July 23, 2010 — Two Massachusetts-based national nonprofits—Jobs for the Future in Boston and New Profit Inc. in Cambridge—have been awarded a combined $12.7 million in federal funds to expand effective community-based solutions to social challenges.

The grants come from the Social Innovation Fund, an initiative enacted under the Edward M. Kennedy Serve America Act, which aims to develop a new way of doing business for the federal government that stands to yield greater impact on urgent national challenges.

The two organizations were among 11 across the country to share $50 million in grants.

Jobs for the Future, which develops, implements, and promotes new education and workforce strategies to help communities, states, and the nation compete in a global economy, will receive $7.7 million over two years.

The organization will partner with the National Fund for Workforce Solutions to expand its targeted training and technical assistance to at least 23,000 low-income individuals over three years while also addressing the critical skill needs of more than 1,000 employers.

“The Social Innovation Fund grant will help our communities to scale up strategies that work in growing or high demand industry sectors,” said Marlene B. Seltzer, president and CEO of Jobs for the Future.

According to Jobs for the Future, the grant will support new regional start-up collaboratives in 6-8 communities in the south and southwestern regions of the U.S. and broaden the impact of current collaboratives in 12-16 communities where National Fund investments have already brought key stakeholders together around partnerships that serve the needs of both workers and employers.

Operating in 200 communities in 41 states, Jobs for the Future develops, implements, and promotes new education and workforce strategies.

New Profit Inc. a national venture philanthropy fund that seeks to harness America's spirit of innovation and entrepreneurship to help solve our country's biggest social problems, will receive a one-year, $5 million grant.

Pending approval of grant terms and conditions, New Profit intends to create the Pathways Fund that will invest in programs addressing issues surrounding youth development and school support.

"The partnerships forged by this process represent an exciting collaboration of leaders in the field of social innovation. We are honored to be included in this groundbreaking initiative and hope to make a measurable difference in helping young Americans more successfully navigate the challenging transition from high school to adulthood," said Sarah Di Troia, managing partner at New Profit.

New Profit will collaborate with five to six innovative youth-focused nonprofit organizations with existing evidence to yield significant improvements in helping young people navigate the increasingly complex path from high school to college and productive employment. The project will expand the reach of these nonprofits to improve the lives of nearly 8,000 young people in low-income communities throughout the country.

Three organizations have been pre-selected as grantees of the Pathways Fund, including Year Up in Boston, and others in New York and Washington, to receive funding through the program.

Year Up is tentatively slated to receive $2 million to close the opportunity divide by providing low income young adults with the skills, experience, and support that will empower them to reach their potential through professional careers and higher education.

Since 1998, with the support of individual investors and its signature partner, Monitor Group, New Profit has helped a portfolio of social entrepreneurs build their organizations and scale their social impact.