New Profit 2020 Annual Report

ANNUAL

REPORT

2020

NEW PROFIT 2020 ANNUAL REPORT

1

NEW PROFIT 2020 ANNUAL REPORT

41

ABOUT QR CODES

Throughout this 2020 Annual Report you will see QR codes, like the one pictured here. These lead to New Profit’s online Annual Report and, when you hold your phone’s camera over them, will launch exclusive interactive content from our website for you to explore on your phone.

If you are not familiar with a QR code they are simply a version of a barcode that will offer additional information about a topic when scanned. Unlike the traditional barcode you don't need any special equipment to scan a QR code.

On IOS or Android, here’s all you need to do: STEP 1:

Open up the Camera app.

STEP 2:

Hold your device so that the QR code takes up most of your screen and stays in focus. Make sure you can still see all four corners of the QR code. Don’t take a picture; just hold it there. For Android phones only, press the magnifying glass icon.

STEP 3:

A notification will appear. Click on the link to launch the exclusive New Profit online content.

If you find that your phone can't scan a QR code as outlined above, you can download any number of free QR code readers from your device’s app store or enter this url into any browser to view our online Annual Report content: https://www.newprofit.org/2020-annual-report We’re excited to offer a new way to experience our story and hope you give it a try!

NEW PROFIT 2020 ANNUAL REPORT

1

G E O R G E G A LV I S Executive Director of Communities United for Restorative Youth Justice (CURYJ), a New Profit grantee-partner that works to end cycles of violence and poverty by uplifting young people of color that have been impacted by incarceration to lead the way in transforming their community and developing the policies that impact them.

NEW PROFIT 2020 ANNUAL REPORT

2

Table of Contents 4 6 8 16 22

30 32 35 38

MEETING THE MOMENT PORTFOLIO BUILD INVESTMENTS CATALYZE INVESTMENTS SYSTEMS CHANGE INITIATIVES •

Inclusive Impact Action Summit and Proximate Capital

•

Systemic Solutions Initiative

•

Civic Lab

•

Future of Work XPRIZE

•

Education

•

Early Childhood Support Organizations

•

America Forward

LEADERSHIP BOARD OF DIRECTORS DONOR ROLL FINANCIALS

NEW PROFIT 2020 ANNUAL REPORT

3

Meeting the Moment This year has been full of collective trauma. The COVID-19 pandemic and the socio-economic crisis it has triggered, as well as the tragic killings of Black people

I N C L U S I V E I M PAC T

by police, have had devastating impacts across the

Our Inclusive Impact strategy, which emerges

spectrum of life in America. But we must acknowledge

through all areas of our work, is a comprehensive,

that the true weight of lives lost, livelihoods destroyed,

systems-change approach that centers proximity

lost learning time, and decaying social cohesion has

as expertise and seeks to address entrenched

been bore most heavily by systematically underserved

disparities facing leaders of color in philanthropy.

communities, particularly communities of color.

The core vehicle for our Inclusive Impact strategy is Proximate Capital, a $100M fund to dramatically

The totality of inequity in America has been on

expand the flow of capital and capacity-building

full display in 2020, across systems of economic

supports to Black, Indigenous, and Latino/a/x social

opportunity, health, education, justice, and others. The

entrepreneurs and social impact leaders.

resulting whirlwind has provided a stark warning to all of

(See page 22)

us that we cannot stand still and hope for a return to the pre-COVID status quo.

SYSTEMIC SOLUTIONS As noted above, the converging crises of 2020 have

Our responsibility is to stand strong in support of

starkly illustrated the inequities produced by our

redesigning these systems to provide equity and

social systems, and our Systemic Solutions initiative

opportunity for all. New Profit’s community is in a

is leading the way in philanthropy to help equip

unique position to do so, because the breakthrough

social entrepreneurs and other leaders with the

social entrepreneurs and other leaders we are

support and tools needed to take on these crises at

supporting today are already showing powerful,

scale. (See page 23)

proximate leadership in those redesign efforts.

We are energetic and optimistic that our grantee-

4

partners will continue to lead the way towards an

This is a fraught moment in our country, but we feel

equitable future. We will continue to do everything

tremendous resolve and energy to step up and meet it

we can to support them with our signature mix of

as we look ahead into 2021 and beyond. We are blessed

unrestricted funding and strategic support to help them

to have the support of such a passionate community

dramatically increase their impact. We also commit to

of philanthropists social entrepreneurs, civic leaders,

pushing even harder in our work to shift mindsets and

and others. We thank you all for your past, present, and

approaches in philanthropy with two key priorities:

future partnership.

NEW PROFIT 2020 ANNUAL REPORT

ALEXANDRA BERNADOTTE Founder and CEO of Beyond 12, a digital coaching platform that combines virtual college coaches, a campus customized mobile app, and an AI-powered analytics engine to help historically underserved students thrive in college and beyond. Beyond 12, a New Profit grantee-partner, currently provides 90,000+ students nationally with the academic, social, and emotional support they need to not only earn their degrees but to translate those degrees into meaningful employment and choice-filled lives.

NEW PROFIT 2020 ANNUAL REPORT

5

Portfolio This has been an extraordinary year for New Profit and our grantee-partners.

Amidst the COVID-19 pandemic, a national reckoning on racial equity, and other challenges, we made a unprecedented number of new Build ($1M+ investments total over 4 years) and Catalyze ($50-100K investments total over 1-2 years) investments. Our support for new social entrepreneurs in the portfolio aligned with our five-year strategy, which prioritizes investing in leaders of color and in organizations focused on systems change. Supporting our grantee-partners through a year of trauma and disruption required all of the skills and competencies New Profit brings to bear: capacity building support across the board from organizational strategy to fundraising and communications; the expertise of our America Forward policy team; our partnership with organizations like Deloitte; our deep understanding of systems change; and our commitment to and understanding of the power of funding entrepreneurs who are more proximate to the systemic challenges we face. This support coupled with the brilliance and adaptiveness of the social entrepreneurs we support have helped position our portfolio to truly rise to meet the moment.

