investor-report.abetterchicago.orgA Better Chicago Investor Report 2023 | Leveraging Data for Youth Progress

A Better Chicago - Investor Report Letter from the CEO Our Approach Our Impact Youth Insights Year in Review Looking AheadInvestor Report 2023 Leveraging Data for Youth Progress At the heart of A Better Chicago’s mission lies a deep commitment to creating transformative change in our city. We fight poverty with opportunity. We know when children and families have the support and tools they need to thrive—steady access to basic needs, a world-class education, a fair wage, the ability to buy a home and live in a safe community—we can break the cycle of poverty for this generation and generations to come. Through our work over the past year and the momentum we are carrying into the next, we have the unique opportunity to drive large-scale change. In 2023, we were proud to deploy over $7 million to the 27 organizations in our portfolio, working collaboratively to create opportunities for young people to escape poverty. We invested a record-high amount of funding towards management support projects, helping these organizations scale and serve more youth, more effectively. With tools like the Youth Opportunity Dashboard and the results from our inaugural youth focus groups and surveys, we used our unique position in the venture philanthropic space to uplift the voices of the children and communities we serve. By investing in organizations that are leading the way, listening to young people about where more resources are needed to help them thrive, and tackling poverty from the root with proven metrics, we can create lasting change in our city. Thank you for your partnership in this critical work. Beth Swanson, CEO, A Better Chicago …we have the unique opportunity to drive large-scale change. Portfolio Impact Snapshot Since 2011, A Better Chicago has deployed $73M to youth-serving nonprofits, reaching 115,000 students to date. In 2023, we invested over $7M to grow our portfolio of 27 organizations supporting the needs of youth from low-income backgrounds from cradle to career. We provided more than $2M in management support across more than 294 capacity-building projects to date. Last calendar year, our portfolio reached over 54,000 students, representing an increase of nearly 5,000 more youth than in 2022. Our portfolio of 27 organizations includes: 15 Early childhood and middle grade initiatives (operating at 20% above benchmark) 4 High school persistence initiatives (operating at 9% above benchmark) 8 College access/post-secondary initiatives (operating at 14% above benchmark) Our portfolio organizations are operating on an average of 13% above their respective benchmarks. 5,722 more students are on track for long-term success– 510 more than 2022 . 29,795 total youth on track to achieve critical milestones (in comparison to the benchmark of 24,040 youth) 89% of our portfolio beneficiaries are from low-income backgrounds, up 4% from 2022. Demographics our portfolio serves: 47% Black 43% Latinx = 90% Black and Latinx Our Approach A Better Chicago is changing how Chicago fights poverty by investing in bold ideas that create opportunity for our youth. While traditional philanthropies often focus on established nonprofits, A Better Chicago also aims to find and nurture promising early initiatives, or ones just beyond that stage that are on the cusp of expansion. We are a venture philanthropy that invests in the most promising nonprofits helping children escape poverty. We are the strategic partner for donors who want to make pivotal, well-researched investments that lift the outlook for our city. A Better Chicago’s unique model dramatically improves opportunities for underserved Black and Latinx youth by leveraging the collective power of Chicagoans who want to make our city more equitable. Driven by impact and collaboration, we employ a venture capital approach: We raise money from donors who want to maximize their impact by investing in innovative, youth-serving nonprofits that have the potential to expand exponentially. We vet them rigorously before investing, and our continued support depends on them meeting mutually agreed milestones. We provide unrestricted funding, renewed annually based on performance, along with strategic guidance and resources. Our goal is for our investments to eventually flourish without us. Our administrative expenses are covered by our board, ensuring that every donor dollar is deployed to the nonprofits we support. We’re a venture philanthropy. We do your homework and invest your money in Chicago’s best nonprofits. Our Investments A Better Chicago’s model ensures that we consistently make strong investment decisions. We invest in organizations that produce a meaningful increase in key life indicators for underserved Black and Latinx youth. We support leaders capable of mobilizing resources, building strong teams, and driving results. Catalyst Fund Early-stage, community-embedded programs with promising approaches to serving youth across the South and West sides of Chicago. Venture Fund Organizations that have proven program models, demonstrate strong early results, and are poised to scale in Chicago. Growth Fund Well-established organizations with proven impact for meaningful scale. Alumni Fund Former actively managed investments with proven impact that A Better Chicago continues to champion. Our Impact Portfolio Impact Snapshot Since 2011, A Better Chicago has deployed $73M to youth-serving nonprofits, reaching 115,000 students to date. In 2023, we invested over $7M to grow our portfolio of 27 organizations supporting the needs of youth from low-income backgrounds from cradle to career. We provided more than $2M in management support across more than 294 capacity-building projects to date. Last calendar year, our portfolio reached over 54,000 students, representing an increase of nearly 5,000 more youth than in 2022. Our portfolio of 27 organizations includes: 15 Early childhood and middle grade initiatives (operating at 20% above benchmark) 4 High school persistence initiatives (operating at 9% above benchmark) 8 College access/post-secondary initiatives (operating at 14% above benchmark) Our portfolio organizations are operating on an average of 13% above their respective benchmarks. 5,722 more students are on track for long-term success– 510 more than 2022 . 29,795 total youth on track to achieve critical milestones (in comparison to the benchmark of 24,040 youth) 89% of our portfolio beneficiaries are from low-income backgrounds, up 4% from 2022. Demographics our portfolio serves: 47% Black 43% Latinx = 90% Black and Latinx In 2023, A Better Chicago invested a total of $7M in our portfolio. These investments allow our portfolio organizations to continue their critical work helping children escape poverty. Milestones of our portfolio organizations in 2023 include: One Million Degrees One Million Degrees (OMD), partnered with City Colleges of Chicago to provide wrap-around support for all City College Students. This initiative automatically enrolls thousands of students into the OMD program, giving them access to coaching, mentoring, and financial support. Chicago Scholars Chicago Scholars announced the impact they have had on the more than 6,000 students they have served over its 28-year history. Young men of color who complete their program earn salaries approximately 2.5 times those of their peers. Chicago Scholars Alumni have collectively earned $6.8B more in lifetime earnings, and each Alum contributes an average of $500K back to their communities in societal benefits. College Possible College Possible signed a 3-year contract with Chicago Public Schools to implement its programming. With this achievement, College Possible surpassed its scale milestones for School Year 2023, serving over 1,600 students and bringing its reach back to pre-pandemic levels. Pitch In Chicago Pitch In Chicago unveiled their new program partnership with Benjamin E. Mays Elementary School. Pitch In is now serving five schools in the South...