Leads has increased the scalability
WHAT COULD THE FUTURE LOOK LIKE FOR HEALTH LEADS? Health Leads is tantalizingly close to reaching its vision and becoming the catalytic force behind a health care system that addresses all patients’ basic resource needs as a standard part of quality care.
and impact of our program model while building the business case for health systems to pay for basic resource connections. Today, we work in adult, pediatric, and prenatal outpatient clinics in health systems and community health centers across the U.S.—three quarters of whom are paying for some or all of our services. This year, we will train and deploy nearly 1,000 college student Advocates to connect over 14,500 low-income patients and their families to the resources they need to be healthy. Our aspiration, however, is not only to connect yet more patients to resources but rather, as our engagement with New Profit has taught us, to focus
WHAT HAS BEEN YOUR FAVORITE PART ABOUT WORKING WITH HEALTH LEADS? Undoubtedly, working with leaders like Rebecca Onie and Sarah DiTroia (COO at Health Leads). Together they are courageous, creative, extremely competent, and confident without going anywhere near cocky. Vanessa often describes being a deal partner like being an Olympic coach. Working with these Olympians of social justice is a professional and personal lifetime highlight.
on pathways to making this the “new normal” for the healthcare sector. We are currently partnering with health systems to create visible proof points of healthcare systems that are integrating—both from a clinical and a financial standpoint—services to address patients’ social needs into their standard operations. We are also now focused on co-evaluating the value of addressing patients’ social needs, as well as placing ‘big bets’ on our health system partners to serve as evangelists and catalysts in achieving a shared vision for the healthcare system.
What is your favorite part about working with New Profit and your deal partner, Eliza Greenberg?
WHAT MAKES HEALTH LEADS A GOOD EXAMPLE OF SUCCESSFUL WIDESPREAD IMPACT? Health Leads is actually on the brink of broad adoption within health care institutions. What was once a free service to hospitals and clinics has now, in many cases, become a service that institutions are willing to pay for at cost and, increasingly, at scale. If they continue on their current trajectory, their model will become embedded in all major health institutions thereby putting Health Leads out of business!
Eliza Greenberg LEAD PARTNER, PORTFOLIO OPERATIONS, NEW PROFIT
REBECCA ONIE: It is powerful to be part of a portfolio of
organizations that are all seeking to create systemic change and leverage ecosystems of partners to accomplish that change. There is enormous organizational value in being a part of this unique community. We can always rely on Eliza and the New Profit team to provide incredibly candid feedback, as well as partner with us in both surfacing best practices and predicting future challenges before we see them coming. This type of partnership is rare—and enables us to achieve yet greater systemic impact. APPROACH
23 NEW PROFIT ANNUAL REPORT 2012–2013
Spotlight on Portfolio Exit Working with Stand for Children Can you describe Stand’s scale and impact before you started working with New Profit? JONAH EDELMAN: Before Stand became the first advocacy SOCIAL ENTREPRENEUR Jonah Edelman MISSION To ensure that all children,
regardless of their background, graduate from high school prepared for, and with access to, a college education. MODEL Stand has more than a decade of
experience working together with parents, communities and organizations as partners. Together, they elect state legislators and local officials who will be champions for education. They deliver policy victories at the state level and they follow through to ensure new policies are effectively implemented in public school classrooms.
organization to join the New Profit portfolio, we had four state affiliates, worked in seven or eight school districts, and had just begun to shift from being focusing solely on education funding to advocating for policies and investments that would make the most difference in improving disadvantaged students’ success. At the time, I believe we had roughly 45 staff overall and, at the national level, we had a bunch of very smart and hardworking overachievers who were early in their careers and generally lacked substantial expertise in key areas of organizational operations. We were making an impact, for sure, but I’d say we hadn’t fully hit our stride.
FOUNDING DATE 1999
How did your partnership with New Profit help Stand?
INITIAL YEAR OF INVESTMENT 2008
JONAH EDELMAN: New Profit added very significant value to
INVESTMENT AMOUNT TO DATE $3,041,000
Stand in a range of areas, among them strategic planning, board development, building a strong national talent function, program evaluation, and broadening our donor base. But as important as all of those things were, looking back, the most important valueadd was the way the partnership helped me develop as a leader. Thanks to Vanessa Kirsch and to the example of Wendy Kopp, Michael Brown, Gerald Chertavian, and so many others in the New Profit community that I so greatly respect, I set my sights even higher. I started holding myself to a higher standard. The New Profit partnership helped me expand my vision for what Stand could become and my sense of how fast we could get there.
24 NEW PROFIT ANNUAL REPORT 2012-2013
APPROACH
What is the state of Stand’s impact now?
HOW LONG HAVE YOU BEEN AT NEW PROFIT? Since July, 2007.
JONAH EDELMAN: Since Stand entered the New Profit
portfolio in 2008 , we have more than tripled in size. Stand now has affiliates in eleven states that have more than 18 million students, and, within those states, we have local chapters in 22 school districts that serve more than 2 million students. More important than our expanded scale, we’re getting profoundly greater results because of greater strategic clarity, a stronger team, more effective performance management, and more effective operational systems and processes. In 2013, Stand affiliates played a key role in 30 statelevel policy or budget victories and 14 district level successes that will positively impact literally millions of students, including protecting the Common Core, improving access to high quality charter schools, automatically qualifying academically promising students into AP or IB classes to prevent their being tracked into non-college prep courses, securing funds for pre-k, teacher mentoring, and interventions to improve 3rd grade reading proficiency. We also expanded our Stand UP program, a 10 week course to teach low-income parents how to better support their children’s education, which is now operating in 7 cities and has graduated 1,470 parents and we’re positioned for an even bigger impact to come. This is a markedly more effective organization than the one that entered the New Profit portfolio five years ago.
WHAT MAKES STAND AN EXAMPLE OF A SUCCESSFUL PORTFOLIO EXIT? We saw enormous growth in the time Stand was in our portfolio. At exit, New Profit’s support was still helpful, but not critical for them in navigating the challenges they were facing. By then they had built the capabilities and capacity to bring many of our offerings in-house—they could hire and manage their own team, they had built a strong board and network of supporters, they had internalized capabilities to manage and execute strategic growth. In summary, Stand for Children earned their place on the nationwide stage and was poised to become a nationwide proof point for the power of social entrepreneurs to solve our nations most pressing problems. WHAT COULD THE FUTURE LOOK LIKE FOR STAND FOR CHILDREN? Stand is currently operating in 11 states, but already on the verge of getting to a nationwide tipping point in education. Their reach covers rural/urban, red states/ blue states, north, south, east, and west, giving them credibility as a leading voice in education reform. WHAT IS YOUR FAVORITE PART ABOUT WORKING WITH STAND FOR CHILDREN? They had such a hunger for learning and growth! If they hit a bump, they immediately reflected on what caused it, how to go about fixing it, and what learnings they could take from it to improve going forward.