ONE PORTFOLIO HIGHLIGHTS: • We invested in eight Build organizations: 4.0 Schools, Beyond 12, CASEL, Equal Opportunity Schools, Pivot Learning, PushBlack, Saga Innovations, and Urban Alliance. These investments increased our Build portfolio to 24 organizations, 54% of which are led by leaders of color. We also saw four exceptional organizations leave our portfolio this year: Acelero Learning, Innovate Public Schools, Leading Educators, and UnboundEd. • In addition to providing continued support to three organizations from our inaugural Civic Lab cohort (see page 25), we invested in three additional Catalyze cohorts representing an additional 36 entrepreneurs. 72% of our 39 Catalyze organizations are led by leaders of color.

• We continued to provide support to our inaugural Civic Lab cohort of democracy entrepreneurs as they worked to inform and activate grassroots civic engagement while advocating and promoting policies for safe and secure elections. In July, we hosted a virtual roundtable with 50 democracy entrepreneurs from diverse backgrounds, to engage in learning conversations about key insights from the field and collectively imagine the key elements for a radically inclusive, healthy, and responsive democracy.

6

NEW PROFIT 2020 ANNUAL REPORT

• In-partnership with the Bill & Melinda Gates Foundation, we selected a cohort of eight innovative organizations in K-12 education and adjacent areas. Our capacity building program for this cohort included deep scenario planning and financial contingency planning, board development, an introduction to systems change, policy advocacy, and operationalizing equity, diversity, and inclusion. The cohort also contributed to developing a report: An event or an era?

Resources for social sector decision-making in the context of COVID-19 by Monitor Institute by Deloitte.

• Launched in 2020, our Postsecondary Innovation for Equity (PIE) initiative supports 20 social entrepreneurs who are connecting young adults from low-income communities with the postsecondary credentials and work experience they need to access upwardly mobile careers.

Through virtual convenings, the cohort built connections across organizations and explored a variety of topics, such as making labor market-informed programmatic pivots in light of the pandemic and centering racial equity in their strategies and operating models. The research and evaluation firm MDRC was selected as a partner that will work with the cohort through 2021.

• In partnership with award-winning artist and activist John Legend’s FREEAMERICA and Bank of America, we continued to support 8 social entrepreneurs for the second Unlocked Futures cohort which seeks to support founders directly impacted by the criminal justice system. At the Inclusive Impact Action Summit in February and through a virtual “Office Hours” convening in May, the cohort connected with New Profit colleagues to workshop and codesign solutions to critical operations challenges. As we remain virtual through the COVID-19 pandemic, we adapted our programmatic timeline and content strategy to a “Learning Agenda” codesigned with our cohort.

• In addition to receiving support from New Profit Deal Partners, the following Build Investments received pro bono strategic planning support from Deloitte Consulting LLP in 2020: Braven, Education Leaders of Color (EdLoC), PowerMyLearning, Springboard Collaborative, The Learning Accelerator. Monitor Institute by Deloitte also provided multiple workshops to our EdCatalyst Cohort on scenario planning in response to the COVID-19 pandemic. A Deloitte case team provided pro bono strategic support to New Profit’s Inclusive Impact initiative and internal Portfolio team. Since 2013, Deloitte and New Profit have collaborated to build the capacity of 43 high-impact organizations in the New Profit portfolio.

In the year ahead, New Profit is excited for our continued portfolio growth with a focus on investing in leaders of color and systems change organizations. As our organizations continue to navigate the ongoing challenges we face as a nation, the New Profit Portfolio team will continue to bring all that we can to support these leaders and their teams, and catalyzing continued collaboration and sharing of practices through our grantee network.

NEW PROFIT 2020 ANNUAL REPORT

7

Impact Stats BUILD INVESTMENTS

12.3M

Lives touched in aggregate by organizations in the New Profit Build and Catalyze portfolios in 2020 (44 organizations)

An assessment of all Build Investments active in 2020 who reported semi-annual data (not including those who joined in 2020) showed the following results:

Scale & Lives Touched

48 states (plus DC) were served by organizations in New Profit’s Build portfolio in 2020

28%

71%

median 3-year growth rate (CAGR) of

of current Build investments reported an annual

beneficiaries served by portfolio organizations

growth rate in their beneficiaries in 2019-20 despite the impacts of the pandemic

8

NEW PROFIT 2020 ANNUAL REPORT

Financial Growth & Sustainability

20% average growth rate of portfolio organization’s budget throughout the New Profit investment period

45% of Build portfolio organizations active in 2020 reported an annual expense growth rate of over 20% throughout their investment period

If you have any questions about our portfolio investing, please email portfolio@newprofit.org

NEW PROFIT 2020 ANNUAL REPORT

9

4.0 Schools

Acelero Learning

Investing coaching, community,

[exited in 2020]

curriculum, and cash in promising

Pioneering provider of HeadStart

leaders to test tomorrow’s learning

early childhood education and

models with students and families

family engagement services.

in their local communities.

Social Entrepreneur: Hassan Hassan New Profit Deal Partner: Alex Cortez

Social Entrepreneur: Henry Wilde New Profit Deal Partner: David Levy Joined Portfolio: 2012

Joined Portfolio: 2020

Build Investments Aurora Institute

Beyond 12

Transforming education systems

Addressing the college completion

and advancing breakthrough

challenge at its root by acting as a

policies and practices.

data and service bridge between K-12

Social Entrepreneur: Susan Patrick

and higher education.

