Annual Report 2022

Dear
New Profit
community,

As we take stock of everything this community achieved over the past year, we are filled with gratitude … for the social entrepreneurs who are shifting the systems in this country through their brilliance, vision, and determination; for our investors and partners who remain committed to building an America that provides opportunity for all; for our staff who dedicate their days to deepening our impact, taking a learning stance, and never settling for “good enough”; and for all of you who have joined in our community to make this work possible.

The pages that follow tell a story about what’s possible when we come together, find common ground, and honor our interdependence. They show a community driving transformational change in education, economic mobility, democracy, and beyond. They introduce you to the bold leaders who are close to — and guided by — the genius of the communities they serve, and explore the collaborations at the heart of it all. And they point to a pattern of exponential growth and deepening impact that reflects the magnitude of the moment we are in.

Between the lines, our community is navigating big questions as we look ahead to major milestones, including New Profit’s 25th anniversary in 2023 and America’s 250th anniversary in 2026.

What role can this community play in building an alternative to the fear and fragmentation that threatens progress in America? Where do we stand in our collective efforts to shift power and resource flows in philanthropy, and where do we go from here? How can we power an American Evolution that makes good on our country’s greatest possibilities?

These questions are always in the room with us. They guided our work together at New Profit’s annual convening, The Well, which relaunched this autumn with a new name to reflect its renewed purpose — to reconnect and replenish our community’s bonds, and cultivate a multiracial, intergenerational, cross-sector coalition strong enough to achieve transformational change. Earlier this year, in conversation with Tulaine, Dr. Vivek Murthy, the U.S. Surgeon General, spoke pointedly about the value of interconnectedness:

“As painful as these two years have been, there are certain windows it has opened for us, and one of them I think is a greater willingness that people have in America right now to have a conversation about community and how we rebuild it; a greater recognition, if you will, that our relationships with each other actually do matter a lot. They’re not just a ‘nice to have,’ they are necessary to have.”

In that vein, we hope you will join us in community, and get closer to each other as well as the leaders, problem-solvers, and solutions that we get behind. As we look ahead to New Profit’s 25th anniversary next year, we are looking forward to more opportunities to come together in person and online to learn and grow, commit to concrete action, celebrate impact, and fortify our community for the path ahead.

Warmly,
Tulaine Montgomery & Vanessa Kirsch
CO-CEOS OF NEW PROFIT

2022 Highlights

8

New Build investments

48

New Catalyze investments

5

Catalyze cohorts (3 new)

2

New board members

Kerwin Charles & Deborah Quazzo

56

New portfolio organizations (48 Catalyze and 8 Build)

96% of new Catalyze organizations and
83% of new Build organizations are led by people of color

9

multi-day Catalyze in-person convenings

and 8 virtual sessions

47

hours of staff professional development

including 3 learning weeks

25

field leadership speaking engagements at major conferences and events

8

New Build investments

48

New Catalyze investments

5

Catalyze cohorts (3 new)

2

New board members

Kerwin Charles & Deborah Quazzo

56

New portfolio organizations (48 Catalyze and 8 Build)

96% of new Catalyze organizations and
83% of new Build organizations are led by people of color

9

multi-day Catalyze in-person convenings

and 8 virtual sessions

47

hours of staff professional development

including 3 learning weeks

25

field leadership speaking engagements at major conferences and events

Year in Review

feb 2022

New Profit announced the addition of Kerwin Charles and Deborah Quazzo to our Board of Directors, joining a group of dedicated changemakers helping to guide New Profit and add to the diverse experience of a board that includes social entrepreneurs, management consultants, investment professionals, academics, and foundation executives.

Portfolio Investing

New Profit’s portfolio strategy and support model center equity and proximity. We are committed to meeting the expressed needs of our portfolio organizations and to reducing asymmetry between funder and grantee.

