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Celebrating the Story of the Pathways Fund ANNUAL REPORT 2015 - 2016


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ANNUAL REPORT 2015 - 2016

“My first year on New Profit’s Board of Directors has coincided with a challenging moment in our country, but I’m more convinced than ever that our work is critical. Across the portfolio, including at MLT, we are seeing growing evidence of direct impact and new pathways to scale, but the young people we serve, particularly from communities of color, feel more vulnerable and fearful about the future. Our commitments to equity and inclusion are just as important as the uniquely valuable capacity building support we provide for social entrepreneurs. As a community, we have to continue to work together and push harder.” - JOHN RICE CEO, MLT


ANNUAL REPORT 2015 - 2016

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CONTENTS

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LETTER FROM OUR FOUNDER AND CEO

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MESSAGE FROM OUR BOARD CHAIR

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2016 HIGHLIGHTS

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FOCUS FUNDS

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THE STORY OF THE PATHWAYS FUND

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NEW PROFIT BOARD OF DIRECTORS

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DONOR ROLL

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FINANCIALS

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PORTFOLIO DIRECTORY

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Letter from our Founder and CEO

“Faith in the endgame helps you live through the months or years of buildup.” - JIM COLLINS

The past year has been a profound learning experience and inflection point for the New Profit community for two reasons. First, the strands of our nearly 20 years of hard work with social entrepreneurs and other partners began to pull together, presenting a clearer vision of what impact we are driving and where we must go in the future. And second, America received a jolting wake-up call from the 2016 Presidential election.

The seed of Pathways was planted with the growth capital and capacity building investments we made in three organizations - College Summit, Year Up, and iMentor starting in 2002. Through these partnerships, we learned that focusing separately on investments in college access, college success, and workforce development for low-income young people was not enough. We had to look at pathways to and through college and into careers as a continuum. In 2010, we partnered with the federal Social Innovation Fund and an extraordinary group of co-funders to powerfully advance this idea by scaling the impact of, and helping foster collaboration between, the organizations

We are still thinking through what all of this means, but the overarching call to action isn’t in doubt: we must remain committed to our founding vision of an entrepreneurial movement driving change in philanthropy, and push harder than ever to advance our mission of breaking down barriers

above, as well as Single Stop, Youthbuild USA, and College Advising Corps. After five years of hard work, we can celebrate the impact of Pathways on a number of different levels:

between people and opportunity in America. •

The six Pathways organizations were able to collectively double the number of young people they reach to more than 400,000 and expand their operations into 35 new

Over the next year, leading up to New Profit’s 20th

communities across America;

anniversary in 2018, we are going to be sharing New Profit’s evolving impact story with you, our supporters and partners,

25+ national collaborations emerged among the Pathways

and the broader social impact sector in new ways. We begin

organizations that strengthened their ability to better meet

that effort in this report with the story of the Pathways Fund,

the needs of the individuals and communities; and,

which shows how we’ve built upon our core approach of investing in visionary social entrepreneurs to open up new avenues to systemic impact.

The initiative also led us to strengthen New Profit’s measurement and evaluation approach and inspired the creation of our Focus Funds.


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The story of Pathways doesn’t stop there. J.B. Schramm,

The Pathways story shows our original vision in action.

the founder of Pathways partner College Summit, joined

It also shows how we built on that vision as we learned

New Profit in 2014 to launch one of those funds, the Learn

more fully what it takes to unleash innovation and

To Earn Fund, which advances the Pathways vision through

entrepreneurship in the social sector. Today, Pathways

new strategies, including investing in workforce development

organizations are leading the charge on systems change,

technology, collaborating more deeply with large employers,

driving the college-to-career success field forward. And the

and, ultimately, reaching young people for whom college may

solutions that are being tested in the Learn to Earn Fund,

not be a viable waypoint. With the backing of some of

and in other initiatives that you’ll read about in the pages

America’s most forward-thinking foundations, the Learn to

ahead, have the potential to go beyond demographic and

Earn Fund is working with the XPRIZE Foundation to design

geographic boundaries to change the lives of millions

a transformative competition to spark innovation in the field.

of people.

That brings us back to the 2016 Presidential election and the

Our challenge is to stay committed, engaged, and most of

critical importance of our work moving forward. Like many

all, together. As our Board Chair, Jeff Walker, has so often

across the country and in every sector, we’re taking new

said, it takes an ensemble, not a soloist, to solve a complex

measure of suffering and systemic failure, particularly outside

problem and change a system. The New Profit community

the urban areas that have long been the focus our invest-

is unique in its willingness to take chances on new people

ments. People who voted and people who didn’t - from across

and solutions, do the hard capacity building work that is

ideological, demographic, and geographic boundaries - share

necessary for the social impact sector to flourish, engage

an essential frustration about stagnation, lack of opportunity

in the policy sphere, and collaborate across sectors to

and accountability, and the fact that they aren’t sharing

advance our mission.

in the spoils of the new economy. They called for disruption in a variety of ways, including some that we find abhorrent and unacceptable.

At this extraordinary intersection in our history, we ask you to recommit to the New Profit mission and community. Please consider increasing your support for our

New Profit was founded in 1998 based on deep concerns

work and, just as importantly, reach out into your networks

about opportunity divides and a conviction that we can do

to find people who want to do something new and bold

better. From the beginning, we sought to answer those

with their philanthropy. We need partners - both steadfast

concerns by drawing lessons from the private sector to find

and new - now more than ever.

and scale the best social innovations.

Thank you for your support and partnership.

Vanessa Kirsch, Founder and CEO

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Message from our Board Chair

The New Profit community remains so unique and critically important in the broader social impact sector that spans philanthropy, public policy, business, and other areas.

