2019 Annual Report
The Power to Break Through
OUR MODEL Catalyzing Breakthrough Social Entrepreneurs
Portfolio Investing
Ecosystem Building
Scale the impact of organizations led by visionary social entrepreneurs
Transform how government and philanthropy pursue social change
Find and select organizations
Fund, coach, and provide strategic support
Build community
Advocate for policy change
Influence philanthropy
Throughout this report, you will see images featuring the “delta” symbol for change, which is core to New Profit’s brand and identity as an organization and community. With social entrepreneurs, philanthropists, and other innovators across the country, we push beyond the status quo to drive systemic change that will create equity and opportunity for all.
New Profit 2019 Annual Report
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Table of
05 Portfolio Investing
Letter from New Profit’s CEO and Board Chair
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Build Investments
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Catalyze Investments
19 Portfolio Alumni
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New Profit 2019 Annual Report
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Investing in Change at the Systemic Level
Contents
32 New Profit Team Breakthrough Moments
Leadership
44 46
Financials
Our Journey to Inclusive Impact America Forward’s 2020 Presidential Campaign
38 42
Board of Directors
Ecosystem Building
Donor Roll Investors & Supporters
48 New Profit 2019 Annual Report
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New Profit 2019 Annual Report
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Letter from New Profit's Founder & CEO, Vanessa Kirsch and Board Chair, Jeff Walker
New Profit 2019 Annual Report
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Welcome to New Profit’s 2019 Annual Report!
Our theme this year is The Power to Break Through, which is primarily about the growing inclusivity, impact, and potential of our community. We are full of hope about what we can achieve together as social entrepreneurs, philanthropists, team members, and partners in the next few years.
We will stand against the forces with every ounce of our beings, but we still cannot avoid the fundamental question underlying them: against a
New Profit’s
backdrop of rampant inequality and destructive change in the nature of present and past portfolio organizations – more
our world and our work, how can we help more people recapture their
than 130 in all – continue to help millions of people realize their potential,
agency and sense of purpose? How can we help them feel The Power to
all the while planting seeds of transformation in early learning, education,
Break Through in their own lives?
workforce development, public health, and other areas. They are creating a more dynamic philanthropic sector and building a bridge to the future
At a high level, our answer to that question is the same today as it was
we all want, where the zip code you’re born into doesn’t define your
20 years ago: we back great social entrepreneurs with a mix of long-term,
destiny in America.
unrestricted funding and strategic support. Those efforts, along with our work to build an ecosystem of support around social entrepreneurs with
We feel incredibly proud to have stood behind these extraordinary leaders
America Forward’s policy work and convenings, among other things, have
for 20 years, and as we think about how we can support and partner with
helped our community become an engine of innovation and dynamism in
them in the future, we are redoubling our focus on how to get to the next
social problem solving.
level of change and impact. That starts with reconsidering our context. But we’ve also come to the realization that following the same straight line
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We’ve reached this extraordinary moment in history, where the very fabric
into the future will not be enough – and it’s not in New Profit’s character to
of our society is tearing at the seams, because too many people feel like
do so, anyway. Breaking through means we need to open our eyes much
they’ve lost the power to control their own lives and destinies. We find it
wider to see the true scope of entrepreneurial talent and new models for
horrific that this dynamic has accelerated the unleashing of such dark forc-
impact that are rising in America. We have to take chances in places that
es – rage, bigotry, xenophobia, sexism, and anti-democratic tendencies
feel unfamiliar and uncomfortable. With that in mind, we want to draw
among them – in our country.
your attention to two key areas of focus moving forward for New Profit:
New Profit 2019 Annual Report
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Inclusive Impact Earlier this year, we completed a research project with the consulting firm Next Street, backed by the Bill & Melinda Gates Foundation, that uncovered something jarring, but perhaps not altogether surprising, about philanthropy: Despite making up 30% of the population, Black
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Systemic Solutions
and Latinx leaders hold only 10% of CEO positions at nonprofits and receive only 4% of grant funding (representing a capital gap of $22
One of the most profound lessons we’ve learned over 20 years of
billion). We, all of us, are overlooking too much talent by letting this
investing in social entrepreneurs is that the classic version of “scaling
inequity persist. Bridging this capital gap is one of the most transforma-
what works” – meaning scaling direct service programs – will never be
tive and achievable things that could happen in philanthropy in the next
enough to fundamentally change inequitable systems like education and
few years. For our part, we aim to raise $100 million to bring new Black
workforce development. So, in addition to continuing to invest in social
and Latinx social entrepreneurs who are leading the way on important
entrepreneurs with strong direct service models, we will embrace entre-
social problem solving into our portfolio. See page 32 to learn more.
preneurs who directly and holistically address the root causes of problems in different ways (e.g. through movement building, policy change, and other avenues). See page 19 to learn more.
We
have also been working hard to diversify our staff, board,
portfolio, and network. This work is essential if we want to drive sustainable change in communities across the country. But this course correction is also about our continued work to try to shift philanthropy in a new direction and change mindsets about how that change happens. We are driving philanthropy towards helping more proximate, nimble entrepreneurs with deep experience in the communities they serve, to individually and collectively unlock their power to break through.
Thank you for your continued partnership and support. With gratitude,
Vanessa Kirsch
Jeff Walker
FOUNDER AND CEO
BOARD CHAIR
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Portfolio Investing
Build Investments Catalyze Investments Investing in Change at the Systemic Level & 2019 Portfolio Alumni
Doug Borchard, Eliza Greenberg and Tulaine Montgomery New Profit
New Profit 2019 Annual Report
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This is Our Portfolio In 2019, New Profit supported a total of 65 social entrepreneur-led organizations with our pioneering venture philanthropy model. Our portfolio investments for 2019 included:
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Build Investments
Catalyze Investments
$1M+ unrestricted, multi-year grants supplemented
$50-100K unrestricted grants, strategic advice,
with deep advisory support to build the capacity
and a peer learning community over 1-2
of organizations working to expand their impact
years to catalyze organizations led by leaders
and sustainability. New Profit deal partners
from underrepresented communities. Three
serve as close-in advisors and take a seat on the
active cohorts include: Civic Lab (democracy
organizations' Board of Directors.
entrepreneurs), Proximity (social entrepreneurs of color), and Unlocked Futures (entrepreneurs directly impacted by the criminal justice system).
Deloitte Pro Bono Support In addition to receiving support from New Profit deal partners, the following Build Investments received pro bono strategic support from Deloitte Consulting LLP in 2019: EdLoC, Highlander Institute, Innovate Public Schools, PowerMyLearning, The Learning Accelerator, The Health Initiative, Transcend Education, and Valor Collegiate Academies. A Deloitte case team also provided pro bono strategic support to New Profit’s Inclusive Impact initiative. Since 2013, Deloitte and New Profit have collaborated to build the capacity of 41 high-impact organizations in the New Profit portfolio. For the full story, visit www.newprofit.org/breakthrough/Deloitte
2019 EXITS 10
New Profit 2019 Annual Report
The following organizations exited the New Profit portfolio during the course of 2019:
Achievement Network (ANet), Family Independence Initiative (FII), Health Leads, Match Education/Duet (Formerly Match Beyond), New Teacher Center (NTC), and Third Sector Please see an investments exit highlight featuring these organization beginning on page 24.
BUILD INVESTMENTS Trevor Brown, Managing Partner and Head of Portfolio Investing
Acelero Learning
Aurora Institute (formerly iNACOL)
Braven
Pioneering provider of HeadStart early childhood
Transforms education systems and advances
College and career success for first generation
education and family engagement services.
breakthrough policies and practices. Aurora
students. Graduates outpace peers in strong job
Students achieve double the gains of HeadStart
Institute has provided expert testimony and
attainment by 23 points.
peers.
lawmaker education on competency-based learning in 30 states and DC.