Shruti Sehra PARTNER, NEW PROFIT
What has been your favorite part about working with New Profit? JONAH EDELMAN: It’s the capability of the New Profit
staff and the can-do culture at New Profit. New Profit reflects Vanessa’s boundless sense of possibility and her willingness to go all out to get results. I absolutely love that. I loved working with a partner that’s as driven as Stand is to make a major impact on the lives of students who need our help TODAY.
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NEW PROFIT ANNUAL REPORT 2012–2013
What is Our Domain Approach? Domains are based on, and will continue to emphasize, New Profit’s entrepreneurial values and track record of helping social entrepreneurs scale impact and build sustainable organizations.
DOMAIN
Pathways Only 60% of America’s low-income youth graduate from high school. Only 8.3% of students from low-income families have earned a bachelor’s degree by their mid-20s. Over 4.3 million youth (18-24 years old) in the US are not attending school, not working, and have no credentials beyond high school.
DOMAIN
Domains welcome those with bold aspirations, an appetite for risk and are dissatisfied with the status quo.
Domains enable social entrepreneurs, funders, New Profit and other committed players to engage through powerful vulnerability to build strong partnerships.
Domains become communities where partners develop and launch disruptive innovation into fields catalyzing actors in those fields.
Reimagine Learning Too many students are underserved by current instructional means. They lack the preparation and critical skills necessary to succeed within and outside school. This is particularly true for students with learning differences and students impacted by the trauma associated with poverty. A number of important factors—ranging from new developments in neuroscience to technology to the standards movement—are coming together to create a moment of urgency and opportunity for dramatic change for students.
DOMAIN IN EXPLORATION
Domains explore the boundaries of a field and those adjacent fields. This, in turn, opens up new possibilities for where innovation can occur and unexpected connections are made and outcomes can be realized. Domain partners get smarter because they are connected to these networks.
26 NEW PROFIT ANNUAL REPORT 2012-2013
Early Childhood Experience Children’s early experiences overwhelmingly determine on which side of the achievement gap they are likely to land. The early childhood field lacks evidence-based organizations ready and able to bring their solutions to national scale. To close the achievement gap at its roots, the field must both grow its direct reach and build communities with the credibility and critical mass to drive systemic change.
APPROACH
COLLEGE ADVISING CORPS
DOMAIN
Pathways VISION AND MISSION
The Pathways Fund is focused on ensuring that every young person has the power to write their own story. We find, nurture, and collaborate with organizations that have already been successful in making sure that young people are prepared for work, school, and life. The result is that more young people are able to successfully navigate the path from school to work and toward a better life. OUR TARGET
We invest in the nation’s most promising social innovations that successfully transition youth to postsecondary education and productive employment. Working with our co-investors we strive to: •• Support innovative organizations to scale—expanding the number of young people served in our communities and helping build sustainable program models that will make an impact across the country •• Increase evidence in four key outcomes—high school graduation/GED attainment, college enrollment, college credit accumulation, living wage •• Leverage the power of the portfolio—facilitating geographic and programmatic collaboration among organizations and cultivating a learning community among funders and organizations to improve practice
Launched Launched in 2010, in partnership with the Social Innovation Fund (SIF) and matching funds from co-investors.
$50M $50M Funding over 5 years
Co-investors Blue Ridge Foundation New York Carnegie Corporation of New York Corporation for National and Community Service(CNCS)/Social Innovation Fund (SIF) JPMorgan Chase, former The Kresge Foundation Oak Foundation Open Society Foundations Robin Hood Foundation Sea Change Capital Partners, former State Street Foundation
Portfolio College Advising Corps College Summit iMentor Single Stop Year Up YouthBuild USA
Lead Partner Tulaine Montgomery
APPROACH
27
NEW PROFIT ANNUAL REPORT 2012–2013
PEACE FIRST
DOMAIN
Reimagine Learning VISION AND MISSION
The Reimagine Learning domain aims to fundamentally reimagine the way learning happens in America so that all students can achieve academic and life success. This vision hinges on three core principles:
Launched Launched in 2012
$30-50M Over 5 years projected to raise $30-50M
Co-investors Roch Hillenbrand Oak Foundation Sarah Peter Poses Family Foundation The Peter and Elizabeth C. Tower Foundation Wasserman Foundation
Portfolio Eye to Eye New Classrooms New Teacher Center Peace First The Achievement Network Turnaround for Children
Lead Partner Shruti Sehra
1) There is no such thing as the “average learner.” Instructional approaches in optimal learning environments should be personalized to the differing talents and needs— or variability—of every child; 2) The development of both cognitive and social-emotional skills is important. The best learning environments recognize that they are inextricably linked and together drive academic performance, well-being, and life success; and 3) Students should be engaged and in control of their own learning, harnessing and strengthening their own selfagency and voice. OUR TARGET
To achieve this type of transformative change, the domain has built a coalition of visionary actors—social entrepreneurs, funders, policy advocates, researchers, and creative and entertainment community members—who are working together to align actions to change practice, policy, and culture. To this end, the domain aims to: •• Select and scale innovative, high-impact and sustainable demonstration points •• Support, incubate, and design collaborations •• Create policies that incentivize schools, remove barriers, and build capacity •• Explore ways to alter public perception and behavior to drive public will and demand for a new vision of learning
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APPROACH
ACELERO LEARNING
DOMAIN IN EXPLORATION
Early Childhood Experience VISION AND MISSION
Investing in the right set of early childhood interventions now will create opportunities for all children to realize their full potential as children and to chart a course to success later in life. We aim to build a movement to improve the quality of early experiences for all children in America by supporting innovative social entrepreneur-led models to scale and convening a group of cross-sector actors to align around a common set of goals. OUR TARGET
To accomplish this goal, the Early Childhood Experience domain will include investments that: •• Are led by outstanding social entrepreneurs with the potential to influence the national dialogue
Launched Domain explorations launched in 2012
Co-investors Bezos Family Foundation Rainwater Charitable Foundation
Portfolio Acelero Learning AVANCE
Lead Partner Kim Syman
•• Aim to transform the life trajectories of children between the ages of zero and five •• Pull a diverse array of system levers to disrupt and shift the field •• Have a national footprint and ambition for continued growth With our current investments in Acelero Learning and AVANCE, New Profit will collectively impact 8,000 children and 2,700 parents annually in communities in 10 states with the potential to grow far beyond this reach in the coming years. Acelero also aims to reach 25,000 children & families through its affiliate network this year.
