Innovation Works - Fiscal Year 2021 Annual Report by iwbmore

FISCAL YEAR 2021 ANNUAL REPORT

Innovation Works

creatively and collaboratively connects neighborhoods, entrepreneurs, social innovation assets, and investors to build sustainable neighborhood economies in Baltimore.

Our Mission

is to reduce Baltimore’s neighborhood and racial wealth divide by supporting and accompanying leaders of social enterprises working to create sustainable neighborhood economies.

Our Values

HEROIC VISION // Each person, no matter their circumstance, has untapped leadership potential EXCELLENCE // Baltimore’s entrepreneurs can create grassroots, national models of quality, livable, urban community solutions DIGNITY // Work is fundamental to the dignity of the person INCLUSION // We meet community members where they are FOR THE GREATER GOOD // We encourage social entrepreneurs to see opportunity as more than about income

Welcome :H DUH JUDWHIXO WR EH VKDULQJ ZLWK \RX WKH ࡼUVW DQQXDO UHSRUW IRU ,QQRYDWLRQ :RUNV ,: 7KH ZRUN ZH GR DW ,: ZRXOG EH LPSRVVLEOH ZLWKRXW WKH EURDG FRPPXQLW\ RI SHRSOH OLNH \RX VXUURXQGLQJ DQG VXSSRUWLQJ XV From funders to social entrepreneurs to mentors and staff,

As you review this annual report, we ask that you reflect on

we are in the business of serving, empowering, and con-

the state of our country and our city that has brought us to

necting with people. Over the past 18 months, we have

this moment. Racial injustice and wealth disparity remain

been challenged to reimagine what human connection

prevalent issues that require intentional action to undo the

looks like in the midst of a pandemic forcing us to remain

centuries of harm that continue to impact Baltimore.

distanced. Though our lives have changed dramatically, what hasn’t changed is the importance of meeting indi-

That said, we hope this report inspires you to celebrate

viduals where they are, acknowledging lived experiences,

the progress made over the past three years and see the

and offering tailored, intentional support. At IW, this is what

hope and opportunity overflowing in Baltimore thanks

we’ve always believed, and what we strive for every day in

to the dedication of social entrepreneurs and innovators

our work.

across the city. As we transition into the next year, we want to reflect on how we got here and specifically thank our

Since 2017, IW has gone from a big idea with great potential

founding institutional partners, including the USA East

to a fully operational organization making steady progress

Jesuits and Bunting Family Foundation, for believing in IW

toward our goals. The growth of IW has come with its fair

from the start and continuing to support our mission.

share of growing pains, but our approach has allowed us to adapt quickly through trial and error. While our first three

Lastly, we invite you to engage with us—find yourself

years have been full of change, we are working toward—and

within these stories, identify areas in which your expertise

beginning to reach—a place of long-term sustainability.

can work alongside IW to multiply our collective impact,

Ultimately, our stakeholders need a reliable organization

and challenge us to better reflect our values in our service

with a strong foundation that will not waver in service.

to Baltimore communities. We hope this report not only serves as a snapshot of Innovation Works at this moment

We are excited to announce a transition of leadership at IW.

in time, but also as a broader representation of the inter-

After three years of dedicated leadership to our Board,

connectedness of Baltimore and the potential that already

IW Founder Frank Knott is passing the baton and will con-

exists within this city.

tinue his service to IW in the new role of Fundraising Chair. Dan Rizzo and Tina Rodriguez, both existing board mem-

With gratitude,

bers, will serve as Board Chair and Vice Chair respectively beginning in FY22. Dan and Tina bring many years of expe-

Jay Nwachu

Frank Knott

rience in successful entrepreneurial careers to their roles,

President & CEO

Founder & Board Chair

making room for long-term planning for the future of IW. 1

Innovation Works’ History In 2016, leaders of Baltimore’s Jesuit institutions—including Innovation Works’ founder, Frank Knott—formed an exploratory team to create a social enterprise solution that would provide resources and create economic sustainability for underserved and minority communities in Baltimore. They concluded such a solution would fulfill three needs:

to provide a path to economic

to create opportunities for

to offer Jesuit institutions a

sustainability for minorities presently

members of historically

means to live out their mission

underserved by the existing

disinvested neighborhoods

by responding to a pressing faith-

innovation ecosystem in Baltimore.

to build local economies.

justice issue in the city.