Social Entrepreneur: Aimée Eubanks-Davis
Social Entrepreneur: Susan Patrick
New Profit Deal Partner: David Levy
New Profit Deal Partner: Helayne Jones
Joined portfolio: 2019
Social Entrepreneur: Henry Wilde New Profit Deal Partner: David Levy Joined portfolio: 2012
Joined portfolio: 2017
EdLoC
Enlearn
GirlTrek
Elevating the leadership, voices, and influence of
Equity-driven learning platform delivering
National health movement that activates Black
people of color in education. In 2019, EdLoC’s
real-time diagnostics and personalized
women to be change makers in their lives and
Boulder Fund dispersed $100,000 each to nine
instruction for underserved students. Recently
communities – through walking. 216K+ women
leaders of color.
partnered with PBS Kids and is on track to reach
have joined the GirlTrek community to date.
4M students by the end of 2019.
Social Entrepreneurs: Vanessa Garrison and T. Morgan Dixon
Social Entrepreneur: Layla Avila New Profit Deal Partner: Trevor Brown Joined portfolio: 2017
Social Entrepreneurs: John Mullin and Zoran Popovic´ New Profit Deal Partner: David Levy
New Profit Deal Partner: Tulaine Montgomery Joined portfolio: 2019
Joined portfolio: 2015 New Profit 2019 Annual Report
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Highlander Institute Partnering with systems, districts, and schools on personalized learning initiatives. 88% of students in Highlander Institute supported classrooms show academic growth and behavior change. Social Entrepreneurs: Dana Borrelli-Murray and Shawn Rubin New Profit Deal Partner: Elizabeth Riker Joined portfolio: 2017
ImBlaze (Big Picture Learning)
Innovate Public Schools
Tech platform enabling real-world internships
Builds the capacity of parents and educators
for high school students. Facilitated over 90,000
to innovate and create world-class public
internship days for students in 90 schools to
schools. Pioneering network scaling in 5 cities in
date.
California.
Social Entrepreneurs: Andrew Frishman and Carlos Moreno
Social Entrepreneur: Matt Hammer
New Profit Deal Partner: Molly O'Donnell
New Profit Deal Partner: Alex Cortez
Joined portfolio: 2017
Joined portfolio: 2015
Instruction Partners Partnering with schools to strengthen teaching and learning in core content areas. Improved instruction by at least 10%, as measured by Instruction Practice Guide (IPG) across all partner schools each year. Social Entrepreneur: Emily Freitag New Profit Deal Partner: Carrie Previtera Joined portfolio: 2019
Leading Educators
LEAP Innovations
PowerMyLearning
Reinventing professional development for
Connecting powerful personalized learning
Award-winning platform brings students,
educators. Programs impacted 2,800+ teachers
approaches to classrooms. 125 school
parents, and teachers together to drive
and 67,000+ students last year.
partnerships and growing in Chicago.
learning. Partner schools outperform comparison
Social Entrepreneur: Chong Hao-Fu
Social Entrepreneur: Phyllis Lockett
schools by 7 points in math proficiency.
New Profit Deal Partner: Doug Borchard
New Profit Deal Partner: David Levy
Joined portfolio: 2015
Joined portfolio: 2015
Social Entrepreneur: Elisabeth Stock New Profit Deal Partner: Shruti Sehra Joined portfolio: 2017
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New Profit Annual 2019 Annual Report Report 2019
Springboard Collaborative Coaching teachers and families to help students cultivate reading habits. Students achieving 6 month reading gains in summer programs. Social Entrepreneur: Alejandro Gibes de Gac New Profit Deal Partner: Kelly Cutler Joined portfolio: 2019
The Health Initiative
The Learning Accelerator
Transcend Education
Spurring a new conversation about – and new
Connecting practitioners and leaders to
Supporting communities to create and spread
investments in – health. Mobilizing an ecosystem
knowledge, tools, and networks to enact
extraordinary, equitable learning environments.
of public and private institutions to increase
personalized learning. Have 150 education
Partnering with 100 district, charter, and private
investments in the known drivers of health.
system partnerships impacting 50,000 education
schools in 20 states to reimagine school.
Social Entrepreneurs: Rebecca Onie and Rocco Perla New Profit Deal Partner: Kim Syman Joined portfolio: 2019
professionals. Social Entrepreneur: Beth Rabbitt New Profit Deal Partner: Kelly Cutler
Social Entrepreneurs: Aylon Samouha and Jeff Wetzler New Profit Deal Partner: Trevor Brown Joined portfolio: 2017
Joined portfolio: 2017
UnboundEd
Valor Collegiate Academies
Zearn
Empowering teachers with high-quality
Growing network of public college-prep
Nonprofit curriculum publisher offering Zearn
classroom resources and professional
charter schools in Tennessee serving a diverse
Math, a top-rated, comprehensive K-5 math
development. Impacted over 10K educators
population. All Valor Schools perform in top 2%
program. Treatment-control study found usage
through direct training and over 256K educators
of state scores in academic achievement and
of Zearn Math is tied to student engagement
through digital learning in 2019.
growth.
and achievement gains after just one year of
Social Entrepreneurs: Kate Gerson and Lacey Robinson
Social Entrepreneur: Todd Dickson
New Profit Deal Partner: Doug Borchard
New Profit Deal Partner: Alex Cortez
Joined portfolio: 2012
Joined portfolio: 2017
implementation. Social Entrepreneur: Shalinee Sharma New Profit Deal Partner: Shruti Sehra Joined portfolio: 2019 New Profit 2019 Annual Report
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New Profit 2019 Annual Report
BUILD INVESTMENTS IMPACT STATS
An assessment of all Build Investments active in 2019 who reported semi-annual data (not including those who joined in 2019) showed the following results:
Scale & Lives Touched
16M 42
lives touched in aggregate by organizations in New Profit’s Build portfolio in 2019 (21 organizations)
states were served by organizations in New Profit’s Build portfolio in 2019
35%
median growth rate of beneficiaries served by Build Investments during their New
58%
of portfolio organizations reported an annual growth rate of beneficiaries served of
49%
average growth of organizations’ geographic footprint over New Profit’s
Profit investment period to date
more than 20% throughout their New Profit investment
investment out of 16 Build Investments active in 2019 that provided locations data
Financial Growth & Sustainability
16% 90%
average growth rate of organizational budgets (based on expenses) of Build portfolio organizations during their New Profit investment period
of Build Investments active in 2019 reported year over year growth in annual budget (based on expenses) throughout their New Profit investment
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CATALYZE INVESTMENTS
PROXIMITY
CIVIC LAB
Our Catalyze portfolio, led by Managing Partner Tulaine Montgomery (Unlocked Futures) (right) and Partner Yordanos Eyoel (Civic Lab, Proximity) (left), included the following organizations in 2019:
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Alliance for Youth Organizing
New Politics Academy
Millennial Action Project
Sarah Aduelo
Emily Cherniack
Steven Olikara
POWER
PushBlack
The People
Rev. Gregory Holston
Darrell Scott
Katie Fahey
Pillars Fund Khasif Shaikh
Aliento
MindRight
MORTAR
Our Voice Nuestra Voz
Reyna Montoya
Ashley Edwards
Allen Woods
Mary Moran
New Profit 2019 Annual Report
PROXIMITY UNLOCKED FUTURES | COHORT 1 (2018-2019) UNLOCKED FUTURES | COHORT 2 (2019-2020)
PAVE
PS 305
Station1
Think of Us
Maya Martin
Yannell Selman
Christine Ortiz
Sixto Cancel
Clean Decisions
Detroit Justice Center
Flikshop
Ladies of Hope Ministries
Will Avila
Amanda Alexander
Marcus Bullock
Topeka Sam
Mission: Launch
Obodo
Prison Scholar Fund
Reentry Campus Program
Teresa Y. Hodge
Jason Cleaveland
Dirk Van Velzen
James Monteiro
Austin Justice Coalition
CURY J
First 72+
Chas Moore
George Galvis
Daniel Tapia
The Forestry and Fire Recruitment Program Brandon Smith
Freedom Project David Heppard
Operation Restoration
Sacred Generations
Unloop
Syrita Steid-Martin
Percilla Frizzell
Gina Castillo
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OTHER CATALYZE INVESTMENTS
CAST
Eye to Eye
GO Public Schools
LiftEd
David Gordon
David Flink
Diego Arambula
Andrew Hill and Joanne Hill
National Center for Learning Disabilities – Young Adult’s Initiative
National Center for Special Education in Charter Schools
YouthBuild USA
Education Cities
Monica Zoreno Martin
Ethan Gray
Lauren Mirando Rihm
Shivohn Garcia
If you have any questions about our portfolio investing, please email New Profit Partner Amina Fahmy at Amina_Fahmy@newprofit.org.