New Profit Deal Partner: Helayne Jones Joined Portfolio: 2017

Social Entrepreneur: Alexandra Bernadotte New Profit Deal Partner: Dr. Angela Jackson Joined Portfolio: 2020

10

NEW PROFIT 2020 ANNUAL REPORT

Braven

CASEL

EdLoC

Using a scalable coaching and

Through efforts in research,

Membership organization dedicated

fellowship model backed by

practice, and policy, CASEL aims to

to elevating the leadership, voices,

technology to bridge the education

make social and emotional learning

and influence of people of color

to employment gap for first

(SEL) an integral part of American

in education and to leading

generation college students.

Pre K-12 education.

more inclusive efforts to improve

Social Entrepreneur: AimĂŠe Eubanks-Davis

Social Entrepreneur: Karen Niemi

education.

New Profit Deal Partner: David Levy

New Profit Deal Partner: Shruti Sehra

Joined Portfolio: 2019

Joined Portfolio: 2020

Social Entrepreneur: Layla Avila New Profit Deal Partner: Trevor Brown Joined Portfolio: 2017

Enlearn

Equal Opportunity Schools

GirlTrek

Learning platform delivering

Collaborating with school districts

National health movement

real-time diagnostics and

to increase equitable enrollment in

activating over 1 million Black

personalized instruction for

rigorous courses.

women to be change makers in

underserved students.

Social Entrepreneur: Byron Garrett

their lives and communities—

New Profit Deal Partner: Doug Borchard

Social Entrepreneur: Vanessa Garrison and T. Morgan Dixon

Joined Portfolio: 2020

New Profit Deal Partner: Tulaine Montgomery

Social Entrepreneur: Scott Adams and Zoran Popovic New Profit Deal Partner: David Levy Joined Portfolio: 2016

through walking.

Joined Portfolio: 2019

NEW PROFIT 2020 ANNUAL REPORT

11

Highlander Institute

ImBlaze (Big Picture

Innovate Public Schools

Partnering with communities to

Learning)

[exited in 2020]

imagine and create more equitable,

Tech platform enabling real-world

Building on capacity of parents and

relevant, and effective schools.

internships for high school students.

educators to innovate and create

Social Entrepreneur: Dana Borrelli-Murray and Shawn Rubin

Social Entrepreneur: Andrew Frishman and Carlos Moreno

New Profit Deal Partner: Elizabeth Riker

New Profit Deal Partner: Molly O’Donnell

Joined Portfolio: 2017

Joined Portfolio: 2017

world-class public schools.

Social Entrepreneur: Matt Hammer New Profit Deal Partner: Alex Cortez Joined Portfolio: 2015

Instruction Partners

Leading Educators

LEAP Innovations

Partnering with schools and

[exited in 2020]

Working directly with educators

systems to strengthen teaching and

Reinventing professional

and innovators to discover, pilot

learning in core content areas.

development for educators.

and scale personalized learning

Social Entrepreneur: Emily Freitag

Social Entrepreneur: Chong-Hao Fu

technologies and innovative

New Profit Deal Partner: Carrie Previtera

New Profit Deal Partner: Doug Borchard

Social Entrepreneur: Phyllis Lockett

Joined Portfolio: 2019

Joined Portfolio: 2016

New Profit Deal Partner: David Levy

practices.

Joined Portfolio: 2016

Pivot Learning

PowerMyLearning

PushBlack

Partnering with district and school

Award-winning platform brings

Using the power of narrative,

leaders in pursuit of educational

students, parents, and teachers

especially Black history and news,

justice.

together to drive learning.

to educate and activate subscribers

Social Entrepreneur: Arun Ramanathan

Social Entrepreneur: Elisabeth Stock

to build their personal power

New Profit Deal Partner: Doug Borchard

New Profit Deal Partner: Shruti Sehra

political change.

Joined Portfolio: 2020

Joined Portfolio: 2017

and create lasting economic and Social Entrepreneur: Julian Walker and Eskedar Getahun New Profit Deal Partner: Yordanos Eyoel Joined Portfolio: 2020

Saga Innovations

Springboard Collaborative

The Health Initiative

Evidence-based, personalized

Coaching teachers and families

Spurring a new conversation about

tutoring model supporting students

to help students cultivate reading

– and new investments in – health.

struggling with math to put them

habits. Closing the literacy gap by

Mobilizing an ecosystem of public

on a path toward success and high

closing the gap between home

and private institutions to increase

school graduation.

and school.

investments in the known drivers

Social Entrepreneur: Alan Safran and AJ Gutierrez

Social Entrepreneur: Alejandro Gibes de Gac

of health.

New Profit Deal Partner: Alex Cortez

New Profit Deal Partner: Kelly Cutler

Joined Portfolio: 2020

Joined Portfolio: 2019

Social Entrepreneur: Rebecca Onie and Rocco Perla New Profit Deal Partner: Kim Syman Joined Portfolio: 2019

NEW PROFIT 2020 ANNUAL REPORT

13

The Learning Accelerator

Transcend Education

UnboundEd

Connecting practitioners and

Supporting communities to create

[exited in 2020]

leaders to knowledge, tools, and

and spread extraordinary, equitable

Empowering teachers and leaders

networks to enact personalized

learning environments

to meet the challenges set by

learning.

