Our approach to portfolio management gets results. New Profit portfolio organizations are among the fastest growing and highest impact nonprofits in the sector, consistently outperforming other high-performance organizations and groups.
We approach measurement across two key areas—impact and performance—for both individual organizations and our entire active investment portfolio. Specifically we track growth in lives touched and revenue, which act as a proxy for both performance and social impact, for each of our portfolio organizations. Through our work, we have observed that growth in revenue and lives touched can drive increased program quality as organizations invest in strategy development, capacity for execution, and talent. In addition, we track specific program quality metrics for each organization, and assess each organization's ability to effectively and efficiently deliver their intended impact.
2011 Impact and Results
In 2010, performance of the current portfolio exceeded growth targets, realizing a 41 percent CAGR for revenue and a 40 percent CAGR for lives touched.