Members of the first Unlocked Futures cohort sit down with members of the second cohort to share insights on growing organizations and entrepreneurship (From left to right David Heppard of Freedom Project, James Monteiro of 18
New Profit 18 New 2019Profit Annual Annual Report Report 2019
Reentry Campus Program, and Will Avila of Clean Decisions).
INVESTING IN CHANGE AT THE SYSTEMIC LEVEL In recent years at New Profit, we have been making frontier investments to support social entrepreneurs, organizations, and initiatives tackling complex social problems with holistic approaches that go beyond (though sometimes include) scaling program innovations or changing public policy. These approaches are rooted in strategies to address deeper levels of change, as described in the “Six Conditions for Systems Change” framework co-developed by New Profit Executive in Residence and former FSG Global Managing Director John Kania:
POLICY
PRACTICES
RESOURCE FLOWS
Structural Change (explicit)
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RELATIONSHIPS & CONNECTIONS
CONDITIONS OF SYSTEMS CHANGE
POWER DYNAMICS
Relational Change (semi-explicit)
MENTAL MODELS
Transformative Change (implicit)
Source: The Waters of Systems Change, FSG (2018)
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NEW PROFIT’S CURRENT SYSTEMS INITIATIVES INCLUDE: Systemic Solutions Initiative (launched in 2019) The initiative, which builds on New Profit’s 20-year track record of transformative social impact investments, aims to back innovative, nimble leaders who see a pathway to disrupting and reshaping systems, and fostering new capacity in them, to achieve equitable and sustainable outcomes. Led by Managing Partner Kim Syman and Executive in Residence John Kania, the initiative has made two initial investments: GirlTrek, the growing national movement addressing Black women’s health; and The Health Initiative, an initiative to transform health care at the state level. Each organization will receive $1.2M total over three years, as well as intensive strategic support from New Profit’s team of partners. A pipeline of additional investments has been vetted for support in the next few years.
“These are groundbreaking leaders who are thinking and acting at a systems level to address problems they understand from experience and care deeply about,” said Syman and Kania. “They embody the qualities of systems awareness, collective leadership, curiosity and continuous learning, and a focus on fostering collective leadership with an equity lens – all qualities we believe are critical for leaders who aim for system-level change.”
Early Childhood Support Organizations (ECSO) Initiative (launched in 2019) Led by early learning pioneer and two-time New Profit portfolio social entrepreneur Aaron Lieberman (Jumpstart, Acelero Learning), ECSO is a new $20M public-private partnership between New Profit and the Commonwealth of Massachusetts Department of Early Education and Care (EEC). The initiative will provide leader and educator development and curriculum resources to support better outcomes for underserved children who are enrolled in Head Start and subsidized child care programs. Early Childhood Support Organizations will serve as intermediary organizations that partner with local center and family-based early childhood providers to help them implement the ECSO’s articulated program model, covering all the areas we know are essential for high-quality program delivery and long-term impact. In 2019, New Profit and EEC built a pipeline and launched an open proposal process. We also held a Scaling Childhood Innovation Summit that brought together over 100 practitioners, policy makers, and funders for dynamic dialogue on the challenges and opportunities in scaling innovative models in early childhood. The Summit featured pitch presentations by 17 high-impact organizations working in the areas of instructional leadership, curriculum, and assessment for early education and care providers. New Profit and the EEC will select ECSO grantees in 2020. 20
New Profit 2019 Annual Report
Learn to Earn (launched in 2016) Led by former New Profit portfolio social entrepreneur Managing Partner J.B. Schramm (Peer Forward), Partner Dr. Angela Jackson, and Partner Kevin Greer, Learn to Earn is a workforce innovation incubator that helps learners from underserved communities navigate the journey to upwardly mobile careers. With the goal of helping develop 10M more career-ready Americans by 2025, Learn to Earn fuels solutions that help learners transition across systems, e.g. moving from high school through postsecondary education, or from today’s jobs into the automated workforce of the future. Currently a $20M initiative, Learn to Earn will double in size over the next three years to build cross-sector initiatives aimed at different transition points along the high school to postsecondary to career continuum, including: •
Postsecondary Innovation for Equity (PIE) initiative: In 2019, PIE launched a public application process to award $100K each to 21 social entrepreneurs working to connect young adults from underserved communities with the postsecondary credentials and work experience they need to access upwardly mobile careers.
•
Future of Work XPRIZE: In 2020, New Profit, in collaboration with the XPRIZE Foundation, will launch a global challenge to incentivize innovators to create solutions that will help entry-level workers gain the skills needed to succeed with automation in the workforce and to earn wages that will allow them and their families to thrive.
•
College Access and Success Learning Lab: Made up of the nation’s leading college access and success nonprofits and funders, this collaborative effort aims to facilitate the transfer of insight and innovation from the field’s nonprofit R&D sector into K-12 and higher education systems.
In addition, Learn to Earn incubates field-level strategies that facilitate innovation focused on: •
Measurement: The College Success Award incentivizes states to collect and publish school-level data on college preparation, college enrollment, and college performance; currently operated by 25 states.
•
Diversity, Equity, and Inclusion: The DEI Initiative aims to demonstrate, through new research and parallel learning communities, that centering diversity, equity, and inclusion enables nonprofits and philanthropic organizations to deepen their impact and foster strong learner outcomes.
•
Learner Activation: Youth Activation in Schools is a student-led strategy for developing agency in learners from primary school to college, which learners need to bridge across the rapidly changing worlds of education and work.
Right: J.B. Schramm challenged private sector leaders to focus on the social impact of the seismic shifts coming in the Future of Work at the 2019 Consumer Electronics Show (CES).
New Profit 2019 Annual Report
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New Profit 2019 Annual Report
We must align our actions with our beliefs and have the courage to do what is right even when it is hardest to do so. Others paved the path for us; we must do so for others. - AimĂŠe Eubanks Davis, Braven
New Profit Annual Report 2019
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2019 PORTFOLIO ALUMNI
In 2019, New Profit wrapped up and
The six organizations are in strong positions to
celebrated partnerships with an extraordinary
continue to deliver concrete impact to constituents,
group of organizations that exited New
change the systems around them, and lead
Profit’s Build portfolio after four+ years of
the country in a new, more equitable direction.
investment: Achievement Network (ANet), Family
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Independence Initiative (FII), Health Leads, Match
While our partnership may formally have ended,
Education, New Teacher Center (NTC), and
we look forward to continuing to be in community
Third Sector.
with these amazing organizations and people.
