Our Approach to Philanthropy
Our approach to philanthropy is at the nexus of two chief challenges of the social sector: the challenge of practicing effective philanthropy and the challenge of scaling high-impact social innovations.
Practicing Effective Philanthropy
Individual donors often tell us that ensuring their philanthropy is aimed at organizations delivering the highest possible impact is difficult and time consuming. With limited time to devote to selecting organizations to support, many individuals find that their giving is unsystematic and lacks focus. Evaluating the impact of charitable donations can be an even more daunting task, leaving those with the means to make an impact on social problems at a loss as to how to be most effective.
Scaling Social Innovations
The vast majority of nonprofit organizations in the United States struggle to reach meaningful scale, limiting their ability to operate most efficiently and realize their full potential for impact. Ninety-four percent of nonprofit organizations generate less than $1 million in annual revenue.* Funding in the social sector is fragmented and often restricted to programmatic costs, a reality that overlooks an organization's essential need for unrestricted funds with which to grow operations.
At the intersection of these challenges, New Profit unites the needs of philanthropists and social entrepreneurs to maximize impact on the critical social issues facing our country.
At the heart of our approach is our belief that powerful solutions to our nation's pressing social problems already exist. We believe that the characteristics embodied by social entrepreneursincluding their ability to articulate a visionary path to connect their organization's direct work to solving the systemic causes of the problem, and their talent for integrating data rapidly to make tough choices that drive operational performancemake them well-suited to the challenging work of turning around persistent social problems.
New Profit's portfolio organizations typically work in education, workforce development, public health, and other areas. By identifying these proven solutions and pairing them with significant unrestricted grants and strategic advice and support, we equip social entrepreneurs and their organizations with the resources and knowledge needed to scale their innovations and fundamentally transform the lives of children, families, and our communities in America.
To realize this vision, New Profit raises financial capital by way of the charitable donations of a small community of individuals and family foundations. We then pool these resources and reallocate them in the form of large, unrestricted, multi-year grants to a portfolio of national nonprofit organizations working to promote social mobility for low-income Americans.
Our approach offers a way for dedicated, results-driven philanthropists to direct their dollars toward a vetted group of top-performing nonprofit organizations, whose growth and impact are in turn guided and enhanced by the strategic support of our internal portfolio management team. By partnering with New Profit, donors overcome the hurdles of practicing effective philanthropy.
*Calculated from figures released on www.irs.gov
Injustice anywhere is a threat to justice everywhere. We are caught in an inescapable network of mutuality, tied to a single garment of destiny. Whatever affects one directly, affects all indirectly.
Dr. Martin Luther King, Jr.