29 APPROACH
NEW PROFIT ANNUAL REPORT 2012–2013
Who We Are AMERICA FORWARD, New Profit’s nonpartisan policy initiative, unites
“ America Forward provided the insight, expertise, and connections we needed to build a coalition behind national legislation. Our Veterans Civilian Service Option has the potential to change the way we welcome veterans home, giving millions of recent veterans the opportunity to serve in their communities. Our partnership with New Profit and America Forward has multiplied our impact on the lives of those we serve.” ERIC GREITENS, FOUNDER THE MISSION CONTINUES
social entrepreneurs and policymakers to advance a public policy agenda championing innovative and effective solutions to our country’s most pressing social problems. We advance these efforts through the leadership of the America Forward Coalition, a network of more than 50 innovative, impact-oriented organizations, working in every state and in more than 1,000 communities nationwide, dedicated to driving systemic change in education, early childhood, workforce development, and Pay for Success. America Forward Coalition members share a commitment to innovating to achieve better results, using data to track progress and ensure accountability, and leveraging resources across silos and sectors to improve the lives of the people they serve. Our Coalition organizations are achieving measurable outcomes in communities across the country every day. We believe that innovative policy approaches that spur innovation, reward results, and catalyze cross-sector partnerships can transform these local results into national change and propel all of America forward.
What America Forward Does ADVANCE INNOVATIVE POLICY PLATFORMS: America Forward
SUPPORT SERVICE AND SOCIAL INNOVATION: America Forward
INCUBATE CUTTING EDGE IDEAS:
DEVELOP ORGANIZATIONS’ WIDE-SPREAD IMPACT: America
Coalition-led Task Forces pursue collective policy agendas in education, workforce development, and Pay for Success and unite in collective advocacy efforts. America Forward develops promising social innovation policy proposals and advances bold new ideas through engagement with policymakers, thought leaders, and Coalition members.
30 NEW PROFIT ANNUAL REPORT 2012-2013
Organizations in boldface are current members of the New Profit portfolio.
supports strategies that increase opportunities for national service and help scale proven programs by investing in what works through results-driven policies.
Forward partners with innovative organizations to help build their policy and systems change capacities and foster crosssector collaborative learning opportunities.
APPROACH
America Forward Coalition ACELERO LEARNING
America Forward’s Federal Policy Priorities
ALTERNATIVE STAFFING ALLIANCE
Launched in 2007, America Forward helped inspire the creation of the White House Office of Social Innovation and Civic Participation, advocated for the passage of the Serve America Act, and was a pivotal partner in developing the Social Innovation Fund. Our 2014 Policy Priorities include:
APPLETREE INSTITUTE FOR EDUCATION INNOVATION
•• Reauthorize and reshape critical federal policies and programs in Education and Workforce Development •• Improve access to and use of data, and promote policy solutions that foster innovation, engage all sectors, and invest in what works •• Advance Pay for Success and other results-oriented innovative funding strategies •• Increase opportunities for national and volunteer service for all Americans and support social enterprise
AMERICA’S PROMISE ALLIANCE
NEW SECTOR ALLIANCE
BELL*
OPPORTUNITY NATION
BLUE ENGINE
PEACE FIRST
BOTTOM LINE
PEER HEALTH EXCHANGE
BUILD*
READING PARTNERS
CHILD MIND INSTITUTE
REDF
CITIZEN SCHOOLS*
ROCA
CITY YEAR
ROOT CAUSE
COLLEGE ADVISING CORPS
SAVE THE CHILDREN
COLLEGE FORWARD
SAY YES TO EDUCATION
COLLEGE POSSIBLE
SERVICENATION
COLLEGE SUMMIT
SINGLE STOP
COMPASS WORKING CAPITAL
SOCIAL ENTERPRISE ALLIANCE
CONNECTICUT CENTER FOR SOCIAL INNOVATION
TEACH FOR AMERICA*
EYE TO EYE
GENESYS WORKS
APPROACH
NEW LEADERS
NEW TEACHER CENTER
GENERATION CITIZEN
EXECUTIVE DIRECTOR, AMERICA FORWARD
NEW CLASSROOMS
AVANCE
FIRST PLACE FOR YOUTH
Deborah Smolover
NATIONAL CENTER FOR LEARNING DISABILITIES (NCLD)
THE CHILDREN’S AID SOCIETY THE CORPS NETWORK THE MISSION CONTINUES THIRD SECTOR CAPITAL PARTNERS
GLOBAL CITIZEN YEAR
TURNAROUND FOR CHILDREN, INC.
GREENLIGHT FUND
TWIN CITIES RISE!
iMENTOR
UASPIRE
INVEST IN OUTCOMES
WATERFORD INSTITUTE
JUMPSTART*
YEAR UP
KIPP SCHOOLS
YOUTH VILLAGES
LIFT
YOUTHBUILD USA
31 Organizations in bold are in New Profit’s current portfolio. Organizations with an asterisk* are New Profit portfolio NEW PROFITalumni. ANNUAL REPORT 2012–2013
Raise the Talent Game
2 014 marked the 10th anniversary of New Profit’s Gathering of Leaders, one of the nation’s most influential convenings of top social innovators and their counterparts in business, government, philanthropy, media, technology and academia. An invitation-only event, approximately 250 Gathering participants come together annually for an intimate two-day convening to accelerate solutions to our nation’s toughest problems in early childhood development, K-12 and post-secondary education, workforce development, community health, poverty, and related areas. Participants challenge each other’s beliefs and assumptions, forge new connections, spark ideas, align strategies, and shape initiatives that unlock the potential of social innovation to expand social mobility in communities across the nation.
32 NEW PROFIT ANNUAL REPORT 2012-2013
Gathering participants have developed the ideas, networks, and initiatives to increase human capital for social innovation, including organization-level and field-wide talent initiatives and trainings to recruit, develop, and retain talent; and the creation of a national nonprofit talent firm. Today that firm, Commongood Careers, is relied on as an experienced nationwide nonprofit search firm.
Catalyze Thought Leaders’ Work The Gathering has catalyzed new intellectual capital for social innovation. Inspired by their involvement in the Gathering, thought leader Jim Collins wrote a monograph exploring how his ideas play out in the social sector, disruptive innovation specialist Clay Christensen wrote a book applying the ideas of disruptive innovation to education and technology, and David Gergen has collected and integrated insights to evolve the strategy of the Center for Public Leadership at Harvard Kennedy School.
Civic Engagement & Citizen Mobilization In the face of drastic threats to the federal national service budget, Gathering participants created Save Service, an initiative to help leaders and communities across the nation to understand the impact of service in local neighborhoods and build support for its continuation. The Save Service campaign ensured the survival of AmeriCorps, which puts national service human capital into communities nationwide. In addition, participants have advanced innovative policy in the areas of education, workforce development, and Pay for Success.