New Profit 2019 Annual Report
Achievement Network (ANet) Founded in 2004 New Profit Investment Term: 2013-2019 Total Investment: $3,000,000 Social Entrepreneur: Mora Segal
BREAKTHROUGH MOMENT
MORA SEGAL
New Profit Deal Partner: Shruti Sehra
Through an integrated system of tools and training, ANet helps schools and districts boost student learning with great teaching that’s grounded in learning standards, informed by data, and built on the successful practices of educators around the country.
Results: • ANet’s 180 staff members, the vast majority of which are former teachers and school leaders, now partner with more than 700 schools across America • In a gold standard evaluation by Harvard University’s Center for Education Policy Research, funded by the I3 program at the Department of Education, ANet’s schools saw 6 months of additional learning over two years, compared to a control group • During the investment term, ANet doubled its beneficiaries to 343K+ and nearly tripled its expenses to $30M+, a strong indicator of financial growth and capacity
“New Profit helped ANet think critically about how we develop solutions that meet the scale of the problem and to orient towards scaling out impact rather than just replication and growth. Our deal partner, Shruti, has been an invaluable board member, advisor, and critical friend to me and my team, and has played a central role in my growth as the leader of our organization.” Mora Segal, CEO, ANet
A Beautiful Bridge When New Profit invited us into the Reimagine Learning cohort in 2013, they encouraged us to focus on supporting students with learning and attention issues. I remember thinking, 'OK. We’ll focus on the 20% who have these issues, but there's another 80%...' It was a hard choice. New Profit helped me realize that it's not either-or. It’s not zero sum. If we focus on one group, it doesn’t mean we focus less on another. By focusing on this particular subgroup of students strategically, intentionally, and with great care and compassion, we could benefit all students from the school. And it’s been playing out to be just that. We're realizing that high-leverage strategies that focus on this population also have value for all students. Shruti, our deal partner at New Profit, had a vision that this would work. In many ways, she was my guide and broker. She was several steps ahead of us because of her depth of understanding of the issues of ANet's mission and potential for future impact. She was a beautiful bridge that helped create a horizon I wasn't able to see until I extended and walked in.
New New Profit Profit 2019 Annual Annual Report Report 2019
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Family Independence Initiative (FII) Founded in 2001 New Profit Investment Term: 2010-2019 Total Investment: $3,425,000 Social Entrepreneur: Jesús Gerena (succeeded founder Mauricio Lim Miller during term)
BREAKTHROUGH MOMENT
JESÚS GERENA
New Profit Deal Partner: Amina Fahmy
FII trusts and invests directly in low-income families so they can work individually and collectively to achieve prosperity. FII provides a technology platform that enables families to strengthen social networks to support one another in mobility and receive unrestrictive cash investment.
Results: • FII now serves 10,000 people across sites and partnership programs in 15 cities • FII is currently piloting three partnerships with local governments: in Multnomah County with the Oregon Department of Human Services, in Chicago with the City of Chicago, and in Boston with the Massachusetts Department of Transitional Assistance • On average, over 2 years with FII, families report: an increase of 21% in monthly income; a 42% decrease in the overall use of government subsidies like TANF and SNAP; and 88% of students in FII households have excellent, good, or improved grades • 19% of FII participants report becoming entrepreneurs (versus 13% of all Americans)
“New Profit invested in Family Independence Initiative during a critical phase of growth – a time when we were building our internal talent and capacity towards adoption of our approach at scale. Their thought partnership, evaluative expertise, and monetary investment has helped position us for success as we look to the future of our organization.” Jesús Gerena, CEO, FII
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New Profit 2019 Annual Report
Kindred Souls When we first connected with New Profit, we were at a point as an organization where we were trying desperately to figure out how to be able to think about systems change and our approach to really being able to grow our impact – and to what end. The New Profit community helped us bring clarity to how we talk about the problems that the families we serve are facing. It was a collective push from the network that helped us to really crystallize our message that FII’s work is about making poverty escapable. It goes all the way back to getting our initial investment from New Profit. You feel validated, and you also have a community of folks who are chasing lofty dreams and trying to make them concrete. Having those kindred souls around, it's nourishing. So to me, the network is like an extended family. There's always an intentional leaning in. There's an investment in what we're trying to accomplish. And it's rare to find those who are willing to not only write you a check, but actually be your thought partner in the work.
BREAKTHROUGH MOMENT
ALEXANDRA QUINN
Health Leads Founded in 1996 New Profit Investment Term: 2007-2019 Total Investment: $3,100,000 Social Entrepreneur: Alexandra Quinn (succeeded founder Rebecca Onie during term) New Profit Deal Partner: Eliza Greenberg
Push Beyond I remember sitting around a table with a group of New Profit team members and other members of their community who they enlisted to help us create our first strategic plan. In that conversation, the group pushed us to see what was possible beyond our original program model focused on connecting families to resources to improve their health. They pushed us to think about how we could not only create ways to connect families to these resources, but also how to change the systems and root causes that are creating barriers to them accessing the resources in the first place. It enabled us to envision Health Leads as an innovator focused on changing the living conditions in the United States that determine health, from what people eat to where they live and how they pay for electricity. They helped us better understand the end game and how we could use our advocacy skills to influence people in power to think differently about social determinants of health and address the underlying causes of health inequities in our country.
Health Leads has been working with health care systems and communities across the country for more than 20 years to improve the living conditions that drive health (also called social determinants of health or health related social needs). The organization is innovating a new set of practices for how communities build and allocate their resources so that everyone, in every community, can achieve health, well-being and dignity.
Results: • Drove full adoption of Health Leads interventions at leading health systems including Kaiser Permanente Southern California, Massachusetts General Hospital, University Hospitals Cleveland, Johns Hopkins Health System, NYC Health+Hospitals, Dayton Children’s Hospital, and many others • Created and drove thousands of downloads of a range of practical tools and resources – including the Essential Needs Roadmap and Screening Toolkit – and facilitated interactive learning opportunities like the two-year Collaborative to Advance Social Health Integration • In partnership with NYC Health + Hospitals, NYS WIC and Robin Hood Foundation, Health Leads launched a first of its kind WIC connection initiative deploying community health workers and enrolled over 2,000 women and their family members to critical food and nutrition benefits, ultimately resulting in New York State WIC making policy changes to address identified barriers
“When I stepped into the CEO role at Health Leads, New Profit – at all levels – hugged me closer. Our Deal Partner, Eliza Greenberg, has been such an invaluable coach and mentor to me, and she made it less lonely as I was stepping into that role. Funders don’t have to do that. There is a level of empathy that New Profit brings to our partnership that enables true, bidirectional growth. I can be honest and open with their entire team, which I consider a group of trusted peers.” Alexandra Quinn, CEO, Health Leads
New Profit Annual 2019 Annual Report Report 2019
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Match Education Founded in 2000 New Profit Investment Term: 2015-2019 Total Investment: $2,000,000 (inclusive of separate $1M grants to both Match Education and Duet, formerly known as Match Beyond) Social Entrepreneur: Nnenna Ude (Match Education; succeeded Stig Leschley during term); Mike Larson (Duet) New Profit Deal Partner: Alex Cortez
Match Education operates a high-performing network of nonprofit public charter schools, its own graduate school of education, and a digital open education resource sharing platform – Match Export – that codifies and shares Match's curriculum and instructional coaching with educators around the world. In 2014, Match Education launched Match Beyond, which offers accelerated associate’s and bachelor’s degree programs through a hybrid approach in partnership with Southern New Hampshire University. In July 2018, Match Beyond was renamed as Duet and relaunched as its own nonprofit, independent of Match Education, allowing Duet to operate more freely in the higher education space, while the rest of the Match programs continue to operate in the K-12 education field.