Social Entrepreneur: Aylon Samouha and Jeff Wetzler

Social Entrepreneur: Beth Rabbitt New Profit Deal Partner: Kelly Cutler

New Profit Deal Partner: Trevor Brown Joined Portfolio: 2017

higher-standards, unfinished instruction, and institutional racism with high-quality classroom resources and professional development Social Entrepreneur: Lacey Robinson

Joined Portfolio: 2017

New Profit Deal Partner: Doug Borchard Joined Portfolio: 2016

Urban Alliance

Valor Collegiate Academies

Zearn

Providing high school students

Growing network of public

Nonprofit curriculum publisher

from underserved communities with

college-prep charter schools in

offering Zearn Math, a top-rated,

access to opportunities needed to

Tennessee empowering their

comprehensive K-5 math program.

solidify lifelong economic self-

diverse community to live inspired,

Treatment-control study found usage

sufficiency.

purposeful lives.

of Zearn Math is tied to student

Social Entrepreneur: Eshauna Smith

Social Entrepreneur: Todd Dickson

engagement and achievement gains

New Profit Deal Partner: Kevin Greer

New Profit Deal Partner: Alex Cortez

Social Entrepreneur:

Joined Portfolio: 2020

Joined Portfolio: 2017

New Profit Deal Partner: Shruti Sehra

after just one year of implementation Shalinee Sharma

Joined Portfolio: 2019

14

NEW PROFIT 2020 ANNUAL REPORT

CURT ELLIS As a parent, Curt knows that what his kids eat has a daily impact on how they feel, learn, and grow. As Co-Founder and CEO of FoodCorps, a former New Profit grantee-partner, Curt is mobilizing thousands of young Americans to advocate for a school system in which every child—regardless of race, place, or class—has the healthy food they need to thrive.

NEW PROFIT 2020 ANNUAL REPORT

15

Impact Stats C A T A LY Z E I N V E S T M E N T S

An assessment of our Catalyze Investments active in 2020 who reported semi-annual data showed the following results:

Scale & Lives Touched

49

11K

states (plus DC) were served by organizations

full-time employees and volunteers served with

in the Catalyze cohorts

our Catalyze cohort organizations in 2020

Financial Growth & Sustainability

$1.8M was the median Catalyze organization’s budget (based on expenses) in 2020

16

NEW PROFIT 2020 ANNUAL REPORT

New Profit Impact

100% of social entrepreneurs of color shared they are “very likely” or “extremely likely” to recommend New Profit's Catalyze Investments programming to other social entrepreneurs of color

100% of the EdCatalyst cohort reported they were “very satisfied” with the EdCatalyst fall convening

89% of the PIE cohort respondents reported they were “satisfied” or “very satisfied” with the PIE fall convening

NEW PROFIT 2020 ANNUAL REPORT

17

CIVIC LAB *

Alliance for Youth Organizing

New Politics Academy [exited in 2020]

Millennial Action Project

[exited in 2020]

Emily Cherniack

Steven Olikara

Pillars

POWER

The People

Khasif Shaikh

[exited in 2020]

Katie Fahey

Sarah Aduelo

(ENDING IN DECEMBER 2020)

EDCATALYST

Bishop Dwayne Royster

BEAM

COOP Careers

English Learners

nXu

Daniel Zaharopol

Kalani Leifer

Success Forum

Yutaka Tamura

Crystal Gonzales

Profound Gentlemen

Project Basta

The Calculus Project

Jason Terrell

Sheila Sarem

Adrian B. Mims Sr.

The Center for Inclusive Innovation Kimberly Smith

* PushBlack, an inaugural member of Civic Lab, has since become a grantee-partner in the New Profit Build portfolio

18

NEW PROFIT 2020 ANNUAL REPORT

POSTSECONDARY INNOVATION FOR EQUITY (PIE) INITIATIVE

Catalyze Investments

Arrupe College of Loyola University of Chicago Father Stephen Katsouros & Father Thomas Neitzk

ASU Local at Arizona State University Patrick Rossol-Allison

Building Futures Andrew L. Cortes

Code Path

Denver Public Schools Career Connect

Rush University Medical Center

Bernard McCune

Rukiya Curvey Johnson

Brooklyn STEAM Center

Generation USA

Honors Pathway

Kayon Pryce

Sean Segal

Gene Wade

IDEA U

Inner-City Computer Stars Foundation (i.c. stars)

Michael Ellison

Coalfield Development Corporation Brandon Dennison

Phillip Garza

Sandee Kastrul

NEW PROFIT 2020 ANNUAL REPORT

19

EQUITY (PIE) INITIATIVE

POSTSECONDARY INNOVATION FOR

LeadersUp

Oxford Teachers Academy

PeletonU

Jeffery Wallace

Mallory Dwinal-Palisch

Sarah Saxton-Frump

Project for Pride in Living

Project QUEST, Inc.

Propel America

Paul Williams

David Zammiello

Paymon Rouhanifard

Pursuit Transformation Company

Jewish Vocational & Career Counseling Service ( JVS) Lisa Countryman-Quiroz

(ENDING IN DECEMBER 2020)

UNLOCKED FUTURES

Jukay Hsu

20

Austin Justice Coalition Chas Moore

CURY J

First 72+

George Galvis

Kelly Orians

The Forestry and Fire Recruitment Program Brandon Smith

Freedom Project

Operation Restoration

Sacred Generations

Unloop

David Heppard

Syrita Steib-Martin

Perscilla Frizzell

Gina Castillo

NEW PROFIT 2020 ANNUAL REPORT

SARAH AUDELO Executive Director of the Alliance for Youth Organizing, a nationwide network of organizations building the political power of young people, and one of the premier youth vote vehicles in the United States. With 20 network organizations across nearly 20 states, the Alliance, a former New Profit grantee-partner, supports and scales the work of local NEW P Rall O F Ipeople.