APPROACH
Sampling of Previous Participants THOUGHT LEADERS Ram Charan, business consultant Clay Christensen, disruptive innovation specialist Jim Collins, management educator David Gergen, commentator Steven Johnson, author Bill Kristol, Washington veteran
Unite Advocacy Movements to Advance Policy Change
Douglas Rushkoff, author
Gathering participants created America Forward, the nation’s only advocacy and policy coalition of social entrepreneurs. This nonpartisan initiative has been a primary driver of social innovation policy at the federal level since 2008, and directly led to the creation of the Social Innovation Fund, authorized through the 2009 Edward M. Kennedy Serve America Act. Members of the Gathering community have been instrumental to the creation of several other major social innovation policy initiatives at the federal and local levels.
Bryan Stevenson, Equal Justice Initiative CEO
David Simon, creator and executive producer of The Wire Paul Tough, author
BUSINESS LEADERS Indra Nooyi, Chairperson and CEO, PepsiCo Clarence Otis Jr., CEO, Darden Restaurants Barry Salzberg, Global CEO, Deloitte Touche Tohmatsu Limited Liz Smith, CEO, OSI Restaurant Partners Jeff Swartz, President and CEO, Timberland Jonathan Tisch, Chairman and CEO, Loews Hotels
GOVERNMENT LEADERS Governor Jeb Bush (Former, FL) US Secretary of Education Arne Duncan Senator Mark Warner (VA) Senator Jeanne Shaheen (NH) Senator Bill Bradley (Former, NJ) Mayor Anthony Foxx (Charlotte)
Stimulate the Social Innovation Community The Gathering has generated new social capital for the field, directly enabling the creation of new networks, frameworks, partnerships, and resources that have strengthened and transformed organizations and systems. Informal relationships and formal partnerships forged at the Gathering frequently persist for years.
APPROACH
Mayor Shirley Franklin (Atlanta) Mayor Cory Booker (Newark) Mayor Adrian Fenty (District of Columbia) Mayor A C Wharton, Jr. (Memphis) Mayor Kasim Reed (Atlanta) Numerous representatives and leaders of the Corporation for National and Community Service (CNCS) and the White House Office of Social Innovation and Civic Participation (WHOSICP)
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NEW PROFIT ANNUAL REPORT 2012–2013
My partnership with New Profit allows me to leverage my giving for broader and deeper impact. I trust New Profit’s leadership and expertise to select and scale great organizations that open new opportunities for American communities. DUNCAN McFARLAND THE BROMLEY CHARITABLE TRUST NEW PROFIT INVESTOR AND BOARD MEMBER SINCE 2007
03
Development Title
35 NEW PROFIT ANNUAL REPORT 2012–2013
Review of Giving The New Profit Development Team Derrek Shulman PARTNER SENIOR PHILANTHROPIC ADVISOR DIRECTOR OF DEVELOPMENT COMMUNICATIONS
Cornell Stinson PARTNER, DIRECTOR OF DEVELOPMENT
Adria Chamberlain STRATEGIC PARTNERSHIPS MANAGER
Samantha Waite SENIOR DEVELOPMENT COORDINATOR
Ted Matwijec SENIOR RESEARCH COORDINATOR
Addie Johnson DEVELOPMENT COORDINATOR
Greetings! At New Profit, innovation and impact are among our most important core values. In 2012, we set a course for ambitious fundraising to fuel future investment deals and support our current portfolio organizations as they scale their impact. We are now in our third phase of fundraising since our inception in 1998 and have designated a goal of $125 million to be raised over three years. The additional revenue will allow us to support a greater number of social entrepreneurs at a more profound funding level. In 2012, we raised a total of $34.9 million and we secured an additional $41.6 million in 2013. We focus on engaging philanthropic partners who share our mission to bring innovative measurable solutions to some of America’s most intractable problems in education, workforce development, public health, and poverty alleviation. This is the core of our strategic plan. In the past year, we also explored and established domains, which are initiatives focused on specific issue areas, such as pathways to college success and beyond, learning differences and social-emotional learning, and early childhood. These domains bring together funders, thought leaders, policy experts, and social entrepreneurs to develop solutions in these important issue areas. We invite you to review the list of our generous investors and supporters. With your help, we can continue to build a network of social entrepreneurs who drive impact toward systemic change. And with your financial support, we will make an even greater difference for communities and families across America. Kind regards,
The New Profit Development Team
36 NEW PROFIT ANNUAL REPORT 2012-2013
DEVELOPMENT The donors listed do not take responsibility for any statements or views expressed in this publication.
Investors Anonymous
Bromley Charitable Trust
John Doerr
Initial Year of Support: 2000
Initial Year of Support: 2007
Initial Year of Support: 2012
Anonymous
Michael and Lisa Bronner
Doran Family Charitable Trust
Initial Year of Support: 2008
Initial Year of Support: 2003
Initial Year of Support: 1999
Anonymous
Kevin and Julie Callaghan
Initial Year of Support: 2009
Berkshire Partners Initial Year of Support: 2005
Nancy C. and Dale Dougherty Foundation
Avis Family Foundation Initial Year of Support: 2009
Carnegie Corporation of New York
Andrew and Melora Balson Family Fund
Initial Year of Support: 2011
Initial Year of Support: 2006
Randi and Larry Cohen Family Foundation
Deb and Steve Barnes
Initial Year of Support: 2008
Bain Capital Initial Year of Support: 2004
Thomas C. Barry Initial Year of Support: 2011
Josh and Anita Bekenstein Bain Capital Initial Year of Support: 2000
Bezos Family Foundation Initial Year of Support: 2012
Blue Ridge Foundation New York
Howard P. Colhoun Family Foundation
Initial Year of Support: 2008
Kate and Bill Duhamel Initial Year of Support: 2011
eBay Foundation Initial Year of Support: 2013
Paul and Sandy Edgerley Bain Capital Initial Year of Support: 2000
Initial Year of Support: 1999
Michael and Barbara Eisenson
George and Patsy Conrades
Charlesbank Capital Partners Initial Year of Support: 2006
Akamai Technologies, Inc. Initial Year of Support: 2007
Dancing Tides Foundation
Marjorie M. Findlay and Geoffrey T. Freeman Initial Year of Support: 2013
Initial Year of Support: 2006