Thus, Innovation Works is officially incorporated in 2017 and its Strategic Model is developed. Other notable events in IW’s history are included below, with events in FY21 highlighted in yellow.

BALTIMORE’S

2017:

residents in underinvested communities to

the CREATION of a program supporting

OLD TOWN MALL

Feb 2019: IW launches &

June 2019: IW launches

2018: IW partners with

builds operations with

1st Global Social Benefit

Miller Center to bring

four initial employees,

Institute (GSBI®) Boost

its 20-plus years of

followed by the launch of

Program, introducing

global practice in social

four Neighborhood Ignite

28 social enterprises (SEs)

entrepreneurship to

Hubs and 20 Executive

to mission-driven business

address the needs of

Mentors in the Mentor

lessons that are key for all

Baltimore.

Network.

SE leaders to understand.

Oct 2019: IW launches

May 2021: IW hosts

1st GSBI® Accelerator,

2nd Virtual GSBI® Boost

a 6-month program

Program, focused on

June 2020: Ignite

offering an extended,

existing SEs within

Capital makes first

personalized experience

the IW pipeline, and

investments & hosts

to 10 SEs who are paired

representing a transition

Investor Showcase,

with individual mentors

of responsibility from

giving eight of IW’s

to walk through

Miller Center to IW.

most advanced SEs the

essential business

opportunity to pitch for

lessons and apply them

investment.

to their enterprise.

Jan 2021: IW begins 2nd GSBI® Accelerator & 1st GSBI Transform

Feb 2020: IW launches Ignite Capital, its subsidiary impact fund, to address Baltimore’s critical gap in access to capital necessary to lead and grow sustainable enterprises.

Lexington Accelerator, a program adapted to the food industry to train and prepare vendors chosen for the new Lexington Market, set to open Spring 2022.

CREATE GROW SCALE

SOCIAL ENTERPRISES

to achieve

FINANCIAL SUSTAINABILITY

Nov 2019: IW pilots

April 2020: IW

Baltimore Neighborhood

participates in Makers

Indicators Alliance (BNIA)

Unite! COVID relief

Community Guidepost,

initiative to help

a free public resource

Baltimore’s businesses

designed to provide

meet the high demand

Sept 2020: IW hosts fully

focused on the Urban

neighborhood-specific

of personal protective

Virtual GSBI® Boost

Wood, Natural Dye, and

data to the Baltimore

equipment (PPE) in our

Program consisting of 27

Manufacturing industries

community.

region.

SEs and 14 mentors.

in Baltimore.

Feb 2021: IW announces 3 Strategic Initiatives

The Innovation Works Model

The Innovation Works model revolves around three strategic focus areas designed to accelerate its bold goals while building from Baltimore’s core strengths.

Neighborhoods

Strategic Initiatives

Social Enterprises

Through trusted community

A key part of our growth strategy,

Innovation Works supports social

anchors, Innovation Works delivers

IW pursues initiatives that accelerate

entrepreneurs through the full

social enterprise programming that

innovation and growth across various

entrepreneurship journey and its

ignites and develops local interest

industries with untapped resources

five-stage social enterprise develop-

and capacity to transform neighbor-

and opportunity for economic devel-

ment pipeline, allowing leaders to

hood economies.

opment in Baltimore City.

enter the pipeline at any stage.

Neighborhoods Delivering social enterprise programming that ignites and develops local interest and capacity to transform neighborhood economies.

Members of the Kingdom Life Church in the Hilton Street Corridor gather for a workshop led by IW.

