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learn: Scale & Growth

Leading social entrepreneurs agree that scale is the most significant hurdle to overcome on the road to creating transformative social change. More than 1.8 million nonprofits exist in the United States alone, many of which are focused on alleviating social problems and inequities. Yet, the social impact of many of these organizations is limited by their sub-optimal growth. Since 1971, only 21 direct-service nonprofits have reached the $20 million revenue mark.

New Profit believes that the benefits of scale are essential levers in addressing profound social problems. With scale organizations can:

  • Achieve significant quality improvement
  • Attract world-class talent
  • Reduce cost per person served
  • Measure results and prove impact
  • Build a nationally recognized brand
  • Secure significant, predictable resources from the public, private, and philanthropic sectors
  • Develop and implement a strategy for continued growth and sustainability
  • Shape larger public policy change

Working with social entrepreneurs from our portfolio, strategic partners and our investors, New Profit identifies and tests ideas and tools for scaling nonprofit organizations and their impact. We help guide organizations through the most difficult phases of growth and expansion, supporting their efforts to overcome persistent barriers to scale. Among these barriers are the absence of a capital market for social innovation, a weak talent pipeline in the nonprofit sector, and an underdeveloped capacity to activate or leverage networks. For a more detailed exploration of how we support portfolio organizations, please see the New Profit report, Citizen Schools’ Growth with High-Engagement Funders.

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