Laura DeBonis and Scott Nathan Initial Year of Support: 2008
Lance Fors Social Venture Partners International Initial Year of Support: 2011
Initial Year of Support: 2007
Leadership
67%
$509,672
NEW PROFIT’S BOARD OF DIRECTORS HAS CONTRIBUTED 39% OF TOTAL GIVING TO THE ORGANIZATION
OF OUR 3-YEAR $125 MILLION GOAL HAS BEEN ACHIEVED TO-DATE
THE AVERAGE SIZE OF NEW COMMITMENTS MADE IN 2012–2013
37 DEVELOPMENT
NEW PROFIT ANNUAL REPORT 2012–2013
Phillip and Elizabeth Gross
Douglas and Audrey Miller
The Samberg Family Foundation
Initial Year of Support: 2013
International Private Equity Limited Initial Year of Support: 2005
Initial Year of Support: 2007
M. Roch Hillenbrand The Hillenbrand Family Foundation Initial Year of Support: 2013
Stephen and Kristin Mugford
The Jenesis Group
Oak Foundation
Initial Year of Support: 2008
Initial Year of Support: 2012
Professor Robert S. Kaplan and Ellen L. Kaplan
James and Kim Pallotta
Harvard Business School Initial Year of Support: 2001
Florence Koplow Initial Year of Support: 2006
Jonathan and Jeannie Lavine
Maurice and Luly Samuels Initial Year of Support: 2009
Initial Year of Support: 2007
Jeffrey Shames Initial Year of Support: 2006
Brian and Stephanie Spector Initial Year of Support: 2007
Initial Year of Support: 2004
Saul Pannell and Sally Currier
State Street Foundation Initial Year of Support: 2011
Initial Year of Support: 2011
Peery Foundation
The Kresge Foundation Initial Year of Support: 2012
Initial Year of Support: 2011
Bain Capital/Sankaty Advisors Initial Year of Support: 2001
Sarah Peter
The Sidney A Swensrud Foundation
Initial Year of Support: 2010
Initial Year of Support: 2012
Matt and Renée Levin
Poses Family Foundation
Lizzie and Jonathan M. Tisch
Initial Year of Support: 2013
Initial Year of Support: 2009
Rainwater Charitable Foundation
Tower Family Fund
Initial Year of Support: 2011
Initial Year of Support: 2009
Geoffrey and Laura Rehnert
The Peter and Elizabeth C. Tower Foundation
Bain Capital Initial Year of Support: 2007
Leon Lowenstein Foundation on behalf of Tom and Kathryn Bendheim Initial Year of Support: 2009
Mannion Family Foundation Initial Year of Support: 2009
Henry and Allison McCance Initial Year of Support: 2012
Audax Group Initial Year of Support: 2006
Elizabeth G. Riley and Daniel E. Smith
Initial Year of Support: 2012
Jeffrey C. and Suzanne C. Walker Initial Year of Support: 2010
Initial Year of Support: 2009
Robin Hood Foundation
Wasserman Foundation Initial Year of Support: 2013
Initial Year of Support: 2011
Investment
80
$41.6M
IN 2012–2013, NATIONAL & FAMILY FOUNDATIONS MADE GRANTS & COMMITMENTS OF $26.4 MILLION TO NEW PROFIT
GENEROUS INVESTORS, SUPPORTERS & PARTNERS MADE GIFTS & PLEDGES IN 2012–2013
WAS RAISED IN 2013—THE SECOND HIGHEST FUNDRAISING YEAR SINCE NEW PROFIT’S FOUNDING
38 NEW PROFIT ANNUAL REPORT 2012-2013
DEVELOPMENT
Supporters
Partners
Ned and Jill Bicks
Bansi Nagji
Initial Year of Support: 2005
Initial Year of Support: 2004
Dan and Robin Catlin
Adam Nebesar
Initial Year of Support: 2007
Initial Year of Support: 2012
Lisette Cooper
Max Nibert
Initial Year of Support: 2013
Initial Year of Support: 2006
Paul Grogan
Gregg Petersmeyer
Initial Year of Support: 2008
Initial Year of Support: 2011
John LeClaire and Ruth Hodges
Gary Syman and Azita Raji
Initial Year of Support: 2011
Initial Year of Support: 2005
JPMorgan Chase
Jane and Hooker Talcott
Initial Year of Support: 2010
Initial Year of Support: 2009
Alan and Harriet Lewis
Peter and Laurie Thomsen
Initial Year of Support: 2012
Initial Year of Support: 2004
Corporation for National and Community Service Social Innovation Fund Initial Year of Support: 2010
Goodwin Procter LLP Initial Year of Support: 1999
John S. and James L. Knight Foundation Initial Year of Support: 1999
Dr. Michael Lomax Initial Year of Support: 2012
Anne and Paul Marcus
Deloitte
Initial Year of Support: 2013
Monitor’s initial year of support: 1999 Deloitte Consulting’s initial year of support: 2013 See page 7 for information on our collaboration with Deloitte, built following their acquisition of Monitor in 2013.
Achieve
75%
63%
NEW PROFIT SEEKS TO RAISE A TOTAL OF $125 MILLION TO FUND IMPACTFUL INVESTMENTS OVER THE NEXT THREE YEARS
OF TOTAL GIVING IN 2012–2013 COMES FROM INVESTORS & SUPPORTERS OUTSIDE OF MASSACHUSETTS
HAS BEEN RAISED IN SUPPORT OF OUR DOMAINS SINCE LAUNCHING OUR NEW ENGAGEMENT STRATEGY
39 DEVELOPMENT
NEW PROFIT ANNUAL REPORT 2012–2013
ew Profit is unique. N Their focus, always, is on what do you need to make the biggest possible impact. Then they look for ways to help. AARON LIEBERMAN CO-FOUNDER & CEO, ACELERO LEARNING, INC. New Profit portfolio organization since 2012
04
Financials Title
41 NEW PROFIT ANNUAL REPORT 2012–2013
42 NEW NEW PROFIT PROFIT ANNUAL ANNUAL REPORT REPORT 2012–2013 2012-2013
PHOTO CREDIT: YEAR UP
FINANCIALS FINANCIALS
2013 Financials Revenue Breakdown Individuals and Family Foundations
11% $32,551,952
Federal Government— Social Innovation Fund
$4,755,693
Corporations and Foundations
$4,875,500
Deloitte In-Kind Services
$2,706,022
Other In-Kind Services Total Revenue
CORPORATIONS AND FOUNDATIONS
10%
FEDERAL GOVERNMENT— SOCIAL INNOVATION FUND
6%
DELOITTE IN-KIND SERVICES
2%
$716,693
OTHER IN-KIND SERVICES
$45,605,860
71%
INDIVIDUALS AND FAMILY FOUNDATIONS
Expense Breakdown Portfolio Services Grantmaking $15,907,599 Portfolio Management Administration, Communications, and Fundraising Field Leadership Deloitte In-Kind Services Total Expense
$4,727,213 $4,593,836 $2,604,121 $2,706,022
15%
ADMINISTRATION, COMMUNICATIONS, AND FUNDRAISING
15%
9%
PORTFOLIO MANAGEMENT
FIELD LEADERSHIP
$30,538,791
9%
Changes in Net Assets $15,067,069 * Administative expenses as a percentage of total expenses (excluding donated services)
15%
* For the year ended December 31, 2013, New Profit had total changes in net assets of approximately $15M. New Profit had an increase in its restricted net assets of $16.3 offset by a decrease in unrestricted net assets of $1.2M. As of December 31, 2013, New Profit had approximately $41M in net assets of which $35.6M is temporarily restricted and $5.5M is unrestricted. Temporarily restricted net assets are primarily comprised of multiyear commitments, which are recorded as revenue in the year the commitment is made, and of program restricted funds.