WHILE IW’S OVERALL VISION

understanding the context and sys-

their neighborhoods. It is important

works to build sustainable neigh-

tems that have led to and sustained

to note that entrepreneurs present in

borhood economies, we recognize

Baltimore’s neighborhood, racial,

many different ways—corner stores,

this is impossible without meaning-

and wealth divides. We believe the

in-home businesses, etc. If we focus

ful, engaging relationships within

community members should play a

on the neighborhood leaders, we

these neighborhoods to increase

key role in creating entrepreneurial

can find the entrepreneurs making a

community capacity and trust. IW’s

solutions and decision making pro-

difference in their community.

Neighborhood Strategy is rooted in

cesses to create positive change in

BNIA COMMUNITY GUIDEPOST IW has partnered with the Baltimore Neighborhood Indicator’s Alliance (BNIA) to create a user-friendly neighborhood analysis tool called the Community Guidepost. The Guidepost allows users to evaluate neighborhoods across areas of interest such as growth and occupancy, workforce development, real estate markets, crime and safety, and equity in order to show how a given community fairs over time and how it compares to others. This enables Baltimoreans across the city to have the knowledge and, therefore, power to create change in their communities. View the Community Guidepost at www.bniajfi.org/community-guidepost

Innovation Works focuses in historically disinvested neighborhoods of Baltimore with rich social entrepreneurship ecosystems. This map showcases neighborhood-based entrepreneurs and organizations in the West/Southwest corridors of Baltimore.

SANDTOWN-WINCHESTER Social Enterprise: Black Arts District, Fresh at the Avenue Community Partner: No Boundaries Coalition

HILTON STREET CORRIDOR Community Partner: Kingdom Life Church

HARLEM PARK Social Enterprises: Breathe4Sure, Flight Blight, Parity Community Partner: No Boundaries Coalition

PENROSE/FAYETTE Social Enterprise: Epic Art Universe Community Partner: Fayette Street Outreach Organization

“The … networks and entrepreneurs that exist in … Baltimore are being cultivated into a social enterprise engine that, with the correct resources, can create change. IW is helping carve out that presence.”

“What is truly unique about IW is that it looks at its work from a systems perspective and focuses on undoing harm done to black and brown communities by asking, ‘How do we reposition the power dynamics associated with wealth so that we look at entrepreneurs as whole people with agency and wisdom?’ ” — BREE JONES FOUNDER & CEO, PARITY

— DION BOWEN CEO, EPIC ART UNIVERSE

Strategic Initiatives Pursuing initiatives that accelerate innovation and growth across Baltimore.

Staff at Arbor Place in Rockville offer thanks for receiving face masks made at Open Works as part of Makers Unite!, a collaborative project launched in response to the COVID-19 pandemic and the critical shortage of PPE for front line health workers. Through this initiative, IW facilitated production shifts in Baltimore businesses to meet the high demand of PPE in our region.

A KEY PART OF OUR GROWTH

Initiative supported local makers

Urban Wood

STRATEGY, IW’s Strategic Initiatives

in Baltimore to produce personal

Also in March 2020, Innovation

are designed to address the critical

protective equipment (PPE) in the

Works received a grant from the

challenges facing Baltimore’s eco-

early days of the pandemic. Since

Transparent Fish Fund to utilize and

nomic sectors with opportunities for

then, thanks to our partnership

expand upon the recent research

growth. IW pursues initiatives that

with CareFirst, we have turned the

efforts of the US Forest Service and

cover topic areas such as the digital

original crisis response into The

local urban wood industry lead-

divide, food access, education and

Link, a more future-focused man-

ers who identified Baltimore as

literacy, public health, and afford-

ufacturing effort that increases the

a unique resource center for the

able housing. Through collaborative

purchasing of products manufac-

reclaimed urban wood market. IW’s

efforts, these initiatives accelerate

tured in Baltimore across a variety of

Urban Wood Strategic Initiative

innovation and growth with the

industries. This will ultimately build

uses Baltimore’s indigenous asset of

common goal of creating jobs in

a bridge between local manufactur-

urban wood to develop local value

Baltimore for members of the city’s

ers—specifically manufacturers of

chains with the intention of estab-

disinvested communities.

color—and prospective vendors.