T 2020 ANNUAL organizations, building a movement of young people, by young people, and for

REPORT

21

Systems Change Initiatives Since New Profit's founding, we have invested in both individual organizations and initiatives that we believe can unlock transformative change in inequitable systems. Our current systems change-oriented work includes:

I N C L U S I V E I M PAC T AC T I O N S U M M I T A N D P R O X I M AT E C A P I TA L

In February 2020, just before the COVID-19 pandemic upended all of our lives, New Profit held the Inclusive Impact Action Summit—a gathering of social entrepreneurs, philanthropists, and other leaders from across sectors to discuss how to increase equity in the social sector, so that the most promising ideas to create social and economic mobility can flourish. Coming out of the summit, New Profit announced its Inclusive Impact strategy: • The Inclusive Impact Strategy advances racial and economic justice across our nation, centering on areas of funding, policy, and practice. This comprehensive, systems-change approach centers proximity as expertise and guides our work across the social impact sector. Through a multi-racial, multi-ethnic network of philanthropists, social entrepreneurs, and other social impact stakeholders, we seek to address the entrenched funding disparities in philanthropy by driving unprecedented capital and support to some of our nation’s most promising innovators.

Inclusive Impact recognizes that while Black, Indigenous, and Latino/a/x/Hispanic leaders often uniquely understand the multi-dimensional root causes of social issues and are proximate to the communities that the social sector seeks to serve, they receive only a fraction of philanthropic resources aimed towards solving them.

• The core vehicle for our Inclusive Impact strategy is Proximate Capital, a $100M fund to dramatically expand the flow of capital and capacity-building supports to Black, Indigenous, and Latino/a/x/Hispanic social entrepreneurs and other leaders.

• Currently, our Build portfolio includes 24 organizations, 54% of which are led by leaders of color. Our Catalyze portfolio includes 39 organizations, 72% of which are led by leaders of color.

22

NEW PROFIT 2020 ANNUAL REPORT

S Y S T E M I C S O L U T I O N S I N I T I AT I V E

The converging crises of 2020 have starkly illustrated the inequities produced by our social systems. To address these inequities, social change leaders must be equipped with the support and tools needed to transform systems and remove barriers that limit access to equity and opportunity.

New Profit's Systemic Solutions Initiative (1) invests in social entrepreneurs catalyzing systemslevel impact, (2) develops systems change insights and tools, and (3) fosters a growing community of systems change practitioners, funders, and researchers: • The Initiative continued to provide strategic guidance to its inaugural investments, GirlTrek and The Health Initiative. During this transformative period, both organizations achieved major milestones in their efforts to catalyze systems-level change by shifting field narratives, orchestrating connections among field actors, and lifting innovative practices. Their progress has helped to illuminate critical insights about the cadence of systems change work and the types of organizational capabilities and governance models that are required to support such work. • The Initiative spearheaded two R&D projects: the Rural, Small Town, & Indigenous Leader Project (launched in Summer 2020), which supports proximate leaders in rural, small-town, and Indigenous communities in an effort to shift the systemic conditions that limit their access to philanthropic resources, and the DEI Learning Lab (launching in 2021) which will engage learners, postsecondary education nonprofits, and funders to amplify strategies, invest in efforts, and identify measurement tools that center and advance equity. • In February, the Initiative published Deconstructing the Bird Cage, which highlights the emerging impact approaches that social entrepreneurs are leveraging to catalyze systemic change.

In March, the Initiative also held a two-day convening to explore the crucial role of shifting existing narratives to advance systems change. More than forty social entrepreneurs, funders, and field practitioners participated in the convening, which was facilitated by leading narrative change experts.

NEW PROFIT 2020 ANNUAL REPORT

23

YO R DA N O S E YO E L New Profit Partner who leads the vision, strategy development, and management of New Profit’s Catalyze Investments portfolio. In 2019, she launched Civic Lab, as part of New Profit’s Catalyze Investment portfolio, to invest in organizations led by visionary democracy entrepreneurs that are working to create civic trust and an inclusive democracy.

NEW PROFIT 2020 ANNUAL REPORT

24

CIVIC LAB

To build civic trust and an inclusive democracy, we launched our Civic Lab initiative in 2019, which has become a leading nonpartisan capacity building platform for democracy organizations in our country. The glue for an inclusive, healthy, and responsive democracy — like a healthy relationship — is trust. According to the Pew Research Center, 35% of Americans are “low-trusters" who believe that people cannot be trusted and only look at their own self-interest. Nonprofits can serve as trusted messengers who can mitigate misinformation and encourage civic engagement—especially with historically disenfranchised groups. During 2020, our Civic Lab initiative has served as a conduit for nonpartisan resources and as a trusted advisor to our portfolio organizations and the America Forward Coalition that collectively reach over 40 million people across the country. We have done this by: • Providing guidance on what 501(c)3 organizations can/cannot do; vetting, compiling, and sharing important resources; curating discussions with external and internal experts; and providing 1:1 coaching to our current portfolio organizations • Developing and publishing a widely-circulated framework and toolkit for the 3 categories of actions nonprofit organizations can take to support our democracy and their constituents: Getting out the vote; supporting safe and secure elections; and preparing for potential post-election disruption and developing an action plan.

• In addition to supporting our organizations through this complex election season, our Civic Lab initiative is also poised to invest in and provide capacity building support to 24 nonpartisan democracy organizations that are building civic trust and an inclusive democracy between 2021 and 2024.

FUTURE OF WORK XPRIZE

In June 2020, New Profit launched the $6 million Future of Work Grand Challenge, powered by XPRIZE, MIT Solve, JFF, and Jobcase. The unprecedented cross-sector, equity-focused effort aims to rapidly reskill 25,000 displaced workers into living-wage, higher-quality jobs in the next 24 months and equip influential workforce boards with vetted tools to support the wave of displaced workers. These efforts will ultimately help prepare 12 million Americans from underinvested communities for workforce success by 2025. The Grand Challenge will spur innovation by seeking ideas from diverse entrepreneurs and advancing solutions that serve the most impacted workers. The initiative is supported by leading partners Walmart.org and Strada Education Network, along with Accenture, Annie E. Casey, Fossil Foundation, Imaginable Futures, JP Morgan Chase, Lumina Ventures, Siegel Family Endowment, The Joyce Foundation, and The Morgridge Family Foundation. Key highlights include: • As of late-October, 2020, 290 pre-registered teams were involved in the Rapid Reskilling XPRIZE; the MIT Solve Reimagining Pathways to Employment in the U.S. Challenge has garnered 900 draft applications thus far.