I think two things in particular are going to need additional focus from all of us to build our momentum and impact: equity and inclusion, and systems change. On the former, we are increasing our support for social entrepreneurs and other changemakers from diverse communities and backgrounds. If our aim is to find and back the best talent in America, we must broaden our frame of reference and learn from people with whom we have not traditionally partnered.

We are among a very few entities willing to take risks and

That’s what the last two Gatherings of Leaders, the

invest ahead of the curve in new ideas, rising leaders, and

expansion of our Accelerator program, and other activities

emerging approaches. Our core areas of expertise – capacity

have been about.

building for social entrepreneurs, convening and managing complex collaborations, measurement and evaluation, and nonpartisan policy and public advocacy – are absolutely

I am also bullish about New Profit continuing to play

essential, but under-leveraged, tools for achieving systemic

a leadership role in advancing dialogue and action about

social impact.

systems change strategies and approaches. Here’s a quote on the subject from a recent Harvard Business Review article I published with Vanessa Kirsch, New Profit’s Founder and

As noted in the Pathways Fund story later in this report, we

CEO, and Jim Bildner of the Draper Richards Kaplan

are seeing real evidence that our long-term investments are

Foundation: “Over almost two decades, the social enterprise

building on each other and advancing systemic change.

space has been learning how direct impact and systems

As a result, more and more individual philanthropists and

change work together. The work our entrepreneurs face

institutional funders, including enormously influential

today is more complex than ever and requires a set of tools

players like the Bill & Melinda Gates Foundation and

and a framework designed to address the complexity

the Chan Zuckerberg Initiative, are supporting us and

inherent when innovations are integrated into existing

joining the New Profit community.

systems.”


BOARD OF DIRECTORS ANNUAL REPORT 2015 - 2016

The tools and framework mentioned in our Harvard Business Review Article which we are calling “systems entrepreneurship,” help leaders look beyond simply building a organization at other levers, including policy and communications, that need to be pulled to catalyze an organization’s impact on a system.

As a community, we have huge social impact investment opportunities and challenges on the horizon, as you can see. Let’s pledge to work with each other more closely than ever, and bring new supporters into our community, to maximize what we’re able to achieve. I’ll end with a quote from Atul

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“Better is possible. It does not take genius. It takes diligence. It takes moral clarity. It takes ingenuity. And above all, it takes a willingness to try.”

Gawande that I think is important at this complex moment in New Profit’s history and American history:

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- ATUL GAWANDE

Thank you, and I look forward to working with all of you on the road ahead.

Jeff Walker, Board Chair


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2016 Highlights NEW ORGANIZATIONS JOINING OUR SOCIAL IMPACT COMMUNITY

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REIMAGINE LEARNING FUND

REIMAGINE LEARNING FUND

NEW PROFIT INNOVATION FUND

NEW PROFIT INNOVATION FUND

NEW PROFIT INNOVATION FUND

REIMAGINE LEARNING FUND

NEW PROFIT INNOVATION FUND

REIMAGINE LEARNING FUND, INCUBATION

For more information, please view the

NEW MEMBERS JOIN THE BOARD

Portfolio Directory REIMAGINE LEARNING FUND, INCUBATION

on page 26-32 and visit

WENDY KOPP, Founder of Teach For America (early New Profit

www.newprofit.org.

grantee-partner) and CEO and Co-founder of Teach For All; STEVEN BARNES, a Managing Director at Bain Capital Private

Equity; and MIKE CANNING, Principal at Deloitte Consulting LLP, joined our board of directors. ACCELERATOR PROGRAM GROWS JEFF WALKER, a longtime supporter and board member,

As part of our continuing effort to find and support the most talented social entrepreneurs from diverse communities and backgrounds across America, we welcomed the second group of visionary leaders into New Profit’s one-year Women’s

became the new Chairman of New Profit’s Board, succeeding JOSH BEKENSTEIN of Bain Capital Private Equity.

www.newprofit.org/boardupdate

Accelerator program. They are: MARCO DAVIS JOINS NEW PROFIT TEAM SAYU BHOJWANI, The New American Leaders Project AIMEE EUBANKS-DAVIS, Braven YSCAIRA JIMENEZ, LaborX

MARCO DAVIS, the Obama Administration’s former

Deputy Director of the White House Initiative on Educational Excellence for Hispanics, joined New Profit as a Partner to

LAURA WEIDMAN POWERS, CODE2040

provide strategic insight and advice to New Profit’s Focus

CARMEN ROJAS, The Workers Lab

Funds, field leadership, and portfolio investing units.

KIAH WILLIAMS, SIRUM

His particular focus will be on identifying opportunities for engaging new populations and communities, increasing

MARIA VERTKIN, Found in Translation

pipeline diversity, and enhancing equity and inclusiveness

JUSTINE ZINKIN, Neighborhood Trust Financial Partners

in social entrepreneurship.

www.newprofit.org/visionarywomen

www.newprofit.org/marco


ANNUAL REPORT 2015 - 2016

AMERICA FORWARD’S LEGISLATIVE AND 2016 PRESIDENTIAL CAMPAIGN ACTIVITIES

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#ADVANCEEQUITY DIGITAL CAMPAIGN

#AdvanceEquity is a digital dialogue series about equity, America Forward, New Profit’s nonpartisan policy initiative

inclusion, and social impact. Powered by New Profit and Hiker

and coalition, engaged deeply in 2016 in advocacy efforts

and started in June 2016, the campaign is a digital buildout of

dedicated to advancing social innovation and social

the rich and provocative conversation that was started at New

entrepreneurship. America Forward conducted over 30 policy

Profit’s 2016 Gathering of Leaders.