Results: • Between 2016 and 2018, Match Education launched three open educational resource websites: Match Minis (hosting a library of short, animated videos that share best practices for teachers that has been accessed by over 176K unique visitors); Match Fishtank (hosting all of the match and English Language Arts (ELA) curriculum used at Match Charter Public School, which has had more than 875K unique visitors); and Match Schoolhouse (offering practical, low-cost, on-demand professional development courses covering topics in teaching practice, instructional coaching, and curriculum implementation) • In its first four years of operation, Match Export has reached over one million educators both in the US and globally • 197 degrees have been conferred by SNHU to students enrolled through Duet; average time to Associate degree completion is 16 months and 84% have completed in 2 years or less, and average time to Bachelor’s degree completion is 32 months and 60% completed in under 3 years
"As a member of New Profit's portfolio, we have experienced a meaningful partnership for many years. New Profit’s multi-year funding helped us grow the various programs within our organization, allowing us to serve more students in our charter school and graduate school and reach more educators through our online resources. New Profit also invested in our organization through human capital, most notably on our Board of Directors where expertise and networks have helped to grow our brand as a nationally recognized education reform organization." Nnenna Ude, CEO, Match Education
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New Profit 2019 Annual Report
BREAKTHROUGH MOMENT
DESMOND BLACKBURN
New Teacher Center (NTC) Founded in 1998 New Profit Investment Term: 2009-2019 Total Investment: $5,000,000 Social Entrepreneur: Desmond Blackburn (succeeded founder Ellen Moir during term) New Profit Deal Partner: Shruti Sehra
A Critical Friend Part of what makes NTC’s work of tackling the achievement gap in education so difficult is that it is really easy to create a problem by trying to solve a problem. It is really easy to recreate disparate treatment toward one group by trying to cure it for another group. So, it's a very, very delicate conversation and mindset you have to have. But New Profit isn’t shy about just jumping in. That mindset created a flame, if you will, for us to ignite and reimagine our vision and mission. The contribution New Profit brings is being a role model on how to tackle and bring attention to the big issues. We also have a close proximity relationships with Shruti Sehra, our New Profit Deal Partner and Board Chair. She's a great critical friend. With Shruti, it all comes back to pressure and support. Humans need – and organizations need – comfort and reassurance that we're doing the right thing. But we also need that critical friend who says, 'There's so much more you can do!' but then goes on to say, 'And here are some suggestions on how to do it.
NTC believes that every student deserves an excellent and equitable education. NTC works to disrupt the predictability of educational inequities for systemically underserved students by accelerating educator effectiveness.
Results: • Last year, NTC impacted 1.85M students by supporting 25,300 teachers in 260 districts across 26 states; NTC is now actively working with teachers and other leaders in 43 of the largest 200 districts in the country • An evaluation during the New Profit investment period showed that when teachers participate in the NTC induction model, students gain up to five months of additional learning • A district level evaluation showed that, after two years of NTC support, new teacher retention in Hillsborough County Public Schools District increased 31%, and 90% of NTC-trained mentors and coaches remained in the district after five years; with decreased turnover rates, districts were able to save funds and resources while investing and supporting educators who were able to increase student learning over time
“I have often thought of the partnership with New Profit as invaluable; filled with strategic thought partnership and guidance on staying at the cutting edge of an evolving educational landscape.” Desmond Blackburn, CEO, New Teacher Center
New Profit 2019 Annual Report
29
Third Sector Founded in 2012 New Profit Investment Term: 2015-2019 Total Investment: $1,000,000 Social Entrepreneur: Caroline Whistler (succeeded George Overholser during term)
BREAKTHROUGH MOMENT
CAROLINE WHISTLER
New Profit Deal Partner: Deborah Smolover
Third Sector works with state and local governments, providers, and their partners to strengthen social service delivery and improve lives through innovative financing and other tools.
Results: • Third Sector has led 65 engagements with governments, nonprofits, private investors, and researchers across the United States, with 42 county-level engagements, 19 state-level engagements, and 4 national cohorts of public agencies working to implement outcomesoriented funding for human services • Third Sector has partnered with government to deploy $805M towards measurable results for communities through 320 outcomes-oriented contracts across 17 projects, promoting better outcomes in critical areas including mental health, homelessness, family stability, and economic opportunity for more than 120,000 underserved people • In July 2020, planned deployments of additional funding in Los Angeles County will make Third Sector the first organization in our field to implement more than $1B in government funding for outcomes • On the policy front, Third Sector has partnered with America Forward to secure $1.7B in Federal funding authorized to pay for outcomes by elevating insights from our experience in the field to support the America Forward coalition's advocacy efforts: $700M through the Workforce Innovation and Opportunity Act; $350M through the Every Student Succeeds Act; and $200M through the Social Innovation Partnerships to Pay for Results Act (SIPPRA), and the Maternal, Infant, and Early Childhood Home Visiting Act (MIECHV)
“New Profit has been an instrumental partner for Third Sector by both providing critical financial support and enabling us to explore more equitable, human-centered approaches to improve our impact and create lasting systems change.” Caroline Whistler, Co-Founder and CEO, Third Sector
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New Profit 2019 Annual Report
Equity & Evaluation In September, I attended a New Profit workshop on how to evaluate systems change work with an equity lens. At Third Sector, we are focused on both driving systems-level change and evaluating the impact of our work at a systems and community level. We also are committed to racial equity as an organization and to reducing racial disparities in outcomes through our work. At the workshop, I realized that I hadn’t fully grappled with the intersection between equity and evaluating systems change work, the 'how' we do the work we do and how we show up as people to that work. We discussed how traditional approaches to evaluation have historically played a role in perpetuating inequality, which helped me reconsider evaluation approaches with a racial equity lens. My conversations that day with other organizational leaders helped me think about how Third Sector can start to create spaces and structures to do ongoing, strategic learning and reflecting as an organization in tandem with more formal evaluation. My hope is that we can apply these learnings to create more equitable evaluation approaches for our organization, and to more fully incorporate racial equity into our systems change work.
Breaking through means we need to open our eyes much wider to see the true scope of entrepreneurial talent and new models for impact that are rising in America.
New Profit Annual Report 2019
31
03
Ecosystem Building Our Journey to Inclusive Impact In 2019, New Profit launched Inclusive Impact, a comprehensive
In 2018, New Profit commissioned research from Next Street
effort to advance social and economic mobility by supporting
with support from the Bill & Melinda Gates Foundation which
our nation’s most promising and under-resourced social entre-
found that despite making up 30% of the population, Black and
preneurs and other leaders.
Latinx leaders hold only 10% of CEO positions at nonprofits and receive only 4% of grant funding.1
Core to this effort is the fact that while America is growing more diverse, we are failing to recognize, support, and empower
We know from our research and experience that Black, Latinx,
Black, Latinx, and Indigenous problem solvers, despite the fact
and Indigenous leaders face particular barriers that lead to these
that they:
disparities, including:
•
Often design with an eye to the multi-dimensional root causes of issues;
•
Are proximate to the communities we seek to serve; and
•
Respond with innovative, systems-oriented products and services.
To make meaningful progress, we need to address the unequal access to funding, opportunity, and influence within the social sector today and remove the systemic barriers to capital and support for Black, Latinx, and Indigenous leaders.