• To ensure that the voices of people who will be impacted by solutions are part of the design and implementation, New Profit, Accenture, and Goodwill Industries International launched the XPERTs Worker Advisory Board (WAB).

The WAB, consisting of 31 workers across 11 states, increases the engagement of frontline workers from racially, ethnically, experientially, and geographically diverse backgrounds in the prize as co-designers, advisors, and judges through the life of the initiative. Additionally, the Grand Challenge is intentional about seeking ideas from proximate entrepreneurs; it aims to support at least 40% Black, Indigenous, and Latino/a/x innovators.

• New Profit, in partnership with JFF, has invested in six workforce development boards across the U.S. to pilot the most promising solutions that will surface in the two competitions: Capital Workforce Partners, Hampton Roads Workforce Council, MassHire Central Region Workforce Board, San Diego Workforce Partnership, Michigan Works!

(West; Southwest; and Berrien, Cass, VanBuren regions), and Workforce Solutions Greater Dallas. Workforce boards will partner with social platform Jobcase to connect workers to solutions.

NEW PROFIT 2020 ANNUAL REPORT

25

E D U C AT I O N

New Profit's work to make the education system more equitable is centered in our portfolio and driven by our belief that all students should have access to high-quality, holistic, and individualized learning environments that help them reach their full potential. We fund and support organizations that achieve this goal, as well as organizations that inform and organize parents, young people, educators, and communities so that they can exercise their innate power in co-creating these high-quality learning environments. We prioritize efforts that address the needs of student populations that have been systematically underserved by our public education system. This year has presented a unique set of circumstances that have made it more important than ever to both redesign our education system in ways that address the holistic needs of our children, educators, and families, and to listen to and solicit guidance from those whose needs are not being met.

• In addition to seven new Build Investments, we also provided six parent power organizations with short-term grants to fund direct COVID relief efforts for their constituents (including WiFi access, technology, food, etc.) as well as organizational efforts such as case management and connections to educational resources.

• In July, we launched an open call for applications for organizations that advance the wellbeing of young people, educators, and families. We received submissions from over 170 organizations doing work in this field, and we piloted the inclusion of parent leaders in our investment selection process for this cycle, recognizing the critical importance of including their voice in our funding decisions. We expect to announce Build investments in two of these organizations over the coming months.

• We continued to provide cohort-based support to the eight organizations in our Personalized Learning Initiative.

This year, we focused on strategic communications and narrative development, as well as equity, diversity, and inclusion work.

E A R LY C H I L D H O O D S U P P O R T O R G A N I Z A T I O N S

The Early Childhood Support Organization (ECSO) Initiative is an innovative partnership with the Massachusetts Department of Early Education and Care (EEC) designed for system-level impact. Three selected ECSOs will partner with local center-based early education and care programs to implement proven approaches to improving instruction and practice in programs serving children ages birth through five years old. State funding supports direct services, while New Profit support provides unrestricted funds and Deal support to build organizational capacity to scale their models. In a field in which scale is notoriously difficult, this partnership has a plan for scaling the technical assistance models over four years across the state. If proven successful, it will serve as a national model.

• In March, 2020, New Profit and EEC selected Children’s Literacy Initiative, The Lastinger Center at University of Florida and The Institute for Early Education Leadership and Innovation (UMass-Boston) as the ECSOs. • Our partnership supports ongoing opportunities for the ECSOs to come together in a community of practice to learn from one another and ultimately accelerate their impact.

• After early care and education programs were closed due to the pandemic, the ECSOs have started their recruitment of programs in the final months of 2020.

26

NEW PROFIT 2020 ANNUAL REPORT

VA N E S S A G A R R I S O N Co-founder and COO of GirlTrek, the largest public health nonprofit for African-American women and girls in the United States. GirlTrek, a New Profit grantee-partner, aims to create the next American civil rights movement centered on Black women walking for healthier bodies, safer streets, and a bold new culture of health liberation. Today over 1 million women (Trekkers) are participating in the movement.

NEW PROFIT 2020 ANNUAL REPORT

27

America Forward America Forward is the nonpartisan policy initiative of New Profit. America Forward unites social entrepreneurs with policymakers to transform local impact into national, systemic change. Our Coalition of over 100 organizations advocates for public policies that advance equity, foster innovation, and reward results, and to date we have leveraged $1.7 billion for social innovation. Our members work in over 15,000 communities across America - touching over 9 million lives every year; this year, they are providing critical support to students, workers, families, educators, and nonprofit leaders in the midst of the unprecedented disruption caused by the COVID-19 pandemic. Looking ahead at 2021, the collective advocacy and policy work of the Coalition has never been more important - in shaping the agenda for the incoming administration and Congress, helping our communities recover, and building systems that are more equitable, innovative, and resilient.

E N G A G I N G D E E P LY I N T H E 2 0 2 0 P R E S I D E N T I A L E L E C T I O N C YC L E

Earlier this year, America Forward released a 2020 policy playbook for the current presidential cycle, including thirty-five unique and detailed policy recommendations that reflect in-depth input from our Coalition members. Using that playbook as a framework, America Forward and our Coalition members have adapted to the challenges posed by COVID-19 and found innovative ways to engage with leading Presidential campaigns and policymakers to drive forward critical priorities, including hosting a number of virtual roundtables and meetings with campaign policy staff throughout the year and hosting virtual fireside chats with members of Congress and Coalition experts. We also led the creation of Election 2020: America Forward Storytelling Project to highlight the America Forward Coalition's collective policy priorities leading up to and following the 2020 election, and launched a communications campaign lifting up our policy priorities in the context of the election cycle.