briefings with Presidential campaign staff; drafted transition memos and policy recommendations for the first 100 days

www.newprofit.org/advance-equity

and first term; hosted Coalition site visits, Today’s Student town halls, and policy summits; placed 18 Today’s Student ambassadors on college campuses in three battleground states; and managed a robust communications effort. America Forward also played an active role in advocacy and implementation efforts around the Every Student Succeeds Act (ESSA), the Workforce Innovation and Opportunity Act (WIOA), the Evidence-Based Policymaking Commission Act, and the Social Impact Partnerships to Pay for Results Act. www.AmericaForward.org

THE 2016 GATHERING OF LEADERS

OUR GROUNDBREAKING DELOITTE COLLABORATION

TULAINE MONTGOMERY (Managing Partner, New Profit), BRITTANY PACKNETT (Executive Director, St. Louis Region, Teach For America; Leader, Black Lives Matter), DEVAL PATRICK (Former Governor, Commonwealth of Massachusetts; Managing Director, Bain Capital) at the 2016 Gathering of Leaders.

We continued to strengthen and expand our groundbreaking collaboration with Deloitte in 2016, finishing capacity building projects with grantee-partners including New Leaders, College Possible, First Place for Youth, Eye to Eye, Roca Inc.,

The 12th annual Gathering of Leaders, held March 23-24,

New Teacher Center, and Match Education. In addition,

2016, was an extraordinary example of what can happen with

we collaborated with Deloitte to host a discussion on the

honesty and collaboration. This year’s event built upon the

future of problem solving with Nobel Peace Prize-winner

“Equity. Inclusion. Impact.” dialogue that we started last year,

Muhammad Yunus, and published “Millennials are Reshaping

moving from theory into action.

the World of Social Impact” in Fast Company.

www.newprofit.org/2016Gathering

www.newprofit.org/deloitte

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Focus Funds New Profit Innovation Fund GOAL: Identifying and supporting the best social problem solvers in

new New Profit Innovation Fund organizations offer a fresh

America.

perspective on improving student learning, whether focusing on teachers, curriculum, or the students themselves. See pages 26-28

In 2016, the New Profit Innovation Fund made four new capacity build-

for more information.

ing investments in partnership with the Bill & Melinda Gates Foundation: Enlearn; Leading Educators; LEAP Innovations; and UnboundEd. These

Learn more at www.newprofit.org/NPIF

Reimagine Learning Fund GOAL: Supporting communities and schools to create teaching and

individuals who are putting the needs of our most vulnerable students

learning environments that unleash creativity and potential in all

at the center of the national dialogue about the future of learning in

students – including those with complex needs and challenges –

the U.S., reshaping federal and state policy, supporting district-

so that they realize academic and life success.

level change efforts, and empowering young people, parents, and educators to drive transformative change. In 2016, local impact pilot

Reimagine Learning is a five-year, $35 million dollar fund that has

projects were launched with Salem and Lawrence school districts in

invested in 20 high-potential nonprofit organizations that, together, are

Massachusetts. See pages 31-32 for more information.

reshaping K-12 education across the nation. Reimagine Learning has convened powerful conversations across a diverse network of over 450

Learn more at www.newprofit.org/RL

Reimagine School Systems Fund GOAL: Significantly and rapidly increasing the number of high

In 2016, the Reimagine School Systems Fund continued its work with

-performing schools serving low-income students (charter and

extraordinary grantee-partners including Innovate Public Schools and

district schools) by funding, advising, and building powerful individual

MATCH Education, while also forging new relationships with

organizations and practitioner networks on both the demand and

Education Cities, GO Public Schools, New Politics Leadership

supply side of systems change.

Academy, and Polis.

Learn more at www.newprofit.org/RSS


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Learn to Earn Fund GOAL: Supporting and accelerating the development of

of critical skills, behaviors, and mindsets (such as leadership, critical

10 million more career-ready Americans by 2025.

thinking, teamwork), and by doing so increase the number of

In 2016, Learn to Earn partnered with the XPRIZE Foundation to design the Power Skills XPRIZE competition. The competition aims to incentivize the development of effective and scalable tools that support the progress

Americans with these skills, spark broader awareness, and ultimately meet employer demand.

Learn more at www.newprofit.org/LTE

Early Learning Fund GOAL: Overcoming the opportunity gap by giving children a strong

together with increasing public recognition of the importance of a

early start.

strong start, have created a dynamic opportunity for transformative

The Early Learning Fund seeks a world where all children have a start in their earliest years of life that sets them on a course to fulfill their potential. Extraordinary advances in neurobiology and behavioral science,

change in the early learning field.

Learn more at www.newprofit.org/EL


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ANNUAL REPORT 2015 - 2016

The Story of the Pathways Fund


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The Story of the Pathways Fund The story of the Pathways Fund, which closed in 2016, is an extraordinarily important one for the New Profit community. It is one of the signal achievements in our nearly 20-year history, because it helped drive large-scale results for young people from geographically diverse, under-resourced communities and served as a vital learning lab for the collaborative, holistic approach that we believe complex social problem solving demands.

In one initiative, we brought together our: •

Enduring willingness to invest ahead of the curve in promising social innovations and commit to them beyond typical grant cycles;

Core growth capital and capacity building model for helping boundary-breaking social entrepreneurs scale their organizations and impact;

Belief in collaboration and community-building across sectors;

Strong due diligence, and rigorous measurement and evaluation processes; and,

Unique capacity for shaping public policy to create space for social innovation and social entrepreneurship to flourish.

“Because of the impact and evidence base we were able to build, Pathways became the archetype for how we operate today,” said TULAINE MONTGOMERY, a Managing Partner at New Profit who led the fund and now oversees our Accelerator programs. “No one person or organization has the power to create the systemic change we are pursuing, but we now know that a multi-disciplinary ensemble can come together and drive significant progress.”