Over the last five years, New Profit has strategically shifted the composition of our portfolio to invest in significantly more leaders of color—particularly women of color—and broaden our issue areas, invest in more systems-first organizations, and markedly grow the number or organizations we serve at both the Build and Catalyze levels.

Evolution of New Profit’s portfolio 2017-2022

Elevating Proximity

We significantly shifted our portfolio’s composition from a majority of white-led organizations(79%) serving communities of colorto a majority of leaders of color (82%) whose identities and practices center proximity to communities served.

Building Pipelines

We grew the number of our Catalyze (pre-mezzanine stage) organizations from 1 cohort of 8 deals to 7 cohorts of 56 deals; our Build portfolio investing accelerated from a high of 8 new deals per year to 13 new deals - with a robust “waiting list”.

Investing in Key Issue Areas

We rebalanced our portfolio in terms of key issue areas, shifting from a large focus on K-12 education to a more diversified portfolio with 50% of investments supporting economic mobility and democracy building.

Supporting Systems Change efforts

We increased the portion of portfolio organizations whose primary focus is intervening at the systems level, from 13% to 27%.

Insights

A need to build a pipeline for the sector—and for ourselves…
The need to invest in key issue areas for our country and communities…
A lack of investment in—and a great need for—systems-focused models…
Elevating proximity as expertise…

Geography and Concentration of Our Portfolio Organizations

Portfolio Spotlights

Kingmakers of Oakland

This summer, we traveled to the Bay Area to learn more about Chris Chatmon, CEO and Co-Founder of Kingmakers of Oakland, and his origin story. Kingmakers of Oakland (KOO) is a community collective of extraordinary people who are…

4.0

Hassan Hassan has found a sense of joy in belonging as an immigrant leader acting as a bridge between two cultures. 4.0 invests in community-centered models of education, providing coaching, curriculum, community, and cash to those…

Catalyze Social Entrepreneurs

Througout 2022, leaders across our Catalyze cohorts shared stories in their own words—what drives them, pieces of their work that are often overlooked, and the power of the communities they are advancing. Get closer to some of these leaders…

Key Findings from our Compensation Study

New Profit is pleased to share a selection of findings* from our Compensation Study Report, which compiles data from 43 current and alumni organizations that received either Build (mid-stage) or Catalyze (early-stage) investments from New Profit. The study aimed to shed light on frequently asked questions from other social entrepreneurs such as:

  • What is a competitive salary if we are recruiting for a new senior team member?
  • How should we measure pay equity if we want to operationalize equity in our compensation philosophy?
  • What are promising practices in compensation equity?

The contents of this report offer increased visibility across the sector to help organizations allocate their resources equitably and effectively. While other industry compensation reports exist, many focus on a limited scope (a particular state, organization size, etc.) and/or may cost hundreds of dollars per copy.

HIGHLIGHTS
  • Amina Fahmy Casewit and Molly O’Donnell, both Partners and longtime New Profit employees, were promoted to co-lead the organization’s Portfolio team and serve on the New Profit Leadership team. As co-leads of the Portfolio team, Amina and Molly oversee the vision, strategy, and management of New Profit’s investing and strategic support for social entrepreneurs. Amina primarily leads New Profit’s Build Investments; Molly primarily leads Catalyze Investments.
  • We invested in eight new Build organizations and are on our way to close 2022 with the largest number of new Build investments made in a single year. Avance, Cara Collective, CodePath, Girls Leadership, Inner City Computer Stars Foundation (i.c.stars), Project Basta, and The Knowledge House joined our second set of Postsecondary Innovation for Equity (PIE 2) investments. Each is focusing on creating access to postsecondary and career opportunities for young people from under-resourced communities across the country. Additionally, we made one Build investment in the area of Education —BARR Center.
  • Five outstanding Build organizations exited our portfolio. Deals completing their terms with New Profit spanned a number of issue areas including civic engagement (PushBlack), education (EdLoC and LEAP Innovations), and economic mobility (GirlTrek and The Health Initiative).
  • Through our Impact Compass, we have aligned on a set of core beliefs for our portfolio work:
    • Lasting social change is only possible if the conditions which hold social problems in place are shifted to produce equitable outcomes.
    • Solutions to structural challenges require proximate leadership and organizations.
    • Our beliefs in equity and systems change require us to hold a more flexible perspective on the paths organizations take toward change and not focus on a singular destination by the end of our investment.
    • Philanthropy is more powerful when funders listen to social entrepreneurs.
    • We are learning on many fronts and commit to a stance of humility, feedback, and investing in our continuous evolution.
Portfolio stats
16.4M lives touched
46 states, the District of Columbia, and Puerto Rico were served by our Build portfolio
12.3% median 3-year CAGR
71.4% of Build investments reported a year-over-year increase in beneficiaries served
Financial Growth & Sustainability
53.0% average growth rate of organization’s budget
23.9% median 3-year expenses CAGR
52.9% of organizations reported annual expense growth rate of over 20% through New Profit’s investment period

