Social Venture Philanthropists Seek High-Growth Nonprofit:

Plans and Metrics Preferred

9.8.11

Dennis Cavner, Innovation+Lisa Fielder, College Forward

Social Entrepreneurship Landscape

• The Social Sector Climate Increasing Need Diminishing Resources

• In times of economic dislocation, both human and financial capital flow to ideas that present the greatest opportunity for real impact

• Fundamental change in the mobilization of resources on a national scale

• Scarcity or opportunity?

The Development of Innovation +

• Experience with high-growth organizations

• Go to the nonprofits – ask them what they need:Growth capital Human capital Mindshare of smart people who care

• Models in the for-profit world Venture capitalGrowth equity Investment banking

Selection Criteria

• Innovation

• Proven impact

• Scalable model

• Leadership

• Sustainable funding model

• Key partnerships

1 Focus

1 Emphasis: Metrics

1 Goal: Bachelor’s Degrees

College Forward

“Do your little bit of good where you are; it's those little bits of good put together that overwhelm the world.”

Mission, Focus, and Goal

College Forward provides college access and college persistence services to motivated, economically disadvantaged students, in order to facilitate their transition to college and make the process exciting and rewarding.

— Desmond Tutu

Organizational Will

”If you only do what you know you can do – you never do very much.”

Growth is part of our DNA

Since 2003:

9800% growth in student enrollment

2600% growth in revenues

1250% growth in staff

82% reduction in per-student cost

— Tom Krause

Theories of

Change promote

unity and

commitment

Student Enrollment

0

500

1000

1500

2000

2500

3000

2004 2005 2006 2007 2008 2009 2010 2011

Tota

l Stu

den

t P

op

ula

tio

n

CoFo New Student Enrollment, 2004-2011

Annual Revenues

$-

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

2004 2005 2006 2007 2008 2009 2010 2011 2012 (est.)

CoFo Annual Revenues

Cost Per Student

$-

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

2004 2005 2006 2007 2008 2009 2010 2011

Tota

l Co

st/S

tud

ent

CoFo Per-Student Cost

Student Success Metrics

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

200520062007200820092010 2011

Continuation

Acceptance

Start With the End in Mind

Community Partners

IMPACT

Education

Health Care

Culture

Environment

Social

Real Changein Lives

Time$

Process

Identify Candidates Evaluate & Select Mobilize ResourcesExecute, Monitor, &

Report

Identify Candidates

Candidate

Scout

Scout

Scout

Innovation Impact LeadershipFunding Model

Key Partnerships

Evaluate & Select

Candidates

Finalists

Due Diligence

Legal

Governance

Human Resources

Organizational Planning

Program Evaluation

Site Visits

Growth Plan Evaluation

Program Services/Impact

Innovation

Market

Competition/Collaboration

Mode of Growth

Funding Model

Barriers to Growth

Leadership

Resources Required

Role of Innovation +

Selection Partner

Strategic Growth Volunteer, 18 months

2 Dedicated Staff Members, 12 months

Strategic Growth Committee, 18 months

Strategic Partners

Planning for Growth

”If we’re growing, we’re always going to be out of our comfort zone.”

Focus on sustainability and diversification

— John Maxwell

Innovation +

“Take time to deliberate, but when the time for action has arrived, stop thinking and go in.”

Like drinking from a firehose…

2+ people, 3 months, 16-hour days

Complete business plan

Supporting attachments

Due diligence documents

Compelling presentation

—Napoleon Bonaparte,as quoted by Andrew Jackson

Clear, realistic plans, clearly articulated

Professional document

High-level advice

Exposure

Experience

The Big Win

“Kites rise highest against the wind, not with it.”

A “No-Lose” proposition

— Winston Churchill

Mobilize Resources

Financial Capital

Term: 3-5 Years

Total: <$1M - $5M

Sources:

Individuals

Family Foundations

Corporate Foundations

Funded Directly to Community Partner

Joint Efforts with Community Partner

Human Capital

Mind Share

Networking

Legal/Financial

Technology

Marketing/Communications

Domain Expertise

Execute, Monitor, & Report

• Implement Strategy

• Adjust Procedures

• Board Participation

• Periodic Progress

• Identify Obstacles

Guiding Principles

• Mission First• Maintain the Culture• Highest Quality• Build the Brand• High Level of Communication• Diversify• Diversity• Develop models that can be replicated and scaled• Be Nimble / Entrepreneurial• Say NO – avoid opportunities outside our plan• Decisions based on market research• Build a strong governance model

Earned Income Strategies

Organic Growth – new cities

Strengthen the Brand

Expand services

The Future: Growth!

“I did not have implants, I just had a growth spurt.”

— Britney

Spears

1.4 million low-income high school juniors qualify for CoFo services every year.

Projected Student Enrollment

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

2010 2015 2020 2025

Cum

ula

tive E

nro

llment

Projected Bachelor’s Degrees

0

1000

2000

3000

4000

5000

6000

2010 2015 2020 2025

Learn to work in harness—responsibly and responsively

Develop organizational capacity to “think beyond the box”

Maintain highest quality organization and services

Cope with change

Preserve the culture

Succession planning

Grow exponentially!

Challenges Ahead

“When you're finished changing, you're finished.”

—Benjamin Franklin

Questions?

College Forward is grateful for the opportunity to learn and grow alongside our Innovation + partners.

Together, we really will effect REAL CHANGE in REAL LIVES!