2015

2010

403,512

224,005

INCREASED “LIVES TOUCHED” CUMULATIVE BENEFICIARIES SERVED IN 2010 AND 2015 Pathways funding and support helped the six organizations almost double the number of collective beneficiaries served from 2010 to 2015.


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HERE’S HOW IT HAPPENED

Pathways was created in 2010 in reaction to a stark challenge facing America - one that has become even more entrenched in the wake of the Great Recession:

For nearly 10 years, New Profit had been investing in ways to address this challenge Two-thirds of all jobs now require a postsecondary degree or

through its support for three groundbreaking

certificate. Over 95 percent of jobs created during the recovery have

organizations: COLLEGE SUMMIT

gone to workers with at least some college education, while those

(joined portfolio in 2002), which builds

with a high school diploma or less are being left behind. Access to

a college-going culture in high schools

the education needed for sustainable employment still eludes

through peer leaders; YEAR UP (2005),

America’s low-income communities. More than 5.5 million young

which connects Opportunity Youth to private

adults ages 16-24 are “Opportunity Youth” who are not attending

sector mentorship and jobs; and iMENTOR

school, not working, and have no credential beyond high school.

(2009), which matches high school students with long-term mentorship for college success.

Through our work with these organizations, we learned something profound that seeded the idea for Pathways: individual college access/success and workforce development organizations have an important positive impact on the young people in their programs. However, viewing education and employment as separate issues, rather than a continuum, can be detrimental: too many people fall through gaps at critical transition points. A young person’s chances of successfully getting into, persisting in, and graduating from college, and then transitioning into a meaningful career are all interconnected.The supports around them should be as well.

Two years into the Obama Administration, we saw an opportunity to push this idea forward. One of the major social innovation initiatives launched by President Obama - the Social Innovation Fund (SIF) at the Corporation for National and Community Service - was created to test the idea that the federal government could identify and catalyze innovative, evidence-driven nonprofits, while also getting out of the way to let the nonprofits execute. Congress authorized SIF as part of the Edward M. Kennedy SERVE America Act in 2009, in part thanks to strong support and advocacy from America Forward, New Profit’s nonpartisan policy arm (www.americaforward.org).


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The Story of the Pathways Fund In response to SIF’s inaugural call for funding proposals around

The group soon expanded to include co-funders (see

youth development, New Profit developed a proposal based on

graphic for details) and an ambitious, groundbreaking

our work with existing grantees COLLEGE SUMMIT, YEAR UP,

college-to-career success effort - later dubbed the Path-

and iMENTOR. To round out the cohort, New Profit identified three

ways Fund - was proposed to SIF. After a rigorous selection

new organizations: COLLEGE ADVISING CORPS, which places

process, we were honored to have been chosen as an inaugural

recent grads as college advisers in high schools; SINGLE STOP,

grantee of SIF, which provided a five-year, $25 million grant that

which provides benefits and other counseling to low-income

allowed us to get to work.

families; and YOUTHBUILD USA, which helps OPPORTUNITY YOUTH work toward their high school diploma or equivalency

while learning job skills. LEVERAGED SIGNIFICANT FUNDING Through the Pathways Fund, New Profit deployed $50 million of public and private capital and leveraged an additional $43 million raised by portfolio organizations, totaling an unprecedented infusion of ~$93 million of direct investments and services into six high impact college access / success organizations.

THE HARD WORK OF COLLABORATION

New Profit matched SIF’s grant on a 1:1 basis by raising funds from external partners, and deployed $50 million of direct investments and services to help increase the reach and impact of the six Pathways organizations. As with all of our portfolio organizations, expert New Profit staff advised on critical issues related to impact, scale, and sustainability. Additionally, as part of the SIF’s focus on data and cross-sector collaboration, New Profit helped the six organizations engage in rigorous evaluation studies to prove their impact, and brought them together with funders and other sector leaders on a regular basis to share with, support, and learn from each other.


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Primarily through these regular convenings, New Profit created a strong learning community where social entrepreneurs and their leadership teams, funders, and key leaders in the field were able to build relationships, share learnings on building rapidly growing organizations, collectively brainstorm approaches to address entrenched challenges, and identify and strengthen collaborations where it made sense. All six organizations were also actively engaged with America Forward, working on a national scale to enact change through legislation. FOSTERED COLLABORATIONS The Pathways Fund successfully facilitated organic collaborations among the six organizations.

COLLEGE ADVISING CORPS.

COLLEGE SUMMIT

YEAR UP

YEAR 1 YEAR 2 YEAR 3

YOUTHBUILD

SINGLE STOP

iMENTOR

COLLABORATIONS FOCUSED ON •

PROGRAM QUALITY

INFRASTRUCTURE

NEW MARKETS

BENEFICIARY RECRUITMENT

The Pathways organizations reported that being part of the Pathways Fund enabled them to leverage program and practice knowledge from their peers to strengthen their own services to youth. By the midpoint of the Pathways Fund, there were 25 collaborations between national offices across the Pathways network and more than 40 collaborations between local sites. All six Pathways organizations indicated collaborations with at least two other organizations across their national offices.

“New Profit is not just about organization building, but asking the much harder question of ‘how do you maximize the impact you have writ large on a system or on a societal challenge?’” - GERALD CHERTAVIAN

Founder and CEO,

YEAR UP


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The Story of the Pathways Fund WHAT WAS OUR IMPACT?

Collectively, the Pathways organizations leveraged SIF funding to double the number of young people served over the 5-year initiative to more than 400,000 and expand into more than 35 communities in the U.S. The 25+ national collaborations that emerged among the Pathways organizations strengthened their ability to better meet the needs of the individuals and communities they served along that college-to-career continuum.