lishing Baltimore as the national market leader. By applying IW’s

Manufacturing

Key Partners: Made@Dent, Open

model to the development of the

Initially launched in response to

Works, Made in Baltimore, SewLab

urban wood markets, social enter-

the COVID-19 pandemic in March

USA

prises in the industry will be deeply

2020, the Manufacturing Strategic 8

rooted in Baltimore’s niche market

SPOTLIGHT ON STRATEGIC INITIATIVES with competitive advantages, therefore creating sustainable businesses and furthering IW’s mission to reduce the racial wealth divide in Baltimore’s economically distressed neighborhoods. Key Partners: Camp Small, US Forest Service

Natural Dye Similarly, Innovation Works began a journey in early 2020 to expand

Participants in the Makers Unite! PPE initiative work on creating face masks and shields for local healthcare workers.

upon the recent research efforts of the Maryland Department of Commerce and the Maryland State Arts Council, along with Maryland Institute College of Art (MICA), which identified Baltimore as a unique indigenous resource center for the natural dye market. From this research came the Nature’s Colors Initiative, a year-long collaborative effort with IW’s stakeholders to identify ways in which we can pursue our mission through the development of multiple social enterprise businesses across the “raw material to consumer” supply chain in the natural dye market. Key Partners: MICA, Blue Light Junction, Agriculture and Community Development Services (ACDS) Indigo plants are grown at various partner farms to be harvested for use as natural dyes as part of the Nature’s Colors Initiative. Top: Farmer Jordan Bethea at Bliss Meadows. Bottom left: Indigo harvested by Blue Light Junction. Bottom right: Plantation Park Heights Urban Farm.

Case Study: Nature’s Colors Initiative IN SEPTEMBER 2017, Maryland’s

In March of 2020, Innovation Works

First Lady, Yumi Hogan, visited the

received a grant to utilize and

Natural Dyeing Culture Center in

expand upon the research efforts of

her hometown of Naju, South Jeolla

the Baltimore Natural Dye Initiative,

Province, South Korea, to examine

thus creating the IW Nature’s Colors

the natural dye market in that area.

Initiative. IW’s goal was to maximize

Following her trip, a number of local

the natural dye industry resources in

natural dye partners, including the

Baltimore with a focus on economic

Maryland Institute College of Art

development and job creation in

(MICA), the Maryland Department

economically distressed communi-

of Commerce, and the Maryland

ties. After assembling an advisory

State Arts Council, came together

group to help tackle these new

to work with First Lady Hogan to

objectives around economic devel-

explore what a similar market could

opment and job creation, the group

look like in Baltimore. This became

began researching and strategizing

known as the Baltimore Natural

what this market could look like

Dye Initiative, a project aiming to

in order to guide the future of the

fortify local capacity for growing,

project. Through discussions with

processing, and working with natural

members of the initial Natural Dye

dyes by:

Initiative and other individuals in

NATURE'S COLORS IMPACT (FY21) CAPITAL DEPLOYED

$51K

(for farmer compensation, land rental, and equipment)

TOP 3 INDUSTRIES

Textiles, cosmetics, food

the natural dye space in Baltimore, deepening the expertise in our

the advisory group identified natural

region through supporting local

dye as an emerging local market,

talent and bringing in natural

considered options to use a variety

dye practitioners to share their

of plants that are native to Maryland,

knowledge;

and encountered opportunities to engage Baltimore’s urban farming

supporting the development of a

community dye kitchen and learning space; and developing local markets for nat-

ural dye and artisanally produced goods.

FARMS INVOLVED Bliss Meadows backyardbasecamp.org/ bliss-meadows Cherry Hill Urban Garden farmalliancebaltimore.org

community. Parks & People Foundation parksandpeople.org Plantation Park Heights Urban Farm plantationparkheights.org

“This project allows us the opportunity to connect deeper to the richness of plant technologies, food, color, and medicine.” — KENYA MILES FOUNDER OF BLUE LIGHT JUNCTION

Kenya Miles with her son at the Hidden Harvest Farm when the dye garden was first created. Photo credit: Colby Ware.

