Our model

We invest in the best education and employment non-profit organisations and use insights from these organisations as the basis of our research and policy work

Part 1

Our challenges

The challenges we focus on

Together with our portfolio of non-profit partners, we tackle the three most difficult challenges that affect a young person’s ability to succeed in life in Britain today.

1

Lost learning through absence, suspensions, exclusions from school

2

Stagnation in education attainment outcomes, which means many are missing out on key qualifications like GCSE English and maths

3

The large numbers of young people out of education, training and employment

These issues affect many young people, but they disproportionately affect those from disadvantaged backgrounds.

Impactful* non-profit organisations have an important role in tackling these challenges, but they face barriers to achieving meaningful impact.

Non-profit organisations generally want to do more to evaluate and improve impact but lack capacity and funding to do it

Funding is often short-term and restricted - especially outside London and for leaders from ethnic minority backgrounds, who frequently serve those facing the greatest barriers

Leadership teams are stretched and don’t have the time and resources to invest in the infrastructure of their organisations

As a result

Lack of unrestricted funding makes it hard for CEOs to build the core functions they need to shape programmes for impact, build stable funding streams

Restricted funding adds complexity and fragmentation. Charities often face difficulties when it comes to building a depth of expertise

Too often, CEOs and their teams are expected to work miracles to secure grants, ensure service delivery is on track, and keep stretched colleagues motivated

These challenges are most acute for leaders from ethnic minority backgrounds, who lead organisations that are disproportionately underfunded and often serve the young people facing the greatest barriers.

Part 2

Investing in non-profit organisations

Our approach: Driving Impact

As a leading impact funder, since 2002, Impetus has been helping the best leaders build stronger organisations delivering the most promising interventions that support young people from disadvantaged backgrounds to succeed against the odds.

We provide the non-profit organisations in our portfolio with the essential ingredients for making real impact.

Our investment journey

Our support follows a phased approach. The journey consists of six phases.

1

Find

Invite applications and assess mutual fit through a thorough due diligence process
2

Focus

1-2 years
Clarify purpose and direction
3

Build

3 years
Build foundations for impact and growth
4

Grow

3 years
Evidence impact and accelerate growth
5

Scale

3+ years
Drive large scale adaption
6

Alumni

Graduate from our portfolio and stay within the Impetus network
1

Find

Invite applications and assess mutual fit through a thorough due diligence process

We look for organisations with:

  • A focus on improving the educational and/or employment outcomes of young people from disadvantaged backgrounds
  • Potential for longer-term sustainability and delivering impact at scale
  • A commitment to equity, diversity and inclusion
  • Openness to external challenge and capacity to engage with our support
2

Focus

1-2 years

Clarify purpose and direction

  • Facilitate Driving Impact workshops to help the organisation's executive team, Board and staff align on the organisation's theory of change
  • Help build three-year strategic plan
  • Prioritise key areas for SMT development
  • Support development of leadership team and core organisational foundations
3

Build

3 years

Build foundations for impact and growth

  • Support roll-out of a new or refined programme
  • Help embed "impact culture" (structure, tools, routines) in organisation
  • Help build the organisation's brand and operating model
  • Support the appointment of new Senior Management roles
  • Advise on the development of the organisation's Board
4

Grow

3 years

Evidence impact and accelerate growth

  • Support the organisation to accelerate growth in reach and income
  • Help build evidence of impact, typically through external evaluation
  • Help develop plan for scale-up
  • Guide development of, leadership, governance and operating model for scale
5

Scale

3+ years

Drive large scale adoption

  • Help implement programme adaptions for scale
  • Support development of broader organisation for scale
  • Help unlock government funding for scale
  • Assess quality of replication and outcomes at scale
6

Alumni

Maintain connection to Impetus community

  • Invite alumni to take part in Peer Forum
  • Collaborate on policy work
  • Promote work of alumni partners
  • Track long term growth and outcomes

On average for every organisation that we fund, we receive 100 applications to join our portfolio. Each partner that joins our portfolio will have undergone three months of due diligence.

At the end of each phase, we make investment decisions based on continued mission fit, evidence of organisational development, further potential the partner to grow its impact, and potential for Impetus to add value.

The majority of our partners stay in the portfolio until the end of Grow phase. A subset of partners with potential to achieve national scale take part in Scale phase.

Each partnership is managed by an Investment Director, with support from Investment Managers. IDs and IMs spend about a day per week with each partner.

Our model of support is deeply relational: our team build deep, trust-based relationships with CEOs and their team and creates space for them to raise and work through their most pressing strategic needs with our support.

We're proud of the results we achieve together with our portfolio partners

6x

Average income growth over a seven-year partnership with Impetus.

Our impact
7x

Average growth in reach over a seven-year partnership with Impetus.

Our portfolio partners
Part 3

System change

Policy and research: building the case for large scale government intervention to tackle these challenges

Our policy and research work is a critical element in how we make change happen. We believe that if we want to make a difference to the lives of all young people, then we must engage in system change.

Non-profit organisations alone cannot address the scale of some of the challenges faced by young people from disadvantaged backgrounds

There are around two million young people from disadvantaged backgrounds of school age

Hundreds of thousands of these young people (approx 30%) are currently persistently absent. Our research shows that this group of young people are also 40% less likely to achieve their GCSEs, which means that at the current rate of progress more than a million young people from disadvantaged backgrounds are likely to fall short of this crucial outcome. GCSEs are vital for progression into sustained employment, and the gap in employment outcomes for this group also remains stagnant.

With good growth, single non-profit programmes can reach thousands of young people

Through our work, we see many examples of high-impact interventions from third sector organisations who are delivering impact at an impressive scale. Their work transforms individual lives and achieves outcomes that would not have happened anyway. Single organisations making a difference to thousands of young lives is impressive. But no single organisation can solve systemic problems.

The question is, how can an organisation like Impetus maximise its impact on a problem of that scale?

When the size of the problem requires reaching millions rather than thousands of young people, what is needed is systems change. If we want to improve outcomes for all young people regardless of background, engaging with policy isn’t optional, it is integral to achieving our mission. And at Impetus, we are in a unique position to do this work...

Our policy approach

Working so closely with our portfolio partners means that we have deep insights into what policy changes will have a meaningful impact on the causes and effects of persistent disadvantage.

Our policy team takes what we know and works alongside other education and employment sector leaders to build the case for large-scale government intervention through:

Research

Research

Gathering new research and evidence to understand the challenge, to share alongside insight into what works from our portfolio partners.

Targeted campaigns

Targeted campaigns

Working in coalition with like-minded organisations to shape the public debate.

Influencing decision-makers

Influencing decision-makers

Directly influencing key figures through our networks in and connected to government, to drive change.

Why we do policy work

Our policy team is focused on ensuring more young people from disadvantaged backgrounds are in school, gaining qualifications, and in long-term employment.

1
Lost learning through absence, suspensions and exclusions from school
2
Stagnation in education attainment outcomes
3
Large numbers of young people not in education, employment or training (NEET)
Building the case for large scale government intervention
Understanding of the challenge and what works from our research and our portfolio partners

Understanding of the challenge and what works from our research and our portfolio partners

Sharping the public debate through targeted campaigns delivered alongside our coalition partners

Sharping the public debate through targeted campaigns delivered alongside our coalition partners

Directly influencing key figures in government to drive change

Directly influencing key figures in government to drive change

Budgets and government policies unlocked

Interested in supporting our mission?

Discover how you can partner with us to transform the lives of hundreds of thousands of young people across the UK.

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Explore our strategy

Discover how we plan to back great organisations and influence the system to deliver impact at scale. 

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