In addition to helping the partner organizations grow their direct impact, the Pathways Fund helped drive key legislation and policy innovations in partnership with America Forward, including full appropriation of funding of the SIF ($340 million), passage of the Workforce Innovation and Opportunity Act (including $300+ million in new funding for outcomes-driven programs), and passage of the Every Student Succeeds Act. The Pathways organizations’ evaluation studies increased their own evidence level and capacity.

The Social Innovation Fund was built on the idea that by lifting up the most promising innovations in the social sector, building their evidence base, and igniting widespread change through cross-sector efforts, we can tackle some of the country’s most deeply rooted problems. The significant accomplishments of the Pathways Fund have demonstrated many opportunities philanthropy has to make significant change, and also generated key learnings for the roles funders can play to catalyze and amplify the important work being done on the ground.

“[New Profit’s Director of Evaluation] has

“The Pathways experience changed in

been helpful for us in thinking about research

important ways who New Profit is as an

strategies and how to use the evaluation

organization. The evaluation focus helped

results to communicate those internally and

us see even more clearly the value of an

externally…the research investment has been

evidence-focused orientation. As a learning

a good new step and that is a helpful

organization, the New Profit leadership was

trajectory for us…evaluation support has been

quick to incorporate those perspectives into

consistent across the years.”

the management of our organization, its funds, and our portfolio organizations.

- PATHWAYS ORGANIZATION CEO

The result has been a clearer focus on our value proposition and a greater ability to advance our mission.” - LANCE POTTER

Director of Evaluation, NEW PROFIT


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WHAT WAS OUR IMPACT?

For example, learnings from Pathways have significantly influenced New Profit’s current structure and strategy. Through Pathways, New Profit saw the potential of connecting key actors in the same field to develop a learning community; driving systemic impact through aligned action, policy, and other approaches; and increasing opportunities for co-funder engagement. Issue-specific “focus funds” are now core to New Profit’s strategy and operating model. Our experience with Pathways also highlighted the importance of activities such as having channels for feedback from organizations and co-funders, developing internal evaluation expertise, and fundraising upfront for multi-year funds.

The lessons we learned through Pathways are ones we can apply to our own work, the field, and the social sector more broadly. We uncovered what it takes to achieve significant results in a short period of time through collaborative work with cross-sector partners, including: adjusting feedback channels to be more responsive to shifting organizational needs and priorities, fostering organic collaborations rather than funder-driven partnerships, launching and managing rigorous evaluations, and making multi-year commitments.

To learn more about the Pathways Fund, including key accomplishments and lessons learned over the five-year initiative, please see their final fund report “Pathways To Opportunity: Final Report of New Profit’s Pathways Fund 2010-2016”. Learn more at www.newprofit.org/PTO

“We have learned a lot of the value and

“[Pathways] drove us to develop expertise in

importance of evaluation such that it has

evaluation and use of evidence and that has

changed who we are as an organization.

permeated our work outside of Pathways

We now build it in and embed it in everything

Fund – we are much stronger there than

we do. We were very naïve about it when this

we were five years ago.

began and we now are not and I think we are a much stronger organization as a result.” - PATHWAYS ORGANIZATION CEO

- PATHWAYS ORGANIZATION CEO


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Board of Directors

STEVE BARNES*

JOSH BEKENSTEIN

Managing Director

Managing Director

MIKE CANNING* Principal

BAIN CAPITAL PRIVATE EQUITY

BAIN CAPITAL PRIVATE EQUITY

DELOITTE CONSULTING LLP

PAUL GROGAN

DAVID HARRIS

President & CEO

Provost & Senior Vice President

Principal, Strategy & Operations

THE BOSTON FOUNDATION

TUFTS UNIVERSITY

MONITOR DELOITTE

VANESSA KIRSCH

WENDY KOPP*

HENRY McCANCE

Founder & CEO

CEO & Co-Founder

Chairman Emeritus

NEW PROFIT

TEACH FOR ALL

GREYLOCK PARTNERS

* NEW BOARD MEMBER

STEPHEN M. JENNINGS


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BILL McCLEMENTS Senior Vice President, Corporate Operations

DUNCAN McFARLAND THE BROMLEY CHARITABLE TRUST

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VALERIE MOSLEY Chairwoman VALMO VENTURES

MERRIMACK PHARMACEUTICALS

KRISTIN MUGFORD

MARK E. NUNNELLY

JIM PALLOTTA

Senior Lecturer

Commissioner

Chairman & Managing Director

HARVARD BUSINESS SCHOOL

MA DEPARTMENT OF REVENUE

RAPTOR CAPITAL MANAGEMENT

JEFFREY C. WALKER [CHAIR]

JOHN RICE

BRIAN SPECTOR

Founder & CEO

Partner Emeritus

Chairman

MANAGEMENT LEADERSHIP

THE BAUPOST GROUP LLC

MDG HEALTH ALLIANCE

FOR TOMORROW (MLT)


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Donor Roll INVESTORS

Nancy C. and Dale Dougherty Foundation

Charles and Rebecca Ledley

American Express Foundation

Kate and Bill Duhamel

LEGO Foundation

Anonymous (6)

eBay Foundation

Matt Levin bain capital

Bank of America Charitable Foundation

ECMC Foundation Lindmor Foundation, Inc.