FINANCIALS
DELOITTE IN-KIND SERVICES
52%
GRANTMAKING
43 NEW PROFIT ANNUAL REPORT 2012–2013
It is powerful to be part of a portfolio of organizations that are all seeking to create systemic change and leverage ecosystems of partners to accomplish that change. REBECCA ONIE CO-FOUNDER & CEO, HEALTH LEADS New Profit portfolio organization since 2007
05 Portfolio Title
45 NEW PROFIT ANNUAL REPORT 2012–2013
Portfolio Directory EDUCATION
EDUCATION
Acelero Learning*
Achievement First
Acelero Learning manages a) its
EDUCATION
EDUCATION
AVANCE
Achievement First is a growing
The Achievement Network
own quality Head Start centers
network of 29 nonprofit, highperforming, college-preparatory,
New Investment
America’s potential by
that are on the cutting edge of best practices and impact, b) an
K to 12 public charter schools
Affiliate Network of Head Start
serving over 9,500 students in
programs who partner closely
Bridgeport, Hartford and New
with Acelero and implement its
Haven, Connecticut; Brooklyn,
tools and best practices in their
New York; and Providence, Rhode
centers, and c) Training and
Island. Achievement First schools
Technical Assistance (T&TA)
provide all of our students with
services to other Head Start
the academic and character
centers.
skills they need to graduate from
LIVES TOUCHED
3,886
REVENUE
top colleges, to succeed in a competitive world, and to serve as the next generation of leaders
$50.8M
in our communities.
SOCIAL ENTREPRENEUR
LIVES TOUCHED
Aaron Lieberman
9,500
alongside school leadership teams to strengthen their school-wide practice and culture of using learning standards and achievement data to get breakthrough results for students in underserved communities. LIVES TOUCHED
117,500 REVENUE
$14.8M SOCIAL ENTREPRENEUR
Mora Segal
strengthening families in at-risk communities through parent education and support programs. Its signature Parent-Child Education Program (PCEP) is a 9-month curriculum that provides parents of children 0-3 with the education and skills to become their child’s first teachers through weekly classes and regular home visits. While parents are in class, children receive developmentally appropriate care that is mapped to parents’ curriculum. LIVES TOUCHED
6,655
REVENUE
REVENUE
SOCIAL ENTREPRENEURS
SOCIAL ENTREPRENEUR
Doug McCurry & Dacia Toll
Richard Noriega
$183M Acelero Learning is receiving financial and strategic support from New Profit to advance charitable and educational programs that help dramatically improve opportunities for lowincome children, families, and communities..
The Achievement Network works
AVANCE aims to unlock
$52.2M
Exited Portfolio in 2013.
46 NEW PROFIT ANNUAL REPORT 2012-2013
PORTFOLIO
Portfolio Directory EDUCATION
BUILD
EDUCATION
EDUCATION
EDUCATION
College Possible
College Summit
BUILD’s college preparation and
College Advising Corps
By harnessing the power of
College Summit builds
entrepreneurship program begins
College Advising Corps hires and
national service to create a
college-going culture in
corps of near-peer coaches,
low-income high schools by
College Possible provides
equipping the most influential
intensive college mentorship that
students to provide college
empowers low-income students
know-how and higher
to navigate the barriers to college
expectations in the most
admission and completion.
compelling way: peer-to-peer.
as a daily in-school elective in the ninth grade, and thereafter is offered as an after-school program through twelfth grade. In BUILD, students develop their own business ideas, write business plans, pitch to funders and launch real businesses. To help them become eligible and ready for college, students also receive tutoring, test prep and individualized academic support, plus advising for their school-
trains recent college graduates to serve as full-time college advisers in underserved high schools where they help students with all aspects of the college admissions process. LIVES TOUCHED
110,600 REVENUE
$17M
SOCIAL ENTREPRENEUR
Nicole Hurd, Ph.D.
Their services include: academic support through ACT and application assistance; financial the college transition; and support toward college degree
work and college planning.
completion.
LIVES TOUCHED
LIVES TOUCHED
REVENUE
REVENUE
SOCIAL ENTREPRENEUR
SOCIAL ENTREPRENEUR
Suzanne McKechnie Klahr
Jim McCorkell
885
$6.12M
43,551
SAT test preparation; college aid consulting; guidance in
LIVES TOUCHED
REVENUE
$16.2M SOCIAL ENTREPRENEUR
Keith Frome
14,300 $7M
Exited Portfolio in 2013.
AMERICA FORWARD COALITION MEMBER
Organizations with this icon are members of the America Forward Coalition, the nonpartisan policy arm of New Profit. For more on America Forward, see pages 30-31.
PORTFOLIO
47 NEW PROFIT ANNUAL REPORT 2012–2013
Portfolio Directory EDUCATION
EDUCATION
Educators 4 Excellence
Eye to Eye
New Investment Educators 4 Excellence (E4E) is a teacher-led organization that elevates the profession by giving classroom teachers a meaningful voice in the creation of policies that impact their careers and their classrooms. E4E works uniquely within the system, building a broad movement and empowering educators to help create better policy and advocate for its implementation. LIVES TOUCHED
12,500
ECONOMIC OPPORTUNITY
First Place for Youth
Eye to Eye is the only national
Family Independence Initiative
LD/ADHD (learning differences/
Family Independence Initiative
ensure that all foster youth have
New Investment
attention deficit hyperactivity disorder) movement dedicated to mentoring. In addition to their core mentor/mentee relationships that pair high school and college students with elementary and middle schoolers, Eye to Eye brings people together both inside and outside the LD/ADHD community with the Think Different Diplomats; camps for students with LD/ADHD; and a variety of events.
REVENUE
LIVES TOUCHED
$3.5M
1,000
SOCIAL ENTREPRENEURS
REVENUE
Evan Stone & Sydney Morris
ECONOMIC OPPORTUNITY
$0.8M SOCIAL ENTREPRENEUR
David Flink
(FII) collects information that reveals the capacity, ingenuity, resourcefulness, and talents of low-income communities and families. Applying this deeper understanding of what lowincome families are already doing, FII collaborates with influencers and communities to
First Place For Youth works to the opportunity to experience a safe, supported transition from foster care. Through a housing program, an employment and academic enrichment program, and other supportive services, First Place helps youth to gain the skills they need to live independently and succeed on
reinvent the approach to resource
their own.
development and ignite collective
LIVES TOUCHED
action towards greater economic
2,023
and social mobility.