1
Different burdens of proof: They are perceived as “riskier” investments and are often required to provide extension documentation, proof, or references before funders are comfortable investing in them Smaller dollar, short term grants: These leaders often receive small grants for short periods (e.g. <12 months) that leave them in a mode of constantly fundraising Lack of accessible growth capital: Funders prefer to give them restricted programmatic capital over more flexible capital they could use for growth and/or capacity building
This research analyzed data on Black and Latinx leaders in the social sector. We have since expanded our strategy to include Indigenous leaders.
We partner with social entrepreneurs and other leaders in our community to shift how government and philanthropy pursue social change to ensure that all people can thrive.
Tulaine Montgomery Managing Partner, Inclusive Impact New Profit
New Profit 2019 Annual Report
33
Above: The 2019-20 Unlocked
Our journey
Futures cohort gathers with Grammy-award winner and Founder of FREEAMERICA, John Legend.
to understanding these barriers for leaders of color and developing a strategy to address them began more than five years ago, propelled by conversations among the New Profit team, portfolio, and broader network. Here is a snapshot of key moments in our journey over the past several years that led to launching Inclusive Impact:
15
20
• New Profit’s 2015 Gathering of Leaders featured conversations on
16
20
the role of philanthropy in reinforcing systemic inequities, prompting
• New Profit’s 2016 Gathering of Leaders – whose theme was Equity.
New Profit and our community to reflect on how we might be
Inclusion. Impact – was designed to dig deeper on these topics
perpetuating the same barriers and systemic inequities we sought
through conversations ranging from a panel on Teach For America’s
to eliminate
journey towards Diversity, Equity, and Inclusion to a discussion on path-breakers featuring Brittany Packnett (Executive Director, St.
• New Profit launches an initiative to accelerate the potential of
Louis Region, Teach For America; Leader, Black Lives Matter) and
extraordinary female social entrepreneurs and the impact of their
Deval Patrick (Former Governor, Commonwealth of Massachusetts;
organizations
Managing Director, Double Impact, Bain Capital)
• New Profit’s staff came together to read Michelle Alexander’s The
• We held Pipelines with Purpose, a half-day symposium designed
New Jim Crow and discuss issues of diversity, equity, and inclusion,
to increase and diversify the talent pipeline for the social sector in
which led to the launch of our internal Diversity & Inclusion Group
Boston
(DIG) • We launched the #AdvanceEquity digital campaign to drive dialogue and inspire action to advance equity in America
34
New Profit 2019 Annual Report
17
20
• New Profit launches its Proximity initiative to support visionary social entrepreneurs of color with a $50,000 one-year grant, advising from New Profit partners, and a peer learning community; the first cohort included eight leaders of color from across the country leading efforts in education and beyond • New Profit’s 2017 Gathering of Leaders featured conversations on funders and diversity, equity, and inclusion, as well as the power dynamics of funder-grantee relationships
19
20
New Profit launches Inclusive Impact with a focus on four key levers for change: 1. Shift and increase the flow of capital and capacity-building support to Black, Latinx, and Indigenous social entrepreneurs 2. Develop philanthropic leaders of color to leverage their capabilities
• New Profit launches Unlocked Futures, an initiative designed to support social entrepreneurs directly impacted by the criminal justice system, which disproportionately affects communities of color
and insights 3. Build capacity of organizations and sector networks to be more diverse, equitable, and inclusive 4. Expand diversity, equity, inclusion (DEI)-related data collection and
18
20
• New Profit’s 2018 Gathering of Leaders featured a track on capitalizing diverse leaders and organizations where we first shared the key findings from NextStreet’s research on the capital gap for leaders of color in the social sector • New Profit’s Learn to Earn initiative launches an effort focused on building the Diversity, Equity, Inclusion (DEI) capacity of leading nonprofits and researches which types of DEI-focused efforts are most effective in advancing equitable outcomes in the postsecondary space • New Profit’s Proximity initiative invests in a second cohort of eight social entrepreneurs of color
Above: Unlocked Futures entrepreneurs discuss the importance of supporting entrepreneurs and hiring people who have been impacted by the criminal justice system with a news reporter.
analysis
Between January and June, New Profit convened thought leaders and launched working groups to discuss priorities and strategies to support Black, Latinx, and Indigenous leaders oriented around these four levers. During the second half of 2019, New Profit partnered with Deloitte to develop a strategic plan for Inclusive Impact, which includes commitments for New Profit to make 50% of Build Investments and 80% of Catalyze Investments in organizations with Black, Latinx, and Indigenous leaders over the next five years. Led by New Profit Managing Partner Tulaine Montgomery, this initiative aims to develop a multiracial and multi-ethnic network of philanthropists, practitioners, institutional funders, and social impact stakeholders who are committed to equity and catalyzing resources to ensure the success of organizations led by Black, Latinx, and Indigenous leaders that are driving impact and opportunity for all. New Profit 2019 Annual Report
35
AMERICA FORWARD’S 2020 PRESIDENTIAL CAMPAIGN America Forward is New Profit’s DC-based nonpartisan policy initiative. America Forward leads a national advocacy Coalition of innovative, evidencebased organizations, and unites social entrepreneurs with policymakers to pursue a public policy agenda that advances equity, fosters innovation, rewards results, and catalyzes cross-sector partnerships. Together, America Forward Coalition members champion innovative and effective solutions to our country’s most pressing problems and translate local impact into national change.
America Forward by the Numbers:
2008 100+
America Forward founded
The America Forward coalition had 100+ member organizations in 2019
15,000+
America Forward Coalition members operate in over 15,000 communities in all 50
$1.7B
As of 2019, America Forward’s advocacy efforts resulted in $1.7B in federal funding
5
The top five pieces of bipartisan legislation in which America Forward played a
states and collectively serve more than 9M Americans
per year made available to pay for outcomes
successful advocacy role include: the Edward M. Kennedy Serve America Act (2009), the Workforce Innovation and Opportunity Act (2014), the Every Student Succeeds Act (2015), the Strengthening Career and Technical Education for the 21st Century Act (2018), and the Social Impact Partnerships to Pay for Results Act (2018)
United to Move America Forward In 2020, Americans will go to the polls to choose a President and determine the direction of our country. Americans’ votes will be cast against a backdrop of widening political polarization, increasing incivility, and eroding civic trust that is both affecting our national policies and impeding our collective potential. America Forward is galvanizing its community of innovators and advocates to engage in this pivotal election cycle and mobilize with a different message: social entrepreneurs and other problem-solvers across the nation can help unite our country and lead the way to a new era of purpose and progress with increased equity and expanded opportunity. During 2019, under the leadership of New Profit Managing Partner and America Forward Executive Director Deborah Smolover, America
10 Years of Leadership and Impact
Forward has been laying the groundwork for a major effort to bring
A decade ago, when it launched prior to the 2008 election, America
the voices and powerful policy ideas of social entrepreneurs to
Forward was a small but mighty group of social entrepreneurs
Presidential candidates, Members of Congress, and state and local
who believed in the power of collective advocacy. Today, the
policymakers in 2020.
Coalition is recognized as the leading collective voice of social entrepreneurs on Capitol Hill. In addition to America Forward’s
America Forward’s 2020 campaign effort started with in-depth
campaign engagement, America Forward remains committed to
conversations with social entrepreneurs and other leaders around
its ongoing collective advocacy efforts in early learning, elementary
the country – 150 conversations in total around a dozen roundtables
and secondary education, post-secondary and higher education,
– to gather insights from organization leaders and solution-creators
workforce development, and criminal justice system reform.
proximate to the issues their programs seek to address. The aim was to lift up bold new policy ideas that can drive lasting impact.