Social Enterprises Supporting social entrepreneurs in growing their enterprise from idea to scale.

GIVEN THE MANY BARRIERS that

Innovation Works supports social

prevent individuals living in eco-

entrepreneurs through the full

nomically distressed communities

entrepreneurship journey and its

from upward economic mobility,

five-stage social enterprise develop-

entrepreneurship has proven to be

ment pipeline, allowing leaders to

an alternate route that can close the

enter the pipeline at any stage. The

wealth gap. Supporting minority

top three industries of social enter-

entrepreneurs, especially those

prises in IW’s pipeline include retail/

leading social enterprises, is vital to

manufacturing, youth development,

the economic progress of neighbor-

and creative/community arts.

SNAPSHOT OF IW’S ENTREPRENEURS (FY21) ECONOMIC DEVELOPMENT

41%

59%

hoods and the overall well-being of Baltimore.

place-based entrepreneurs (addressing needs specific to Baltimore)

STAGES OF SOCIAL ENTERPRISE DEVELOPMENT PIPELINE IGNITE sets the tone for the social entrepreneurship journey by building an Impact Model through the Theory of Change framework that serves as the foundation of the social enterprise. IDEATE supports emerging social entrepreneurs by focusing on creating a sustainable lean business model around their intended social impact. CREATE equips newly-operating social entrepreneurs with mission-driven business fundamentals so they can effectively guide their operations and growth. GROW provides the social enterprise discipline needed to implement, market validate, adjust and grow the social enterprise into a place-based or scalable business and job creator. SCALE identifies social enterprises that can grow beyond a local market and prepares them for scalable capital investment and accelerated growth.

62%

38%

led by women

led by men

84%

G¨ Þ

¨- ¾-

U%- ¾-

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GENDER BREAKDOWN

RACIAL BREAKDOWN

scalable entrepreneurs (growing beyond the local market)

SCAL E

Indicates number of SEs in each stage of the pipeline

led by BIPOC

Mentor Network

everything from accounting and

The IW Mentor Network represents

financial service to real estate and

IW’s essential accompaniment and

legal services.

support resource for entrepreneurs participating in IW programming.

In 2021, IW will devote tailored

The Mentor Network is a diverse

resources to existing and future

group of accomplished leaders

mentors through the development

with the common goal of sharing

of a mentor-driven Collaborative

their expertise with the next gen-

Leadership Council (CLC), additional

eration of Baltimore entrepreneurs.

mentor engagement opportunities,

Mentors support aspiring and estab-

and increased recruitment efforts.

SNAPSHOT OF IW’S MENTORS (FY21)

active members

2,124 total hours of direct social enterprise support

lished social enterprise leaders with

2,211 total other volunteer hours

$1.4M total dollar value of all volunteer and mentor support

IW Mentors, such as Natasha Dartigue, bring strong business skills and valuesdriven coaching in alignment with IW’s mission.

“What makes Innovation Works really dynamic is that you have mentors from different backgrounds that can apply whatever their specialty is to help build the community, but also build the network of entrepreneurs. I can’t think of another place where you have such a rich pool of resources.” —

NATASHA DARTIGUE BALTIMORE CITY DEPUTY DISTRICT PUBLIC DEFENDER

Social Enterprise Programs Providing social enterprise leaders with programs designed to boost business fundamentals, strategic thinking, and growth strategies.

Left: IW’s virtual Spring 2021 Boost Program cohort. Below: Joshua Day, founder of Mission Fit, presents his executive summary pitch intended to provide an overview of the progress made throughout the program and the status of the social enterprise on the last day of Boost.

INNOVATION WORKS’ STRUCTURED PROGRAMS support social enterprises (SEs) in the later stages of the pipeline with enterprise development curriculum. The curriculum has been developed through a strategic partnership between IW and Miller Center for

entrepreneurs. While in the program,

their business and develop a solid

Social Entrepreneurship. To date,

they learn business fundamentals,

growth strategy that demonstrates

we have adapted and applied

improve their strategic thinking,

an increase in their enterprise’s social

Miller Center’s Global Social Benefit

and articulate a business plan that

impact and a plan for long-term

Institute (GSBI) curriculum into two

demonstrates impact, growth, and

financial sustainability.

variations of IW programs.

long-term financial sustainability.