REVENUE
LIVES TOUCHED
1,545
REVENUE
$10.5M SOCIAL ENTREPRENEUR
Sam Cobbs
$3.4M
SOCIAL ENTREPRENEUR
Mauricio Lim Miller
48 NEW PROFIT ANNUAL REPORT 2012-2013
PORTFOLIO
Portfolio Directory PUBLIC HEALTH
EDUCATION
PUBLIC HEALTH
EDUCATION
FoodCorps
Genesys Works
Health Leads
iMentor
New Investment
Genesys Works selects urban
In clinics where Health Leads
iMentor runs a direct service,
FoodCorps is a nationwide
high school seniors to participate
operates, doctors can “prescribe”
high school-based program in
team of AmeriCorps leaders
in a 14-month program that
basic resources such as food and
New York City that partners
who connect kids to real food
provides eight weeks of
heating assistance for their low
with schools in low-income
and help them grow up healthy.
professional development and
income patients, just as they do
communities to match every
These leaders are in limited-
job training, after which students
medication. Patients then take
student with a mentor. Mentors
resource communities for a year
work in paid internships during
their prescriptions to the clinic
help students prepare for college
of public service where they teach
the school year with one of the
waiting room, where Health
and graduate with a degree.
hands-on lessons about food and
organization’s corporate partners.
Leads’ corps of college volunteers
iMentor also has a fee-for-
nutrition; build and tend school
LIVES TOUCHED
work side-by-side with patients
service partnership program that
to connect them to the resources
provides everything a nonprofit
they need to be healthy.
needs to run an effective program
gardens, and teach cooking lessons; and help change what’s on lunch trays giving kids healthy food from local farms. LIVES TOUCHED
374
REVENUE
$10.3M
LIVES TOUCHED
SOCIAL ENTREPRENEUR
8,871
Rafael Alvarez
REVENUE
in the iMentor model. LIVES TOUCHED
4,500
51,400
$10.1M
REVENUE
SOCIAL ENTREPRENEUR
$8M
Rebecca Onie
SOCIAL ENTREPRENEUR
$4.3M
SOCIAL ENTREPRENEUR
REVENUE
Mike O’Brien
Curt Ellis
AMERICA FORWARD COALITION MEMBER
Organizations with this icon are members of the America Forward Coalition, the nonpartisan policy arm of New Profit. For more on America Forward, see pages 30-31.
49 PORTFOLIO
NEW PROFIT ANNUAL REPORT 2012–2013
Portfolio Directory EDUCATION
ECONOMIC OPPORTUNITY
WORKFORCE DEVELOPMENT
ECONOMIC OPPORTUNITY
KIPP
LIFT
KIPP is a national network
LIFT clients and volunteers work
of open-enrollment, college-
one-on-one to find jobs, secure
preparatory public charter
safe and stable housing, make
schools serving over 58,000
ends meet through public benefits
students in underserved
and tax credits, and obtain quality
communities across the US.
referrals for services like childcare
KIPP focuses on a rigorous
and healthcare. Simultaneously,
academic curriculum combined
the LIFT experience pushes
with character development;
volunteers to grapple with our
providing academic and social
country’s most challenging
supports to get to and through
issues related to poverty, race,
$6.4M
college; training visionary
inequality, and policy and join the
SOCIAL ENTREPRENEUR
$7.8M
leaders; recruiting, retaining,
next generation of community
John Rice
SOCIAL ENTREPRENEUR
and empowering high-quality
changemakers.
teachers; and using and sharing data to improve our practices. LIVES TOUCHED
33,741
REVENUE
$485M
Management Leadership for Tomorrow
The Mission Continues
MLT provides the skills, coaching,
community service fellowships to
roadmap, and relationships needed to transform top minority talent into high-impact leaders. LIVES TOUCHED
800
REVENUE
The Mission Continues awards post-9/11 veterans, empowering them to transform their own lives by serving others and directly impacting their communities. LIVES TOUCHED
959
REVENUE
Spencer Kympton*
LIVES TOUCHED
11,048
REVENUE
$5M
SOCIAL ENTREPRENEUR
* Through July 2014, the organization was led by Founder Eric Greitens.
Kirsten Lodal
SOCIAL ENTREPRENEUR
Richard Barth
50 NEW PROFIT ANNUAL REPORT 2012-2013
PORTFOLIO
Portfolio Directory EDUCATION
EDUCATION
New Classrooms
New Leaders
New Investment
EDUCATION
EDUCATION
Peace First
New Leaders develops talented
New Teacher Center
New Classrooms designs
educators into transformational
New Teacher Center partners
schools, educators and other
new instructional models that
school leaders who create
reimagine the role of educators,
a vision of success for all
the use of time, the configuration
students and engage the
of physical space, and the
whole staff and community in
use of data and technology to
realizing this vision. Through
better meet the needs of each
its leadership services, New
student. They then collaborate
Leaders also collaborates with
with educators to support the
districts, charter management
implementation of these models
organizations, and states to
within traditional public, charter,
foster the conditions that enable
and independent schools.
highly effective school leaders to
LIVES TOUCHED
3,500
REVENUE
$6.1M
drive results for students.
Peace First partners with nonprofit organizations that serve
with states, school districts,
youth from pre-k to 8th grade.
and policymakers nationwide
Students learn to cooperate,
to advocate for, design, and
communicate, and resolve
implement research-based, high-quality induction, mentoring and professional development
conflicts in a developmentally appropriate way. During the second half of the program,
programs that build leadership
students transform their learning
capacity, improve teacher
into action through projects that
retention, and help close the achievement gap in our nation’s schools. NTC also works to
teach civic engagement skills while demonstrating the positive impact young people can have in
improve teaching conditions to transform schools into vibrant
their communities.
250,000
learning communities where all
LIVES TOUCHED
REVENUE
students succeed.
6,000
LIVES TOUCHED
REVENUE
1.6M
$4.8M
REVENUE
SOCIAL ENTREPRENEUR
LIVES TOUCHED
SOCIAL ENTREPRENEUR
$37.9M
Joel Rose & Chris Rush
SOCIAL ENTREPRENEUR
Jean Desravines
$28M
Eric Dawson
SOCIAL ENTREPRENEUR
Ellen Moir
AMERICA FORWARD COALITION MEMBER
Organizations with this icon are members of the America Forward Coalition, the nonpartisan policy arm of New Profit. For more on America Forward, see pages 30-31.