28

NEW PROFIT 2020 ANNUAL REPORT

L A U N C H I N G T H E “A D VA N C I N G W H O L E L E A R N E R E D U C AT I O N ” I N I T I AT I V E

Taking a holistic approach to providing every student with the breadth of skills they need to thrive is critically important, especially in light of the COVID-19 public health and economic crisis. Over the summer, with generous support from the LEGO Foundation, America Forward launched the “Advancing Whole Learner Education” initiative, to advance crucial policies that will support the development and adoption of high-quality, evidence-based whole-learner approaches to education. America Forward published a Whole Learned Education Policy Roadmap, launched a Whole Learner website, hosted a virtual Whole Learner Fireside Chat series with members of Congress, field experts, and education leaders from across the country, and amplified key whole-learner content via a a Whole Learner communications and public engagement campaign in battleground states.

PROVIDING ROBUST SUPPORT FOR A M E R I C A F O R WA R D C O A L I T I O N M E M B E R S

Across the country, the organizations that make up the America Forward Coalition - along with the communities they serve - have been working tirelessly to adapt and evolve in response to the COVID-19 pandemic. When the pandemic hit, America Forward got to work supporting our nonprofit partners securing loans, providing guidance on federal programs and policy, and helping our Coalition organizations weather this crisis through advocacy and communications training.

NEW PROFIT 2020 ANNUAL REPORT

29

Leadership

Doug Borchard

Trevor Brown

Sara Conahan

Managing Partner and

Managing Partner,

Managing Partner,

Chief Operating Officer

Portfolio Investing

Investor Relations

Eliza Greenberg

Vanessa Kirsch

Shenkiat Lim

Managing Partner,

Founder and CEO

Managing Partner and

Executive Team

30

Chief People Officer

Ian Magee

Tulaine Montgomery

Managing Partner and

Managing Partner,

Chief Financial Officer

Inclusive Impact

NEW PROFIT 2020 ANNUAL REPORT

ELIZA GREENBERG A member of New Profit’s Operating Council who oversees New Profit’s more emergent functions and strategies including Development, Communications, America Forward, Early Childhood Support Organizations (ECSO) and Future of Work. Eliza joined New Profit in 2011, and has since served as Deal Partner to multiple New Profit grantee-partners, including NEW FoodCorps, First Place for Youth, Health Leads, and ROCA.

PROFIT 2020 ANNUAL REPORT

31

32

Steve Barnes

Josh Bekenstein

Managing Director Bain Capital

Managing Director Bain Capital

Sam Cobbs

Alisa Doctoroff

David Gergen

CEO Tipping Point Community

Chair The Jim Joseph Foundation

Founding Director, Center for Public Leadership, Professor of Public Service, Harvard Kennedy School

Stacy Janiak

Stephen M. Jennings

Vanessa Kirsch

Managing Partner – Chief Growth Officer Deloitte Consulting LLP

Principal Monitor Deloitte Consulting LLP

Founder and CEO New Profit

Wendy Kopp

Matthew Levin

Henry McCance

CEO Teach For All

Founder and Principal Investor Twin Shores Capital

Chairman Emeritus Greylock Partners

NEW PROFIT 2020 ANNUAL REPORT

NEW PROFIT 2020 ANNUAL REPORT

32

Board of Directors

Duncan McFarland

Valerie Mosley

Kristin Mugford

The Bromley Charitable Trust

CEO Valmo Ventures

Senior Lecturer Harvard Business School

Mark E. Nunnelly

Jim Pallotta

John Rice

Chairman Toolbox Foundation, Dupre-Nunnelly Family Office

Chairman & Managing Director Raptor Group

Founder & CEO MLT

Brian Spector

Venkat Srinivasan

Jeffrey C. Walker

Chairperson Reflow Medical

Managing Director Innospark Ventures

Chairman New Profit

NEEW W PPRRO OFFIITT 22002200 A AN NN NUUA ALL RREEPPO ORRTT N

33 33

DWIGHT POLER A lead investor in New Profit’s Inclusive Impact strategy and Proximate Capital Fund. From 1994 to 2017, he was part of the leadership of Bain Capital, where he founded and managed the European Private Equity Business from 2000-2017 and remains a senior advisor. Dwight now manages AccelR8, a fund investing in climate change mitigation. Dwight is a member of the Boston Foundation Board N E WCollege P R O F I T Trustee.

2020 ANNUAL of Directors and chairs its Finance Committee, as well as an Amherst

REPORT

34

Donor Roll

INVESTORS

Accenture

ECMC Foundation

Mark and Carolyn Ain

Paul and Sandy Edgerley

American Express Anonymous (9)

Hinda and Joel Miller

Michael and Barbara Eisenson

Valerie Mosley

Charlesbank Capital Partners Stuart and Randi Epstein

Arrow Impact

Robert and Courtney Farkas

AT&T

Domenic and Molly Ferrante

Bain Capital Children’s Charity, Ltd.

