You must be doing something right for Slate to refer to your start-up funding as "the Google IPO event of the nonprofit world." The innovative search engine-turned-online applications company raised $1.67 billion in its initial public offering, after all, so when a philanthropic consultant writes that your "tested model … is about as good a philanthropic bet as they come," it’s time to pay attention.
The subject of Georgia Levenson Keohane’s ardor is Single Stop USA, a new anti-poverty nonprofit that raised $35 million in under months from some very discerning foundations. The organization says its Turbo Tax-like software needs just 15 minutes to help families in need identify all of the benefits and tax credits they’re eligible for — things they often aren’t even aware of. Counselors then take over from the computer, holding families’ hands and walking them through the application process. The results of pilot programs have been impressive and help to explain why results-oriented funders are so high on the initiative, says Keohane:
According to a McKinsey & Co. study of the New York pilot, the average family in a SingleStop program recouped $1,800 in tax credits and $5,000 in benefits that they weren’t previously receiving. For the typical SingleStop beneficiary—a single mother with two or more children, earning less than $10,000 a year and receiving no public assistance—this money can mean the difference of raising children above, rather than below, the poverty line. And for SingleStop’s underwriters, these outcomes mean substantial returns: For every $1 invested, the program gives clients $3 in benefits, $4 to $13 in legal counseling, $2 in financial counseling, and $11 in tax credits.
Sounds as if SingleStop is on to something. Innovation, results, return on investment — three essentials to attract foundations’ attention (and dollars) during lean economic times. | 501(c)
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