51 PORTFOLIO
NEW PROFIT ANNUAL REPORT 2012–2013
Portfolio Directory PUBLIC HEALTH
WORKFORCE DEVELOPMENT
WORKFORCE DEVELOPMENT
EDUCATION
Peer Health Exchange
Roca
Single Stop
Teach For All
Roca’s four-year model, which
Single Stop provides community
The national organizations within
Peer Health Exchange
includes two years of intensive
college students with access
the Teach For All network recruit
engagement and two years of
to financial resources and
outstanding young leaders of a
followup, connects very high-
additional services, helping lessen
variety of disciplines and career
risk youth to one another and to
the burden of non-academic
interests to commit two years
adults to help break destructive
pressures like lack of adequate
to teach in high-need areas
behaviors that lead to poverty,
housing, childcare, or health
and, in the long term, work as
violence and incarceration. The
insurance.
lifelong leaders to effect the
empowers teenagers to make active, informed choices about their health. PHE selectively recruits and rigorously trains college student volunteers to be health educators in urban high schools. Over the course of the 13-workshop curriculum, teenagers learn essential health information and develop critical skills including decision-making, communication, advocacy, and accessing health resources in their schools and communities. LIVES TOUCHED
21,500 REVENUE
$9.7M
SOCIAL ENTREPRENEUR
project starts with intensive outreach to re-engage young people and build relationships that support change, offers programming that meets young people where they are, operates basic and advanced transitional
LIVES TOUCHED
177,000 REVENUE
$25.4M SOCIAL ENTREPRENEUR
Elisabeth Mason
fundamental changes necessary to ensure educational opportunity for all. Teach For All increases and accelerates the impact of each organization by sharing the expertise that exists across the network, providing direct
employment, and works with
services, and facilitating high-
the city, several criminal
impact connections.
justice partners, and other organizations.* SOCIAL ENTREPRENEUR
Molly Baldwin
Louise Langheier
LIVES TOUCHED
125,000 REVENUE
$18.4M SOCIAL ENTREPRENEUR
Wendy Kopp
* New Profit is a funding partner for Roca’s work in the landmark Massachusetts Juvenile Justic Pay for Success Initiative seeks to improve recidivism metrics for 929 at-risk young men in Massachusetts.
Exited Portfolio in 2013.
52 NEW PROFIT ANNUAL REPORT 2012-2013
PORTFOLIO
Portfolio Directory EDUCATION
WORKFORCE DEVELOPMENT
WORKFORCE DEVELOPMENT
Turnaround for Children
Year Up
YouthBuild USA
Year Up enables low-income
YouthBuild USA’s post-secondary
Turnaround for Children partners
young adults (ages 18-24)
education initiative supports
to move from poverty to
low-income youth during the
professional careers in one year.
transition from second chance
The rigorous, 12-month Year Up
high school programs to and
program combines hands-on
through college to productive
skill development, professional
employment. YouthBuild
internships, and college credits.
programs partner with colleges
In achieving it’s mission, Year Up
to support YouthBuild students,
acts as an “opportunity broker”
helping them apply, enroll, and
between young adults and
complete two- and four-year
corporations lacking access to
degrees.
with public schools and districts to address the recurring and predictable obstacles to teaching and learning that stem from the stress of poverty. Turnaround’s approach is centered on the principle that the faster schools can reduce stress and risk and increase readiness, the faster they will accelerate student development and academic
a well-trained workforce and a
growth. Turnaround is leading a
pipeline of talent.
national movement to establish
LIVES TOUCHED
Fortified Environments for
1,880
Teaching and Learning as an
REVENUE
essential pillar of education reform, school design, and equitable educational opportunity
$70.1M
LIVES TOUCHED
10,000 REVENUE
$34.5M SOCIAL ENTREPRENEUR
Dorothy Stoneman
SOCIAL ENTREPRENEUR
Gerald Chertavian
for all students. LIVES TOUCHED
8,285
REVENUE
$13.8M SOCIAL ENTREPRENEUR
Pamela Cantor, M.D. AMERICA FORWARD COALITION MEMBER
Organizations with this icon are members of the America Forward Coalition, the nonpartisan policy arm of New Profit. For more on America Forward, see pages 30-31.
53 PORTFOLIO
NEW PROFIT ANNUAL REPORT 2012–2013
Portfolio Directory–Past Investments The following social innovation organizations are not currently funded by New Profit, but are past members of our portfolio. We are proud to have played a role in helping them scale their message and impact.
Portfolio exit: 2013
Portfolio exit: 2003
Portfolio exit: 2013
Portfolio exit: 2003
Portfolio exit: 2007
Portfolio exit: 2001
Portfolio exit: 2010
Portfolio exit: 2010
Portfolio exit: 2008
Portfolio exit: 2009
Portfolio exit: 2010
Portfolio exit: 2012
Portfolio exit: 2012
Portfolio exit: 2005
Portfolio exit: 2009
54 NEW PROFIT ANNUAL REPORT 2012-2013
PORTFOLIO
WE SEE PROMISE in the fearless ones.
They don’t play the game. They TRANSFORM it. They don’t create impact. They IGNITE it. They don’t edit the rules. They WRITE them. New Profit exists to STRENGTHEN, CONNECT, and AMPLIFY their potential. We invest in the BEST, so they can reach the MOST. Standing shoulder to shoulder with leaders, we remove obstacles and clear the way to impact. We build networks of excellence to multiply their efforts. And we won’t stop until together we’ve redefined possible. We know it won’t be easy; nothing worthwhile ever is. But we are compelled By those who came before us And by those whose futures will follow. Our mandate is clear: BLAZE a trail through never. CHART a course straight past impossible. ASK why not in a world of why bother.
And set our sights on NEW. NEW opportunities. NEW expectations. NEW results. NEW rules.
VISIONARIES WELCOME.
Impact required.
FROM TOP LEFT: ACHIEVEMENT FIRST, BUILD, COLLEGE POSSIBLE, SINGLE STOP USA, NEW TEACHER CENTER, FOOD CORPS
New Profit is an ever expanding network of hard driving social entrepreneurs with big hearts and big brains. This is true of all of the people you meet— New Profit staff, portfolio organizations, investors, and public sector partners. Inclusion in this network means you’re always learning and always growing. Being a part of New Profit is a validation of your work and a challenge to take it to the next level. MIKE O’BRIEN CEO, iMENTOR NEW PROFIT PORTFOLIO ORGANIZATION SINCE 2009
2012–2013 ANNUAL REPORT
200 Clarendon Street Boston, MA 02116 617-912-8800 info@newprofit.com www.newprofit.com @newprofit
Written and produced by New Profit Inc. Designed by J Sherman Studio www.jshermanstudio.com Cover photo: iMentor