We set the table so that more people have a seat at the table when it comes to building the future of education. We want to see founders who look like you and me, building new schools, new educational programs, that meet the needs of the families in their community. We want to see funders write checks with better terms and based on trust with the founders that they’re supporting. We want to see facilitators manage and allocate resources equitably. And most importantly, we want to see families driving the innovation agenda. We want to see families being the ones who tell the rest of the ecosystem what is working and what is not so we can keep building together.

Hassan Hassan
CEO of 4.0

Build Social Entrepreneurs

Build investments are $1M+ multi-year, unrestricted grants that come with deep strategic support and a dedicated New Profit Deal Partner who serves as a trusted advisor to the social entrepreneurs and as a member of the organization’s board of directors.

Hassan Hassan

4.0

Hassan Hassan

Angie Jerebek

BARR Center

Angie Jerebek

Alexandra Bernadotte

Beyond 12

Alexandra Bernadotte

Aimée Eubanks Davis

Braven

Aimée Eubanks Davis

Kathleen St. Louis Caliento

Cara Collective

Kathleen St. Louis Caliento

Dr. Aaliyah A. Samuel

CASEL

Dr. Aaliyah A. Samuel

Michael Ellison

CodePath

Michael Ellison

Sharhonda Bossier

Education Leaders of Color (EdLoC)

Sharhonda Bossier

Jillian Juman

Envision Education

Jillian Juman

Eddie Lincoln

Equal Opportunity Schools

Eddie Lincoln

T. Morgan Dixon and Vanessa Garrison

GirlTrek

T. Morgan Dixon and Vanessa Garrison

Sandee Kastrul

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

Sandee Kastrul

Emily Freitag

Instruction Partners

Emily Freitag

Chris Chatmon

Kingmakers of Oakland

Chris Chatmon

Jerelyn Rodriguez

The Knowledge House

Jerelyn Rodriguez

Phyllis Lockett

LEAP Innovations

Phyllis Lockett

Arun Ramanathan

Pivot Learning

Arun Ramanathan

Sheila Sarem

Project Basta

Sheila Sarem

Julian Walker

PushBlack

Julian Walker

Alan Safran & AJ Gutierrez

Saga Education

Alan Safran & AJ Gutierrez

Alejandro Gibes de Gac

Springboard Collaborative

Alejandro Gibes de Gac

Rebecca Onie & Rocco Perla

The Health Initiative

Rebecca Onie & Rocco Perla

Sixto Cancel

Think of Us

Sixto Cancel

Veronica Nolan (Interim CEO)

Urban Alliance

Veronica Nolan (Interim CEO)

Shalinee Sharma

Zearn

Shalinee Sharma

Ecosystem Building

Social and systemic change requires a multiracial, intergenerational, cross-sector coalition. New Profit’s ecosystem-building initiatives bring together social entrepreneurs, philanthropists, community members, corporate leaders, policymakers, and other stakeholders to transform how we collectively pursue social change. By grounding ourselves in community insights, we can move toward concrete action in ways that enable all people to thrive.