Deb and Steve Barnes

Paul and Sandy Edgerley

bain capital

bain capital

George Lucas Family Foundation

Josh and Anita Bekenstein

Michael and Barbara Eisenson

Lumina Foundation

bain capital

charlesbank capital partners

Bezos Family Foundation

Marjorie M. Findlay and Geoffrey T. Freeman

Tobey Maguire Innovation Fund Henry and Allison McCance

Bloomberg Philanthropies Fisher-Cummings Family Fund Blue Ridge Foundation New York

Douglas and Audrey Miller international private equity limited

Lance Fors Bromley Charitable Trust Michael and Lisa Bronner Kevin and Julie Callaghan

social venture partners international

Bill & Melinda Gates Foundation Josh and Sarah Greenhill

Valerie Mosley Kristin and Stephen Mugford Oak Foundation

berkshire partners

Alan Hassenfeld Carnegie Corporation of New York Chan Zuckerberg Initiative Randi and Larry Cohen Family Foundation

the hassenfeld foundation

Heising-Simons Foundation M. Roch Hillenbrand

James and Kim Pallotta Saul Pannell and Sally Currier Peery Foundation

the hillenbrand family foundation

Sarah Peter Howard P. Colhoun Family Foundation

Florence Koplow Poses Family Foundation

Estate of Kathryn W. Davis

Roger and Lisa Krakoff Robin Hood Foundation

Michael & Susan Dell Foundation

Jonathan and Jeannie Lavine bain capital/sankaty advisors

Doran Family Charitable Trust

Barry and Evelyn Salzberg


ANNUAL REPORT 2015 - 2016

Maurice and Luly Samuels

Tower Family Fund

Ronald Schrager and Wendy Hart

Travelers Foundation

Jeffrey Shames

Jeffrey C. and Suzanne C. Walker

Edward and Barbara Shapiro

Walmart Foundation

Siegel Family Endowment

William Morris Endeavor

Alan and Susan Solomont

Ted and Lisa Williams

Brian and Stephanie Spector

Jean and Rick Witmer

Spencer Foundation

Rhonda S. Zinner Foundation

State Street Foundation

SUPPORTERS

Peter Swift and Diana McCargo

Mark and Carolyn Ain

The Annie E. Casey Foundation

Max Ash

The Max M. and Marjorie S. Fisher Foundation

Pamela Cantor, M.D. Dan and Robin Catlin

The Grossman Family Foundation Max Nibert The Joyce Foundation Gregg Petersmeyer The Kresge Foundation PARTNERS The David & Lucile Packard Foundation The Reeder Foundation

Corporation for National and Community Service/Social Innovation Fund

The Show Me Campaign

Deloitte

The Peter and Elizabeth C. Tower Foundation

Goodwin Procter LLP

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ANNUAL REPORT 2015 - 2016

Financials New Profit 2015 Financial Information for Annual Report REVENUE BREAKDOWN Individuals and Family Foundations

14,676,853

Federal Government - Social Innovation Fund

4,623,470

Corporations and Foundations

17,921,025

Deloitte In-Kind Services

1,564,000

Other In-Kind Services

694,399

Other Income

76,141

Total Revenue:

$39,555,888

2% Other In-Kind Services

Deloitte In-Kind Services

4% Individuals and Family Foundations

45%

Corporations and Foundations

2015 REVENUE

37%

12% Federal Government -Social Innovation Fund


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EXPENSE BREAKDOWN: Grantmaking

16,615,286

Portfolio Management

7,808,452

Administration, Communications and Fundraising

3,818,787

Field Leadership

2,930,518

Deloitte In-Kind Services

1,564,000

Total Expenses:

$32,737,043

CHANGES IN NET ASSETS: $6,818,845 * ADMINISTRATIVE EXPENSES AS A PERCENTAGE OF TOTAL EXPENSES (excluding donated services) 11%

Deloitte In-Kind Services Field Leadership

* For the year ending December 31, 2015,

9%

Administration, Communications and Fundraising

New Profit had total changes in net assets

5% Grantmaking

of approximately $6.8M. New Profit had an increase in its restricted net assets of $8.8M offset by a decrease in unrestricted net assets

11%

of $2M. As of December 31, 2015,

2015 EXPENSES

51%

New Profit had approximately $42M in net assets of which $32.6M is temporarily restricted and $2.6M is unrestricted. Temporarily restricted net assets are primarily

24%

comprised of multiyear commitments, which are recorded as revenue in the year the commitment is made, and of program

Portfolio Management

restricted funds.


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ANNUAL REPORT 2015 - 2016

Portfolio Directory NEW PROFIT INNOVATION FUND

College Possible SOCIAL ENTREPRENEUR: JIM McCORKELL

College Possible makes college admission and success possible for low-income students through an intensive curriculum of coaching and support.

Educators 4 Excellence SOCIAL ENTREPRENEURS: EVAN STONE, SYDNEY MORRIS

Educators 4 Excellence works to ensure that the voices of classroom teachers are included in the decisions that affect their profession and their students.

EnLearn SOCIAL ENTREPRENEUR: JOHN MULLIN

EnLearn works to close the achievement gap by making the entire classroom ecosystem adaptive to the learning needs of each student.

Family Independence Initiative (FII) SOCIAL ENTREPRENEUR: MAURICIO LIM MILLER

The Family Independence Initiative leverages the power of information to support economic and social mobility in America. Rather than impose solutions or fixes on behalf of others, they are proving that documenting and investing in the initiative and ingenuity of low-income families and communities is the most effective way forward.

First Place for Youth SOCIAL ENTREPRENEUR: SAM COBBS

First Place helps foster youth build the skills they need to make a successful transition to self-sufficiency and responsible adulthood.

FoodCorps SOCIAL ENTREPRENEUR: CURT ELLIS

FoodCorps is creating a future in which every schools is a healthy school, and every child is well-nourished and ready to learn.

Health Leads SOCIAL ENTREPRENEUR: REBECCA ONIE

Health Leads envisions a healthcare system that addresses all patients’ basic resource needs as a standard part of quality care.

* denotes organization has graduated from the New Profit portfolio.


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Portfolio Directory Leading Educators SOCIAL ENTREPRENEUR: JONAS CHARTOCK

TM

Leading Educators works to advance teachers’ leadership skills and opportunities, building a national movement to ensure all students have the opportunity to succeed in school and life.

