Why We’re Investing In Social Capital

Dear Friends and Partners,

If we take a moment to stop and reflect on how each of us got where we are today, there is no doubt that social capital played an important role in connecting each of us to opportunity.

Social capital is the strength of an individual’s social network and community. It speaks to the role a person’s friends, family, co-workers, and other relationships play in helping them further their potential and achieve their goals.

While we often talk about the impact of education and employment in helping young people access opportunity and thrive, the truth is social capital plays an outsized and overlooked role in helping all of us access and sustain meaningful pathways to fulfilling lives.

Data tells us this is true. Groundbreaking research from Professor Raj Chetty and colleagues demonstrates that cross-class connections boost social and economic mobility more than any other factor, including school quality, family structure, job availability, or a community’s racial composition. According to our partners at the Christensen Institute and Silver Lining Mentoring: an estimated 50% of jobs are found through personal connections. Young people with mentors are over 50% more likely to graduate from high school and 40% more likely to be employed.

Social capital is everywhere in our society, but opportunities to develop relationships and access the resources they offer are not distributed equally. For young people of color, those who grew up in low-income households, and youth involved with the foster care system, social capital has historically been much more difficult to access to reach greater opportunity.

Recognizing the importance of social capital and its potential to address historical inequities, the Schultz Family Foundation has invested in 14 organizations over the past two years to help young people access, sustain, and mobilize social capital. These organizations help young people make connections between the relationships they have, those they will create, and the opportunities that can be accessed by the growth of their networks. In addition, we have formed a Learning Collaborative to help practitioners share knowledge and broaden their understanding of the role networks and relationships play in supporting young adults navigating critical life transitions.

We are grateful for the tireless work of our partners ensuring young people have the skills and opportunity to grow and sustain supportive, robust networks helping them thrive. We invite you to learn more about our work in social capital below.

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Since 2021, the Foundation has invested nearly $6 million in 14 different organizations. These organizations have worked with more than 11,000 young adults to strengthen and grow their networks through social capital development opportunities.

At this year’s National Mentoring Summit, we spoke with 8 of our partners about social capital and how they help the young people they serve access, build, and mobilize social capital to reach their goals.