IW GSBI Boost – CREATE Stage

IW GSBI Accelerator – GROW Stage

riculum was adapted into the IW GSBI

The IW GSBI Boost Program packs

The IW GSBI Accelerator is a

a program designed to apply core

core business lessons into a pow-

6-month program that delves deep

business lessons to the food market

erful 3- to 4-day workshop to help

into eight core social enterprise

industry in order to prepare vendors

local nonprofit, for-profit, and hybrid

business modules. The goal is to help

selected for the new Lexington Market

social enterprise leaders grow as

local SEs hone in on key aspects of

for launch in the spring of 2022.

In 2021, the IW GSBI Accelerator cur-

Transform Lexington Accelerator,

SOCIAL ENTREPRENEUR SPOTLIGHT

“The instructors [in the Boost program] challenged and supported me to reach heights in my business that I never would have on my own. My gratitude is immeasurable.” —

Above: Nkenge Yasin presents her executive summary pitch and works with IW Mentor George Economy as a participant in Boost. Below: Nkenge (far right) and her staff at Learning How! Child Development Center.

NKENGE YASIN FOUNDER OF LEARNING HOW! CHILD DEVELOPMENT CENTER

SNAPSHOT OF IW’S PROGRAMS (FY21)

61 social enterprises supported

28 mentors engaged

NKENGE’S JOURNEY WITH INNOVATION WORKS

Summer 2021: 2nd Learning How! Location Opens

Winter 2019–20:

October 2020:

GSBI Accelerator

Joined IW Board

June 2019:

June 2020:

June 2021:

GSBI Boost

Investor Showcase

Ignite Capital

Program

Investment

Ignite Capital IW’s subsidiary impact fund addresses Baltimore’s critical gap in access to capital necessary to lead and grow sustainable enterprises.

FY21 IMPACT

$640K CO-INVESTOR INVESTMENTS

$375K

$38K

IGNITE CAPITAL INVESTMENTS

MICRO-GRANTS

IN FURTHERANCE OF ITS MISSION, IW founded Ignite

community-oriented startups, and philanthropists’ reluc-

Capital in February 2020, a fund designed to empower

tance to capitalize on such entrepreneurs. Ignite Capital’s

Baltimore residents in economically distressed com-

place-based focus helps distressed communities pre-

munities. Ignite Capital identifies social enterprises

pare for economic activity and develop a viable market,

committed to creating a better future for lower-income

expanding broader impact opportunities. In addition to

communities and communities of color in Baltimore City.

receiving financial support, these social enterprises also

These enterprises lack access to capital due to traditional

receive resources and education from IW in the form of

lenders’ unwillingness to take risks on nontraditional

tailored entrepreneurship curriculum and mentorship.

borrowers, venture capitalists’ lack of interest in funding

“Ignite Capital is the first joint program that says, ‘We will work with you through the technical assistance program, but then we are going to take what you have learned and bring you into a funding opportunity.’ It creates a very fluid world for entrepreneurs where they don’t have to go to five different places because we are bringing the community to them.” —

PATTI CHANDLER VP OF FINANCE & ADMINISTRATION, BALTIMORE COMMUNITY FOUNDATION AND MEMBER OF IGNITE CAPITAL BOARD AND INVESTMENT COMMITTEES

“Participating in Innovation Works’ programming set my business up for success and opened up the door to receive funding from Ignite Capital.” —

For more information on Ignite Capital, check out the Ignite Capital Fiscal Year 2021 Impact Report at www.ignitecapital.org/reports.