LEAP Innovations SOCIAL ENTREPRENEUR: PHYLISS LOCKETT

LEAP Innovations connects innovation and education to reinvent our one-size-fits-all system and transform the way kids learn.

LIFT SOCIAL ENTREPRENEUR: KIRSTEN LODAL

LIFT is dedicated to helping families break the cycle of poverty. By fostering relationships between low-income parents (members) and dedicated volunteers (advocates), LIFT helps families build the strong personal, social and financial foundations to secure immediate, critical needs and to achieve long-term goals and aspirations.

MLT SOCIAL ENTREPRENEUR: JOHN RICE

MLT equips African Americans, Latinos and Native Americans with the skills, coaching and connections they need to lead organizations and communities worldwide.

New Leaders SOCIAL ENTREPRENEUR: JEAN DESRAVINES

New Leaders prepares education leaders to deliver breakthrough results in America’s highest-need schools and advocate for policies that enable great leaders – and their students – to thrive.

Roca, Inc. SOCIAL ENTREPRENEUR: : MOLLY BALDWIN

Roca’s mission is the disrupt the cycle of incarceration and poverty by helping young people transform their lives.

Third Sector Capital Partners SOCIAL ENTREPRENEUR: GEORGE OVERHOLSER

Third Sector is re-writing the book on how governments contract social services, by funding programs that work, saving taxpayer dollars, and measurably improving the lives of people most in need.


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Portfolio Directory UnboundEd SOCIAL ENTREPRENEUR: KATE GERSON

UnboundEd is dedicated to empowering teachers by providing free, high-quality standards-aligned resources for the classroom, the opportunity for immersive training through their Institute, and the option of support through their website offerings.

NEW PROFIT WOMEN’S ACCELERATOR SOCIAL ENTREPRENEUR: ALEXANDRA BERNADOTTE All Our Kin SOCIAL ENTREPRENEUR: JESSICA SAGER

All Our Kin trains, supports and sustains community child care providers to ensure that children and families have the foundation they need to succeed in school and in life.

Beyond 12 SOCIAL ENTREPRENEUR: ALEXANDRA BERNADOTTE

Beyond 12’s mission is to dramatically increase the number of low-income, first-generation, and historically under-represented students who graduate from college.

GirlTrek SOCIAL ENTREPRENEURS: T. MORGAN DIXON, VANESSA GARRISON

GirlTrek is pioneering a health movement for African-American women and girls grounded in civil rights history and principles through walking campaigns, community leadership, and health advocacy.

Green City Force SOCIAL ENTREPRENEUR: LISBETH SHEPHERD

Green City Force’s (GCF) mission is to break the cycle of poverty, preparing urban young adults to succeed in their chosen careers by engaging them in service, training and work experiences related to the clean energy economy. In doing so, GCF encourages them to lead socially and environmentally responsible lives.

Samasource SOCIAL ENTREPRENEUR: LEILA JANAH

Samasource helps unlock opportunity for low-income people by sourcing data projects from some of the world’s largest companies. Samasource’s industry-leading services help clients achieve their business goals, while radically altering the life trajectory of workers, who earn a living wage and lift themselves out of poverty.

The Young People’s Project SOCIAL ENTREPRENEUR: MAISAH MOSES

The Young People’s Project uses Math Literacy Work to develop the abilities of elementary through high school students to succeed in school and in life, and in doing so involves them in efforts to eliminate institutional obstacles to their success.

* denotes organization has graduated from the New Profit portfolio.


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Portfolio Directory Braven SOCIAL ENTREPRENEUR: AIMEE EUBANKS-DAVIS

Braven partners with education institutions, volunteer professionals, and employers to offer a rigorous and relevant career readiness course, followed by robust campus-based alumni programming. From The Braven Accelerator will come a generation of leaders as diverse as our future demands.

Code2040 SOCIAL ENTREPRENEUR: LAURA WEIDMAN POWERS

Code2040 creates access, awareness, and opportunities for top Black and Latino/a engineering talent to ensure their leadership in the innovation economy. Code2040 aims to ensure that by the year 2040 – when the US will be majority-minority – Blacks and Latino/as are proportionally represented in America’s innovation economy as technologists, investors, though leaders, and entrepreneurs.

Found in Translation SOCIAL ENTREPRENEUR: MARIA VERTKIN

Found in Translation aims to help homeless and low-income multilingual women to achieve economic security through the use of their language skills, and to reduce ethnic, racial, and linguistic disparities in healthcare by unleashing bilingual talent into the workforce.

LaborX (Sponsored by the Solidago Foundation) SOCIAL ENTREPRENEUR: YSCAIRA JIMENEZ

LaborX seeks to create a pathway out of poverty for young people without college degrees by offering mobile phone job training and employment matching services.

Neighborhood Trust Financial Partners SOCIAL ENTREPRENEUR: JUSTINE ZINKIN

Neighborhood Trust Financial Partners seeks to institutionalize financial education as a fundamental component of economic development initiatives-and to promote an action-oriented model which includes financial products and services sensitive to nontraditional financial behavior of marginalized communities.

SIRUM SOCIAL ENTREPRENEUR: KIAH WILLIAMS

SIRUM aims to save people’s lives by allowing health facilities, manufacturers, wholesalers, and pharmacies to donate unused medicine rather than destroy it.

The New American Leaders Project SOCIAL ENTREPRENEUR: SAYU BHOJWANI

The New American Leaders Project seeks to create a more inclusive democracy by preparing first and second generation Americans to use their power and potential in elected office.


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Portfolio Directory The Workers Lab SOCIAL ENTREPRENEUR: CARMEN ROJAS

Through investing in entrepreneurs, community organizers, technologists, economic justice organizations, issue campaigns, and businesses, The Workers Lab seeks to create scalable and self-sustaining solutions that improve conditions for low-wage workers.