Gantcher Family Foundation

Bank of America Charitable

Bill & Melinda Gates Foundation

Deborah and Steve Barnes

Josh and Sarah Greenhill

Bain Capital

Blair Hendrix

Josh and Anita Bekenstein

Imaginable Futures

Bain Capital

International Private Equity Limited

Bain Capital

Stephen and Laurie Arnold

Foundation

Douglas and Audrey Miller

Stephen M. Jennings and Monica

Kristin and Stephen Mugford FW Murphy Family Foundation Matt and Einat Ogden Christine Olsen and Rob Small James and Kim Pallotta Saul Pannell and Sally Currier Dwight and Kirsten Poler Jane Rappeport M K Reichert Sternlicht Foundation

Amy Brakeman

O'Neil

Arthur and Lindsay Reimers

Lynda and Jeffrey Bussgang

JPMorgan Chase Foundation

Arthur and Toni Rembe Rock

Kevin and Julie Callaghan

Ewing Marion Kauffman Foundation

Ann and Richard Sarnoff Family

Berkshire Partners Carnegie Corporation of New York Chan Zuckerberg Initiative DAF Silicon Valley Community Foundation Howard P. Colhoun Family Foundation Comcast Commonwealth Children's Fund Estate of Kathryn W. Davis Deloitte Alisa and Dan Doctoroff Doran Family Charitable Trust

Florence Koplow Jonathan and Jeannie Lavine

Foundation Ronald Schrager and Wendy Hart

Bain Capital

Peg Senturia

Matt Levin

Jeffrey Shames

Twin Shores Capital Ellie and Phil Loughlin Leon Lowenstein Foundation Lumina Foundation A.L. Mailman Family Foundation Anne and Paul Marcus Henry McCance

Siegel Family Endowment Skoll Foundation Social Ventures Alan and Susan Solomont Brian and Stephanie Spector Venkat and Pratima Srinivasan Strada Education Network

NEW PROFIT 2020 ANNUAL REPORT

35

SUPPORTERS Blake and Alexandra Stuart Peter Swift and Diana McCargo

Anonymous (10)

Aidan Hartigan

The Boston Foundation

Aurora Institute

Stacy Janiak

The Bromley Charitable Trust

Warren Bailey-Turner

Wendy Kopp

The Annie E. Casey Foundation, Inc.

Bain Capital, LP

Billy Lagor

The Fidelity Charitable Trustees'

Lisa Bernstein

Cathleen London

Initiative

Social Ventures

The William and Flora Hewlett

Patrick Brennan

Foundation Bill and Nancy Brownell The Hirsch Family Foundation Edmund & Betsy Cabot

Michael Moody Bill Nigreen

The LEGO Foundation

Charitable Foundation

Roz Nowicki

The McCance Foundation

Patricia Caddell

Tom O'Rourke

The Morgridge Family Foundation

Meredith and Joe Callanan

Own The Room Foundation

The Omidyar Group The Reeder Foundation The Doris & Stanley Tananbaum Foundation

Callanan Family Fund Camelback Ventures Dan and Robin Catlin

Jo Beth & William Abecassis Tanner & Abigail Tananbaum The Peter and Elizabeth C. Tower Foundation Tower Family Fund Travelers Foundation Lauri Union and Stanley Rosenzweig Wagner Foundation Jeffrey C. and Suzanne C. Walker Walmart Walmart Foundation Walton Family Foundation Jean and Rick Witmer Jan and Steve Zide Zide Family Foundation

NEW PROFIT 2020 ANNUAL REPORT

Ben Painter Peter Sarnoff Charles and Lynn Schusterman

Adria Chamberlain

Family Foundation

Croan Family Foundation

Alan Silberstein

Keri Dogan and Mark Hamel

Diana M. Smith

Fetzer Institute

Cathy and Sean Stannard-Stockton

Fisher Markin Fund

Peter and Laurie Thomsen

Zoe & Jon Bernstein

36

Carl and Pamela Miller

The Chicago Community Foundation Kathleen T. Gabriele Grantmakers for Thriving Youth

Howard and Candice Wolk Mark and Susan Zankel

ESHAUNA SMITH CEO of Urban Alliance, a New Profit grantee-partner that provides high school students from underserved communities with access to opportunities needed to solidify lifelong economic self-sufficiency. The organization's innovative model is driving strong results: 100% of Urban Alliance students graduated from high school, and over 80% of alumni enrolled in a two-or four-year college.

NEW PROFIT 2020 ANNUAL REPORT

37

Financials 51% Corporations and Foundations

4% In-Kind Services

1% Program Fees & Other Misc.

44% Individuals and Family Foundations

Revenue Breakdown

38

NEW PROFIT 2020 ANNUAL REPORT

Individuals and Family Foundations

$21.4M

Corporations and Foundations

$24.6M

In-Kind Services $2.1M Program Fees and Other Misc.

$0.5M

TOTAL REVENUE

$48.5M

Almost all of our revenue consists of gift & grant commitments, to be collected over multiple years.

2019 Net Assets

CHANGE IN NET ASSETS

$23.3M

Change in purpose-restricted

$15.0M

Change in time-restricted

$6.7M

Change in unrestricted

$1.6M

TOTAL NET ASSETS

$73.2M

Purpose-restricted $46.8M Time-restricted $21.7M

Expense Breakdown

Unrestricted $4.8M

Impact Programming: $18.4M

Portfolio Investing Portfolio Grants Grantee Support Deloitte Pro Bono Select Donor Supported Initiatives

Ecosystem Building

New Profit Infrastructure*

America Forward

Administration Development

Gathering of Leaders/ Convenings

Communications

Field Building

Legal/Strategy Pro Bono

67%

8%

25%

$16.4M

$2.0M

$6.2M

TOTAL EXPENSES = $24.7M

Numbers may not add due to rounding.

NEW PROFIT 2020 ANNUAL REPORT

39

IN MEMORIAM

In 2020, we experienced the tragic loss of two extraordinary social entrepreneurs who were inspirational leaders in our community and warriors for equity in America. Our hearts continue to go out to their families, friends, and colleagues.

We seek to honor their legacies through our work.

Layla Avila CEO/Executive Director Education Leaders of Color New Profit Build Grantee, 2017-2020

Leila Janah Founder and CEO Samasource New Profit Women’s Accelerator, 2016

40

NEW PROFIT 2020 ANNUAL REPORT

NEW PROFIT 2020 ANNUAL REPORT

41

225 Franklin Street, Suite 350 Boston, MA 02110 info@newprofit.org www.newprofit.org