CHESTER FRANCE FOUNDER OF LIFTING LABELS, A GRANTEE OF IGNITE CAPITAL

6WDಀ /HDGHUVKLS Innovation Works Staff

Innovation Works Board Members

MARINA BUTLER

JACQUELINE CALDWELL

JAMIE MCDONALD

BILL COLE

NICK NAPOLITANO

Manager, Strategic Initiatives

HANNAH CORRELLI

Manager, Experience Design

MADI DUFFY

Manager, Marketing & Communications

MARTI ECKERT

Ignatian Corps Volunteer

JASMINE GODBOLT

Executive Assistant & Operations Coordinator

NICHOLAS MITCHEL

Manager, Enterprise Development

JAY NWACHU

President & CEO, Innovation Works

SALLY RATRIE

Director, Operations & Culture

STU TOBIN

Manager, Mentor Network, Executive In Residence

Ignite Capital Staff JAY NWACHU

President, Ignite Capital

GREGORY HUNTER

Funding Coordinator

President, Whittier-Monroe Community Neighborhood Association Partner, Margrave Strategies

JOHN CICCONE

President, St. Ignatius Loyola Academy

ANTHONY DAY

President & Head of School, Loyola Blakefield

SABRINA DEPESTRE

Director of Marketing & Recruitment, Maryland Institute College of Art (MICA)

FAGAN HARRIS

President & CEO, Baltimore Corps

BILL HEISER, PHD

Founder, Generosity & The Courage.Us (Co-Founder) Director of Social Ministries, Jesuits USA East Province

JIM PETERSON, JR.

VP, Business Banking Relationship Manager, M&T Bank

DAN RIZZO

Founding Chief Innovation Officer, Inovalon

TINA RODRIGUEZ

CFO, General Counsel, & Co-Founder, SAGE Dining Services

PAMELA ROUSSOS

President, Cristo Rey Jesuit High School

Chief Community Officer, Miller Center for Social Entrepreneurship

FRANK KNOTT

FR. BILL WATTERS, SJ

Founder & Board Chair, Innovation Works; Founder & CEO, ViTAL Economy

President, Loyola Early Learning Center

NKENGE YASIN

Child Development Specialist, Learning How, Inc.

Ignite Capital Board Members

Ignite Capital Investment Committee

PATTI CHANDLER

MURRAY DALZIEL

CHRIS GRANT

VP of Finance & Admin, Baltimore Community Foundation Dean, University of Baltimore, Merrick School of Business

JAY NWACHU

President & CEO, Innovation Works President, Ignite Capital

FR. RICHARD MCGOWAN

Treasurer, The Jesuits USA East Province

DAN RIZZO

Founding Chief Innovation Officer, Inovalon

VP of Finance & Admin, Baltimore Community Foundation Investment Manager, Blueprint Local

BREE JONES

Founder & CEO, Parity

KEN MALONE

Co-Founder, Early Charm Ventures

JAY NWACHU

President & CEO, Innovation Works President, Ignite Capital

DAN RIZZO

Founding Chief Innovation Officer, Inovalon 17

'RQRUV &RQWULEXWRUV We express our deep appreciation and thanks to the organizations and individuals who support IW, Ignite Capital, and our social enterprises. Corporations Berman McAleer Foundation for Education and Economic Development CareFirst Blue Cross Blue Shield Continental Realty Corp Howard Bank Kelly Benefits M&T Bank The SAGE Foundation

Foundations & Other Institutions The Abell Foundation American Baptist Mission Home Society Baltimore Development Corporation Baltimore Homecoming Baltimore Small Business Support Fund at Baltimore Community Foundation The Bunting Family Foundation Ping and Amy Chao ChowFamily FamilyFoundation Foundation Cristo Rey Jesuit High School Goldseker Foundation The Reginald F. Lewis Foundation Transparent Fish Fund T Rowe Price Foundation USA East Province of the Jesuits

Individual/Family Offices 4K Foundation Baltimore Tiger21 Group Murray Dalziel and Elizabeth Rogers Family Fund Scott and Kim David Steve Dubin Pierce B. Dunn and Barbara L. Hoyt Elbow Fund Alex Fisher The Green Family Fund Janet and Dixon Harvey Senator Frank and Janet Kelly Manus Christi Charitable Foundation Jessica Pothering Matthew Seward Barbara and Sig Shapiro Philanthropic Fund Jim and Sandy Smith The Spriggs Family The Wiese Family Charitable Fund