The MIC

Transformational change in any system requires coordinated action toward a shared vision by ecosystem actors across lines of difference, including identity, geography, age, role, and sector. In that vein, New Profit is working to bring together a multiracial, intergenerational, cross-sector coalition—the MIC—that can drive transformational change and create opportunity for all. New Profit’s ecosystem building work leverages the insights, expertise, and ideas of a broad range of actors to influence how policies are shaped, how resources flow to the sector, how barriers are removed, and how social impact leaders can come together to create change.

Ecosystem Building In Action

America Forward

New Profit’s DC-Based Nonpartisan Policy Initiative

Since 2008, America Forward has advanced a federal public policy agenda that centers equity, fosters innovation, rewards results, and catalyzes cross-sector partnerships. America Forward leads a Coalition of over 100 social innovation organizations that champion innovative, effective, and efficient solutions to our country's most pressing social problems.

This year, America Forward provided 14 Advocacy Institute trainings to 300+ participants and led the Coalition in successful collective advocacy efforts on Capitol Hill.

The Well

Purposefully scheduled after midterm elections, The Well brought together social entrepreneurs, philanthropists, and other social impact leaders to take stock and lay the groundwork to collectively strengthen our nation as we approach America’s 250th birthday in 2026.

ECSO

New Profit’s Early Childhood Support Organizations (ECSO) initiative is actively engaged in a four-year, $20M public-private partnership between New Profit and the Commonwealth of Massachusetts Department of Early Education and Care (EEC). The initiative provides leader and educator development and curriculum coaching to support better outcomes for low-income children who are enrolled in Head Start and subsidized child care programs.

The ECSO initiative will serve as a national model. New Profit’s grant funding helps ECSOs make initial investments to scale their models in Massachusetts and strategic support helps to facilitate ongoing...

Parent Powered

In a moment when education in this country is hyper-politicized, parent voice is being used as a political tool. However, across the political spectrum voices from BIPOC communities are rarely being heard.

This year, New Profit partnered with several parent-focused organizations including Kids First Chicago and DC PAVE to develop a multimedia content campaign with real parents voicing their stories, with illustration and simple animation bringing those stories to life. The campaign, Parent PowerED, highlights three critical K-12 education issues that...

Advancing Ideas

By investing in over 200 social enterprises since its founding, New Profit has amassed a wealth of knowledge about long-standing and emerging trends across a variety of systems and sectors. Furthering systemic change requires disseminating these learnings, often in partnership with one or more social entrepreneurs in our portfolio. A key driver of our impact is advancing ideas, which, in addition to informing our investment selections and strategy, supports broader systemic change.

Insights

Proximate leaders—those who are closest to the problem and are meaningfully guided by the expertise, needs, assets, and experiences of their communities—bring unique expertise and drive the most sustainable solutions. Funders have historically under-invested in proximate entrepreneurs and organizations. Though we don’t have an ideal portfolio composition, we have prioritized funding Black, Latinx, and Indigenous leaders in recent investments.