EARLY LEARNING FUND

SOCIAL ENTREPRENEUR: ALEXANDRA BERNADOTTE Acelero Learning SOCIAL ENTREPRENEUR: HENRY WILDE

Acelero Learning’s mission is to bring a relentless focus on positive family and child outcomes to close the achievement gap and build a better future for children, families, and communities served by the Head Start program.

AVANCE SOCIAL ENTREPRENEUR: RICHARD NORIEGA

AVANCE unlocks America’s potential by strengthening families in at-risk communities through effective parent education and support programs.

PATHWAYS FUND

College Advising Corps SOCIAL ENTREPRENEUR: NICOLE HURD

College Advising Corps works to increase the number of first-generation college, and underrepresented high school students who enter and complete higher education.

College Summit SOCIAL ENTREPRENEUR: JO SMITH

College Summit transforms the lives of low-income youth by connecting them to college and career.

iMentor SOCIAL ENTREPRENEUR: MIKE O’BRIEN

iMentor matches every student in their high schools with a committed college-educated mentor, equipped to guide that young person on their journey to college graduation.

Single Stop CEO: CHRISTY REEVES

Single Stop harnesses America’s most effective anti-poverty tools to create economic mobility for low-income families and individuals. * denotes organization has graduated from the New Profit portfolio.


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Portfolio Directory Year Up SOCIAL ENTREPRENEUR: GERALD CHERTAVIAN

Year Up empowers low-income young adults to go from poverty to professional careers in a single year.

YouthBuildUSA SOCIAL ENTREPRENEUR: DOROTHY STONEMAN

YouthBuildUSA’s mission is to unleash the intelligence and positive energy of low-income young people to rebuild their communities and their lives.

REIMAGINE LEARNING FUND

Achievement Network (ANet) SOCIAL ENTREPRENEUR: MORA SEGAL

Achievement Network works alongside school leadership teams to strengthen their school-wide practice and culture of using learning standards and achievement data to get breakthrough results for students in underserved communities.

City Connects SOCIAL ENTREPRENEUR: MARY WALSH

City Connects takes a systematic, high-impact, cost-effective approach to addressing the out-of-school factors that limit learning. The support they offer makes a significant impact on students – now, and years from now.

City Year SOCIAL ENTREPRENEUR: JIM BALFANZ

City Year works to bridge the gap in high-poverty communities between the support that students actually need, and what their schools are designed and resourced to provide. In doing so, they are helping to increase graduation rates across the country, and changing the lives of the students they serve.

Eye to Eye SOCIAL ENTREPRENEUR: DAVID FLINK

Eye to Eye’s mission is to improve the life of every person with a learning disability. Eye to Eye fulfills their mission by supporting and growing a network of youth mentoring programs run by and for those with learning differences, and by organizing advocates to support the full inclusion of people with learning disabilities and ADHD in all aspects of society.

New Classrooms SOCIAL ENTREPRENEUR: JOEL ROSE

New Classrooms works to create a world where personalized learning is just the way students learn – a world where every student attends a school that meets them where they are, adapts to the unique ways they learn, and develops habits for lifelong success.


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Portfolio Directory New Teacher Center SOCIAL ENTREPRENEUR: ELLEN MOIR

New Teacher Center’s work is focused on accelerating the effectiveness of teachers and school leaders so that students achieve more.

Peace First SOCIAL ENTREPRENEUR: ERIC DAWSON

Peace First exists to create the next generation of peacemakers. Peace First views children as natural problem solvers and creative thinkers, and invests in their ability to see themselves as leaders.

PowerMyLearning SOCIAL ENTREPRENEUR: ELISABETH STOCK

PowerMyLearning envisions a world in which all children will be able to power their learning through a combination of technology and the people who matter most to their success – teachers and parents.

Turnaround for Children SOCIAL ENTREPRENEUR: Dr. PAMELA CANTOR

Turnaround for Children translates neuroscientific research into tools and strategies for schools with high concentrations of students impacted by adversity, in order to accelerate healthy development and academic achievement.

REIMAGINE SCHOOL SYSTEMS FUND

Innovate Public Schools SOCIAL ENTREPRENEUR: MATT HAMMER

Innovate Public School’s mission is to build the parent and community demand for world-class public schools, and to accelerate the growth of these schools, particularly for low-income students and students of color.

m EDUCATION

Match Education SOCIAL ENTREPRENEUR: STIG LESCHLY

Match Education is an engine of discovery and applied innovation in education. They operate high-performing urban public charter schools, a unique graduate school of education that trains teachers for high-poverty schools, and a hybrid college and jobs program that seeks unprecedented degree completion rates and employment outcomes.

LEARN TO EARN FUND

Match Beyond SOCIAL ENTREPRENEUR: STIG LESCHLY

EDUCATION Match Beyond is a college and jobs program that helps young adults get a degree and a good job.

* denotes organization has graduated from the New Profit portfolio.


“In the face of rising tides of isolationism bigotry, and economic disenfranchisement, the work that brings all of us in the New Profit community together feels more important than ever. The path to a better future begins with ensuring that today’s children are gaining the competencies, values, awareness, and sense of agency to navigate a turbulent economy and solve increasingly complex global problems with empathy and compassion.In such perilous times, I feel so grateful for all that New Profit is doing to reimagine education and ensure that all of our country’s children have the education, support and opportunity to shape a better future for themselves and all of us.” - WENDY KOPP CEO and Co-Founder, TEACH FOR ALL

200 Clarendon Street Boston, MA 02116 info@newprofit.org www.newprofit.org ANNUAL REPORT 2015 - 2016 Written and Produced by New Profit Designed by Hiker www.hikercompany.com


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