New Profit 2019 Annual Report

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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


Table of

05 Portfolio Investing

Letter from New Profit’s CEO and Board Chair

08 11

Build Investments


Catalyze Investments

19 Portfolio Alumni


New Profit 2019 Annual Report


Investing in Change at the Systemic Level


32 New Profit Team Breakthrough Moments


44 46


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



New Profit 2019 Annual Report


Letter from New Profit's Founder & CEO, Vanessa Kirsch and Board Chair, Jeff Walker

New Profit 2019 Annual Report


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


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


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


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.


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



New Profit 2019 Annual Report



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


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:



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

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)


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.


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




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


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



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


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


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


Valor Collegiate Academies


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.


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



New Profit 2019 Annual Report


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


median growth rate of beneficiaries served by Build Investments during their New


of portfolio organizations reported an annual growth rate of beneficiaries served of


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

New Profit 2019 Annual Report





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:


Alliance for Youth Organizing

New Politics Academy

Millennial Action Project

Sarah Aduelo

Emily Cherniack

Steven Olikara



The People

Rev. Gregory Holston

Darrell Scott

Katie Fahey

Pillars Fund Khasif Shaikh




Our Voice Nuestra Voz

Reyna Montoya

Ashley Edwards

Allen Woods

Mary Moran

New Profit 2019 Annual Report



PS 305


Think of Us

Maya Martin

Yannell Selman

Christine Ortiz

Sixto Cancel

Clean Decisions

Detroit Justice Center


Ladies of Hope Ministries

Will Avila

Amanda Alexander

Marcus Bullock

Topeka Sam

Mission: Launch


Prison Scholar Fund

Reentry Campus Program

Teresa Y. Hodge

Jason Cleaveland

Dirk Van Velzen

James Monteiro

Austin Justice Coalition


First 72+

Chas Moore

George Galvis

Daniel Tapia

The Forestry and Fire Recruitment Program Brandon Smith

Freedom Project David Heppard

Operation Restoration

Sacred Generations


Syrita Steid-Martin

Percilla Frizzell

Gina Castillo

New Profit 2019 Annual Report




Eye to Eye

GO Public Schools


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

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:




Structural Change (explicit)





Relational Change (semi-explicit)


Transformative Change (implicit)

Source: The Waters of Systems Change, FSG (2018)

New Profit 2019 Annual Report


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



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



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


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



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

25 25

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)



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


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.



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


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


New Profit 2019 Annual Report



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


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)



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


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



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.


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


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:



• New Profit’s 2015 Gathering of Leaders featured conversations on



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;


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


(DIG) • We launched the #AdvanceEquity digital campaign to drive dialogue and inspire action to advance equity in America


New Profit 2019 Annual Report



• 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



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



• 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.


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


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


America Forward Coalition members operate in over 15,000 communities in all 50


As of 2019, America Forward’s advocacy efforts resulted in $1.7B in federal funding


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



New Profit 2019 Annual Report

New Profit Staff


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


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


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


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


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.


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



Josh Bekenstein

Managing Director

Managing Director

Bain Capital

Bain Capital

Sam Cobbs

David Gergen Founding Director


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 – Chief Growth Officer Deloitte Consulting LLP

Stephen M. Jennings

Vanessa Kirsch


Founder and CEO

Monitor Deloitte Consulting LLP

New Profit

Wendy Kopp

Matt Levin


Founder and Principal

Teach For All

Investor Twin Shores Capital


New Profit Annual Report 2019

Henry McCance Chairman Emeritus Greylock Partners

Duncan McFarland The Bromley Charitable Trust

Valerie Mosley

Kristin Mugford


Senior Lecturer

Valmo Ventures

Harvard Business School

Mark E. Nunnelly

Jim Pallotta

Former Secretary of Technology

Chairman & Managing

Service and Security


Commonwealth of Massachusetts

Raptor Group

John Rice

Brian Spector

Founder & CEO



Reflow Medical

Venkat Srinivasan

Jeffrey C. Walker

Managing Director


Innospark Ventures

New Profit

New Profit Annual Report 2019


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


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


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


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


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




21% Corporations and Foundations



Individuals and Family Foundations

In-Kind Services



Program Fees and Other Misc.

Individuals and Family Foundations


Corporations and Foundations


In-Kind Services $2.0M


New Profit 2019 Annual Report

Program Fees and Other Misc.






Change in restricted


Change in unrestricted




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


Grantee Support

Gathering of Leaders/ Convenings


Deloitte Pro Bono Select Donor Supported Initiatives

Field Building

Communications: Legal/Strategy Pro Bono








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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