Leadership & Donors

Doug Borchard

Doug Borchard

Managing Partner,
Chief Operating Officer

Trevor Brown

Trevor Brown

Senior Partner

Shawn Dove

Shawn Dove

Managing Partner

Amina Fahmy Casewit

Amina Fahmy Casewit

Lead Partner,
Portfolio Investing

Eliza Greenberg

Eliza Greenberg

Managing Partner

Kevin Greer

Kevin Greer

Partner,
Chief Administrative Officer

Sam Hiersteiner

Sam Hiersteiner

Managing Partner,
Communications and Corporate Partnerships

Vanessa Kirsch

Vanessa Kirsch

Founder & Co-CEO

Ian Magee

Ian Magee

Managing Partner,
Chief Financial Officer

Abby Marquand

Abby Marquand

Partner,
Economic Mobility

Tulaine Montgomery

Tulaine Montgomery

Co-CEO

Molly O’Donnell

Molly O’Donnell

Lead Partner,
Portfolio Investing

Elizabeth Perlmutter

Elizabeth Perlmutter

Partner,
Investor Relations

Shruti Sehra

Shruti Sehra

Managing Partner,
Education Portfolio

Deborah Smolover

Deborah Smolover

Managing Partner/Executive Director,
America Forward

Strategic Collaborations

Since 2013, Deloitte and New Profit have collaborated to provide social impact organizations with the caliber of strategic support that is typically only accessible to Fortune 500 companies. In addition to strategy work, the power of our cross-sector collaboration has led to tremendous learning for each organization, and ultimately for those we work with.

Deloitte is driving ecosystem impact for New Profit social entrepreneurs, and beyond, by creating and disseminating thought leadership for the field and through convenings, including The Well.

Our collaboration also draws on Deloitte’s broader capabilities, including digital crowdsourcing of innovative ideas and data-rich research, which contribute to sector thinking and conversations on topics such as the future of work and health equity.

Each year, Deloitte consultants and New Profit team members work together to lead pro bono strategy projects for a set of New Profit portfolio organizations. Working in partnership with the leadership teams, we help our grantee-partners pursue impact at scale by engaging in projects focused on leadership and board development, monitoring and evaluation, financial sustainability, impact modeling, and growth strategy. To date, Deloitte and New Profit have collaborated to lead pro bono strategy projects to scale the impact of nearly 50 New Profit portfolio organizations that collectively reach millions of people across America.

This spring, New Profit and Deloitte’s Health Equity Institute (DHEI) collaborated to launch our first Health Equity Catalyze Cohort. DHEI is a data-driven community investment and knowledge development organization that advances health equity as an outcome through pro bono programs, philanthropy, and cross-industry collaborations. “At DHEI, we believe health and health equity extends well beyond clinical care and health services,” said Jay Bhatt, Executive Director of DHEI and Deloitte Center for Health Solutions. “Our efforts to advance health equity have to address the root causes of inequitable health outcomes and support the leaders on the ground championing innovative solutions, and our work with New Profit is focused on doing just that.”

This collaboration is built upon fifteen years of similar pioneering work done with the Monitor Group, which Deloitte acquired in 2013. In 2018, Deloitte announced a continuation and expansion of our collaboration over three years, which included providing $6.6M in pro bono strategy services to New Profit’s grantee partners to help them create transformational impact.

Financials

64%
Corporations and
Foundations
33%
Individuals and
Family Foundations
3%
In-Kind Services
64%
Corporations and Foundations
33%
Individuals and Family Foundations
3%
In-Kind Services

Revenue Breakdown

Corporations and Foundations
$51.0M
In-Kind Services
$2.4M
Program Fees and Other Misc.
$0.1M
Individuals and Family Foundations
$25.9M
TOTAL REVENUE
$79.3M

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

Net Assets

CHANGE IN NET ASSETS
$49.5M
Change in purpose-restricted
$36.5M
Change in time-restricted
($4.2M)
Change in unrestricted
$17.2M
TOTAL NET ASSETS
$112.9M
Purpose-restricted
$75.8M
Time-restricted
$11.8M
Unrestricted
$25.4M

Expense Breakdown

IMPACT PROGRAMMING: $23.8M

PORTFOLIO INVESTING


Portfolio Grants

Grantee Support

Deloitte Pro Bono

Select Donor Supported Initiatives

$20.6M

ECOSYSTEM BUILDING


America Forward

Convenings

Field Building

$3.2M

NEW PROFIT INFRASTRUCTURE


Administration

Development

Communications

Legal/Strategy Pro Bono

$6.1M
TOTAL EXPENSES = $29.9M

Numbers may not add due to rounding.
The figures included in the above graphics and table are based on
the audited financial statements for CY2021.