Investing in Human Capital: What We’ve Learned

The Philanthropy RoundtableBoston, MASeptember 11, 2008

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NewSchools’ Mission: Transforming Public Education

To transform public education through powerful ideas and passionate entrepreneurs so that all children –especially those underserved – have the opportunity to succeed in the 21st century.

Identify the most promising education entrepreneurs

Use engaged venture philanthropy to help build early-stage, high-impact education organizations

Develop networks of thought leaders across the business, education, nonprofit, and policy communities in order to help our ventures succeed and create leverage for broader systemic change

Theory of Change

$500B in K-12 Public Education Spending

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Teacher Attrition

17% of all teachers leave their jobs each year

25-33% of new teachers leave within 3 years

40-50% of new teachers leave within 5 years

Teacher attrition rates have increased by 50% in the past 15 years

Teachers with the highest scores on certification tests are twice as likely to leave as those with the lowest scores

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Reasons Why Teachers Leave

5 Source: U.S. National Center for Education Statistics (2004-05)

NOTE: respondents could choose more than one reason, so percentages add up to more than 100%

Distribution of Out-of-Field Teachers

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Human Capital Value Chain

Evaluate& Retain with

Accountability

Evaluate& Retain with

Accountability

Induct,Support

& Develop

Induct,Support

& Develop

Prepare & CredentialPrepare & Credential

Recruit & Place

Recruit & Place

•Teach for America•The New Teacher Project•New Leaders for New Schools

•KIPP Fisher Fellowship•High Tech High Graduate School of Education•AUSL teacher residency

•The New Teacher Ctr.

•Teacher Advancement Program•RISE

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Distribution of National Investments

Source: NewSchools Venture Fund, survey of 13 large foundations

Number of Grantees