America Forward also continues to serve as a leader on the future of Pay for Success, the unique, cross-sector approach to funding what
The input from the network, staff, and strategy advisors led to the
works locally, and evidence-based policy. With so many Coalition
creation of the Coalition’s 2020 campaign policy playbook: United
members at the cutting edge of the Pay for Success field, and with
to Move America Forward. The key tenets and policy ideas in this
a growing cohort of social entrepreneurs who are building strong
platform originated from the work of our groundbreaking Coalition
evidence of effectiveness, America Forward is well-positioned to
members and captured their collective vision on how people learn,
champion this work in 2020 and beyond.
how to create conditions so all adults and families can thrive, and how to make government work better for everyone. The briefing
The new America Forward Advocacy Institute – designed to build
book offers a path forward on how America can fulfill its potential
better, bolder advocates by providing social entrepreneurs and their
as a place where everyone can thrive, no matter their background.
organizations with specialized advocacy training – also launched in 2019. The America Forward Advocacy Institute builds organizations’
Over the course of 2020, America Forward will use the United to
policy capacity and advises leaders on how to include advocacy
Move America Forward policy briefing book to engage bipartisan
as a core element of their systems change strategy. The America
policymakers and all of the 2020 Presidential campaigns, conduct
Forward Advocacy Institute also builds the policy capacity of the
site visits for candidates to Coalition organizations, and host town
America Forward Coalition and strengthens its impact advocating
halls and community forums lifting up bold new policy ideas in the
for America Forward policy priorities.
context of the election cycle. Finally, America Forward opened a new office in Washington in 2019 and the America Forward DC team expanded. Our staff directors now include External Affairs Director Jessica Crawford, Above, right: America Forward Advocacy Director Nithya Joseph
Advocacy Director Nithya Joseph, Policy Director Roger Low, and
engages in a conversation with social entrepreneurs on individual
Government Affairs Director Karen Quarles.
and collective advocacy opportunities.
New Profit Annual Report 2019
37
38
New Profit 2019 Annual Report
New Profit Staff
BREAKTHROUGH MOMENTS
TWO-WAY STREET Adetola Olatunji Recently, I met with an entrepreneur to discuss our emerging work together in diversity, equity, and inclusion. While I wanted to focus on highlighting our entrepreneur collaborators, this entrepreneur proposed that I also facilitate a discussion between her and the other partnering entrepreneurs in this work. I hesitated and responded by saying I wanted to make this about the entrepreneurs doing the work, a statement to which they responded: "Adetola, you have earned the right to be seen as a leader in this field and a leader of this initiative." It took a little while for me to fully process the impact of this statement, but it was a powerful one. I realized this was a breakthrough moment for me both personally and professionally. Personally, this encouragement prompted a moment of selfreflection around the importance of stepping more fully into my power and leadership footprint in this work. Professionally, I think this highlighted the two-way street we navigate in relationships with entrepreneurs in our community. We strive to provide unique value and true benefit to the entrepreneurs with whom we partner. At the same time, we also benefit from our partnerships with this community of entrepreneurs who are both doing incredible work and have powerful insights on who we are as individuals.
New Profit 2019 Annual Report
39
NEW, EXCITING ENERGY Lizzie Kaplan This year the Investor Relations Team hired four new team members – all incredible young people. We had an opportunity to step back and think about how we wanted to refresh and evolve the way that we partner with our investors on their journey with us, and we were so lucky to find new team members who are natural connectors and bridgebuilders. Three of the four are just coming out of college. They're closer to our work than a lot of us! They have fresh ideas when it comes to technology, or explaining our impact, or introducing us to new networks. They bring a completely different perspective. The breakthrough moment I had was realizing that these few new team members had the power to infuse this totally new, exciting energy into the staff, and by extension, all the way out to our investors. Our team represents different work and life experiences, backgrounds, philosophies...and it has changed New Profit for the better. I'm thrilled to have their perspectives and talent – and I know our investors will be, too!
STEPPING BACK & UP Lisa Taylor This year, I started to realize what it means to be a White person in diversity, equity, and inclusion (DEI) work. Over the last few years, New Profit has committed to building a racially diverse team, fostering inclusion, and centering our work in equity. In addition to full team trainings and discussions, we started to meet in racial affinity groups. I knew this was important but honestly, it felt weird at first. But as the White Affinity Group started, I remember looking around and it finally sinking in how important this group is in our team’s DEI work. I realized our collective stance – mine included – needed to shift from passive to active, which I think can feel
EQUITY AT THE FOREFRONT Shruti Sehra
our place is in equity and inclusion work because we are taught that we don’t have a race, and to some extent that this work is not
New Profit’s education work over many years has been committed
ours to do. It started to click for me that White people both need to
to advancing equity with a particular focus on the sub-groups of
practice listening more deeply to and elevating the voices of People
students who have been systematically underserved. As with any
of Color AND push ourselves to speak up (especially with each
complex problem, we have had to constantly hold two conflicting
other), develop our own racial identities, feel uncomfortable, learn
but important perspectives (per the Stockdale Paradox): we need
about historic and current systemic inequities, and experiment with
to acknowledge our harsh reality while also knowing that we will
new ways of behaving. We need to step back AND step up. Feels so
ultimately prevail. While we have been working to advance the link
obvious now, but it was a breakthrough!
between social and emotional learning (SEL) and academic learning, we also recognize that historically, not all SEL work has shared our strong equity bent. That said, I recently attended CASEL’s inaugural SEL Exchange Conference where I saw over 1,500 attendees come together to explicitly talk about how SEL without a focus on race, equity, and inclusion was insufficient. Rob Jagers from CASEL and a panel of extraordinary leaders closed the conference with a framework and examples of how transformative SEL can bring equity to the forefront. I left with an unrelenting belief that SEL is an important tool in advancing equity and social justice and with new hope knowing that there are over 1,500 other leaders who are also committed to realizing its promise. 40
unnatural as a White person at first. We sometimes wonder what
New Profit 2019 Annual Report
MEASURING WHAT MATTERS Alex Cortez Nonprofit leaders are incredibly results-driven, but that’s not the same as being measurement-driven. At New Profit, we work with many of our grantees to help them measure what matters to maximize their impact. However, only recently have I really come to understand the privilege embedded in getting to decide what to measure. As Laura Esquivel writes, “Whoever controls information, whoever controls meaning, acquires power.” So often in education reform – be it philanthropy or practitioners – because we control what gets measured, we shape the agenda and risk projecting our values on a community. Those of us in education reform need to step back and let measurement be more explicitly shaped by the community, just as much of the education reform agenda also needs to be driven by the community (and measurement and agenda are inextricably linked). At the end of the day, every community has its own definition of happiness. It cannot be
FINANCE FOR IMPACT Ian Magee
imposed. If we want to help, we have to honor a community's requirements for what that definition is, how it is achieved, and – I would argue – how it’s measured.
My breakthrough this year is that we’ve really come to a moment where our financial strategy, systems, and processes have been totally transformed to carry us into future growth and greater impact. I’ve been leading a small (but mighty!) team focused on this work for a few years, from developing a custom financial planning model to refining our financial narrative to bolstering our unrestricted cash reserves, which is so important to an organization like New Profit. Members of the board have been great partners in this effort, and we feel like we are in a great place for the future.
THEY GET IT Kim Syman The breakthrough moment for me this year was when New Profit’s board approved our first two investments in the new Systemic Solutions Initiative. It's our effort to back innovative, nimble leaders who see a pathway to disrupting and reshaping systems, and our first two grantees are GirlTrek and The Health Initiative. We've known for a long time that social entrepreneurs who are scaling their programs develop a deep understanding of the systemic conditions that need to change for large-scale, sustained progress to unfold. But this is the first time in our history we've been able to make major investments in entrepreneurs whose primary approaches go beyond replicating program innovation. I see the field of philanthropy beginning to move in this direction as well, recognizing that what makes social problem so sticky often is not the lack of programmatic solutions to social problems – though we do need those – but more fundamental things, like beliefs, values, relationships and networks, or how power flows. We are excited to learn, offer insight, and help to lead in a movement towards more holistic strategies for social change.