“As a young organization, Innovation Works holds immense potential to impact Baltimore by being a source of connection for so many assets already existing across the city— assets including people, resources, and communities. We are honored to step into these new roles and work towards IW’s mission, and we know this organization is just getting started.” — DAN RIZZO & TINA RODRIGUEZ FY22 BOARD CHAIR & VICE CHAIR

Financials As of and for the period ended June 30, 2021

Statement of Financial Position

Statement of Activities

INNOVATION

IGNITE

WORKS

CAPITAL

COMBINED

ASSETS

INNOVATION

IGNITE

WORKS

CAPITAL

COMBINED

$2,418,388

$140,772

$2,422,360

Total expenses

$2,540,051

$49,280

$2,452,531

NET REVENUE

-$121,663

$91,492

-$30,171

REVENUE

current assets

$805,041

$811,680

$1,616,721

other assets

$33,810

$172,495

$206,305

Total assets

$838,851

$984,175

$1,823,026

Total revenue

EXPENSES

LIABILITIES current liabilities

$77,012

$450

$77,462

$878,279

$77,012

$878,729

$955,741

unrestricted assets

$560,395

$105,446

$665,841

restricted assets

$201,444

Total net assets

$761,839

$105,446

$867,285

$984,175

$1,823,026

long-term liabilities Total liabilities

NET ASSETS

Total liabilities and net assets $838,851

Expenses

Revenue Fundraising

Interest Income

0.5%

0.2%

Administrative

Earned Revenue

11.7% Contributions 30.7%

Programs

In-Kind

95.5%

57.4%

The Big Picture Ultimately, IW’s work lacks purpose without an understanding of the context within which we exist in Baltimore City. Decades of redlining and racially motivated policies have left many predominantly Black neighborhoods in Baltimore lacking adequate resources and investment to provide support for their community members. Here is a quick snapshot:

LIVING & WORKING IN BALTIMORE CITY

34K

63K

Small businesses in Baltimore are

2017 median household income for Black residents in Baltimore is nearly half that of white residents

42%

53%

47%

BIPOCowned

womenowned

60% vs While these percentages increased in the last decade (2007–2016), small business lending by traditional banks decreased by 20%

homeownership among Black residents in Baltimore compared to that of white residents

Neighborhoods that are less than 50% Black receive over six times the investment of neighborhoods that are more than 85% Black.

of Baltimore City households have an annual income of less than $25K.

50% of Innovation Works’ social entrepreneurs are working or living within neighborhoods with a median household income of less than $40K. 20

Sources: Abell Foundation, 2020; Community Economic Development Hub, 2020; Racial Wealth Divide Initiative, 2017; 21st Century Cities Initiative, 2018

Design by: Lynde Pratt // LP Design Collaborative

28%

LESSONS AND OPPORTUNITIES As an organization, we strive to be in a constant state of reflection. Throughout the past year, as we navigated the ups and downs of our work and of our world, we found ourselves repeating a cycle with each new challenge: listening, discerning, and responding accordingly. This cycle allowed us to change and advance, evaluate how we are achieving our goals, and consider how these goals ultimately reflect our values.

Listen

Discern

Respond

MOVING FORWARD In response to challenges we strive to address in Baltimore and the lessons we have learned over the past year through the process outlined above, we have identified a number of key priorities to intentionally focus our efforts in FY22.

Continue to strengthen Ignite Capital’s structure and systems to deploy capital more efficiently.

Increase capacity to support entrepreneurs by hiring 2 pipeline staff, transitioning mentor manager role to full time, and implementing a pipeline management system.

Launch board committee tasked with developing systems to track IW’s impact and tell our story with concrete data that accurately reflects our work.

Review and refine IW’s long-term strategic plan to maximize impact in the coming years.

Manage for organizational growth through development of internal systems and team culture.

Refine the scope of our neighborhood strategy to make a more focused impact.

1400 Greenmount Avenue, Ste. B01 Baltimore, MD 21202 USA