New Profit 2019 Annual Report
41
The power to break through is about the growing inclusivity, impact, and potential of our community. We are full of hope about what we can achieve together.
42
New Profit 2019 Annual Report
Vanessa Kirsch Founder and CEO
Sara Conahan Managing Partner, Investor Relations
Tulaine Montgomery Eliza Greenberg
Doug Borchard
Managing Partner, Executive Team
Managing Partner and Chief Operating Officer
Managing Partner, Inclusive Impact
Ian Magee Managing Partner and Chief Financial Officer
Not pictured:
Trevor Brown Managing Partner, Portfolio Investing New Profit 2019 Annual Report
43
BOARD OF DIRECTORS Steve Barnes
Josh Bekenstein
Managing Director
Managing Director
Bain Capital
Bain Capital
Sam Cobbs
David Gergen Founding Director
CEO
Center for Public Leadership
Tipping Point Community
Professor of Public Service Harvard Kennedy School
Paul Grogan President & CEO The Boston Foundation
Stacy Janiak Managing Partner â&#x20AC;&#x201C; Chief Growth Officer Deloitte Consulting LLP
Stephen M. Jennings
Vanessa Kirsch
Principal
Founder and CEO
Monitor Deloitte Consulting LLP
New Profit
Wendy Kopp
Matt Levin
CEO
Founder and Principal
Teach For All
Investor Twin Shores Capital
44
New Profit Annual Report 2019
Henry McCance Chairman Emeritus Greylock Partners
Duncan McFarland The Bromley Charitable Trust
Valerie Mosley
Kristin Mugford
CEO
Senior Lecturer
Valmo Ventures
Harvard Business School
Mark E. Nunnelly
Jim Pallotta
Former Secretary of Technology
Chairman & Managing
Service and Security
Director
Commonwealth of Massachusetts
Raptor Group
John Rice
Brian Spector
Founder & CEO
Chairperson
MLT
Reflow Medical
Venkat Srinivasan
Jeffrey C. Walker
Managing Director
Chairman
Innospark Ventures
New Profit
New Profit Annual Report 2019
45
DONOR ROLL Investors
Mark and Carolyn Ain
ECMC Foundation
Hinda and Joel Miller
The Boston Foundation
Shakeeb Alam
Paul and Sandy Edgerley Bain Capital
Valerie Mosley
The Bromley Charitable Trust
American Express
Kristin and Stephen Mugford
The Hirsch Family Foundation
Anonymous (7)
Michael and Barbara Eisenson Charles Bank Capital Partners
FW Murphy Family Foundation
The Joyce Foundation
AT&T
Stuart and Randi Epstein
Matt and Einat Ogden
The Kresge Foundation
Pauline and Robbie Bach
Domenic and Molly Ferrante
Christine Olsen and Rob Small
The LEGO Foundation
Bank of America Charitable Foundation
Bill & Melinda Gates Foundation
James and Kim Pallotta
The McCance Foundation
Josh and Sarah Greenhill
Saul Pannell and Sally Currier
The Omidyar Group
M. Roch Hillenbrand The Hillenbrand Family Foundation
Peery Foundation
The Reeder Foundation
Dwight and Kirsten Poler
Stephen M. Jennings and Monica O'Neil
Jane Rappeport
Lynda and Jeffrey Bussgang
The Doris & Stanley Tananbaum Foundation Zoe & Jon Bernstein Jo Beth & William Abecassis Tanner & Abigail Tananbaum
Kevin and Julie Callaghan Berkshire Partners
Ewing Marion Kauffman Foundation
Deborah and Steve Barnes Bain Capital Josh and Anita Bekenstein Bain Capital
Carnegie Corporation of New York Chan Zuckerberg Initiative DAF Silicon Valley Community Foundation
46
M K Reichert Sternlicht Foundation Arthur and Toni Rembe Rock
The Peter and Elizabeth C. Tower Foundation
Maurice and Luly Samuels
Tower Family Fund
Ann and Richard Sarnoff Family Foundation
Travelers Foundation
Florence Koplow Jonathan and Jeannie Lavine Bain Capital Matt Levin Bain Capital
Ronald Schrager and Wendy Hart
Lauri Union and Stanley Rosenzweig
Howard P. Colhoun Family Foundation
Leon Lowenstein Foundation
Edward and Barbara Shapiro
Jeffrey C. and Suzanne C. Walker
Commonwealth Children's Fund
Lumina Foundation
Siegel Family Endowment
Walmart
Estate of Kathryn W. Davis
JB Lyon and Kim Syman
Alan and Susan Solomont
Walmart Foundation
Michael & Susan Dell Foundation
A.L. Mailman Family Foundation
Brian and Stephanie Spector
Walton Family Foundation
Deloitte
Anne and Paul Marcus
Venkat and Pratima Srinivasan
Ted and Lisa Williams
Alisa and Dan Doctoroff
Henry McCance
State Street
Jean and Rick Witmer
Doran Family Charitable Trust
Douglas and Audrey Miller International Private Equity Limited
Strada Education Network
Jan and Steve Zide Zide Family Foundation
New 46 ProfitNew 2019Profit Annual Annual Report Report 2019
Peter Swift and Diana McCargo
Supporters Anonymous (2) Appletree Institute for Education Innovation Dan and Robin Catlin
Fisher Markin Fund The Chicago Community Foundation
Matic Malovrh
Alan Silberstein
Elisabeth Mason
Diana M. Smith
Fund for Essex County Excellence Reserve of the Essex County Community Foundation
Joe McCannon
Cathy and Sean StannardStockton
Peter D. Hart
Rose-Marie and Eyk van Otterloo
Tom Higley
Own The Room Foundation
Cathleen London
T. Rowe Price Foundation
Tom O'Rourke
Adria Chamberlain
Sharon Syman
Croan Family Foundation
The Tow Foundation
Cutler Partners, LLC
Peter and Laurie Thomsen
Keri Dogan and Mark Hamel Peter Sarnoff
James Weinberg FUSE Corps
New ProfitNew Annual Profit Report 2019 Annual 2019 Report 47
47
2018
Financials
21% Corporations and Foundations
70%
7%
Individuals and Family Foundations
In-Kind Services
2%
REVENUE BREAKDOWN
Program Fees and Other Misc.
Individuals and Family Foundations
$21.0M
Corporations and Foundations
$6.3M
In-Kind Services $2.0M
48
New Profit 2019 Annual Report
Program Fees and Other Misc.
$0.8M
TOTAL REVENUE
$30.1M
NET ASSETS CHANGE IN NET ASSETS
$5.2M
Change in restricted
$4.8M
Change in unrestricted
$0.4M
TOTAL NET ASSETS
$49.9M
Restricted $46.7M Unrestricted $3.2M Ian Magee, New Profit's Chief Financial Officer
EXPENSE BREAKDOWN Impact Programming: $20.1M
Portfolio Investing
Ecosystem Building
New Profit Infrastructure*
Portfolio Grants
America Forward
Administration
Grantee Support
Gathering of Leaders/ Convenings
Development
Deloitte Pro Bono Select Donor Supported Initiatives
Field Building
Communications: Legal/Strategy Pro Bono
64%
16%
20%
$16.0M
$4.1M
$4.8M
TOTAL EXPENSES = $24.9M
Numbers may not add due to rounding. New Profit 2019 Annual Report
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New Profit 2019 Annual Report
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