Philanthropic Investing for Social Innovation July 23, 2015 Forum Conference 1
Presenters Presenters • Shiho Fuyuki and Melanie Audette Mission Shiho Fuyuki and Melanie Audette, Mission Investors Exchange (Seattle) • Laura Tomasko Office of Social Innovation and • Laura Tomasko, Office of Social Innovation and Civic Participation, The White House • Debbie McKeon, Council of Michigan D bbi M K C il f Mi hi Foundations • Gretchen Greiner ‐ Lott, Washington Regional Association of Grantmakers 2
Investing for What? Investing for What? • A social innovation is a novel solution to a A social innovation is a novel solution to a social problem: • more effective more effective, • efficient, • sustainable, • or just than present solutions and for which the value created accrues primarily to society as a whole rather than l h l h h private individuals. 3
What does that mean? What does that mean? • Philanthropy is changing Philanthropy is changing • Short on resources • Large on moving from traditional philanthropy i f di i l hil h to… …whatever you call it… Mission Investing Impact Investing Social impact investing Mission ‐ driven Investing g Mission ‐ related Investing g • Measurable social or environmental benefit • Financial return • Financial return 4
Moving from… to … Moving from… to … 5% Grants 5% Grants Grants plus: Grants plus: 95% Endowment 95% Endowment Loans Loans Loans Loans Credit guarantees Credit guarantees Investments in companies, etc. Investments in companies, etc. 5
Moving from… to … Moving from… to … Working in Working in philanthropy philanthropy Working with an Working with an community community it it increasing variety of i i increasing variety of i i i t i t f f partners partners 6
What does that mean to YOU? What does that mean to YOU? • Know some of the basics of impact investing, so you are prepared to respond d d • Assess periodically the interest of your members and the relevance to your goals • Decide on education or know where to send members • Consider your leadership role Consider your leadership role • Know where to find more information 7
What do these changes mean to What do these changes mean to your MEMBERS? • They are hearing more about activity • They are curious and may feel confused • They may be overwhelmed in training • Investors may want to draw others in • Investors may want to draw others in • Advocates may face barriers in communicating • They may be excited and want to move without being adequately prepared 8
What IS clear? • Program ‐ related investments • Program related investments – IRS tax code • Look at the EXAMPLES! • Look at the EXAMPLES! – Typically counted towards 5% – Follow the rules F ll th l Meet Maya! – Documentation critical – Must be revolved or accounted for M b l d d f – Learnfoundationlaw.org PRI module – PRI legal primer on MIE website 9
What IS clear? What IS clear? New Philanthropic Investing Continuum New Philanthropic Investing Continuum PRIs: Program- MRIs: Mission- Related Related Recoverable Recoverable Investments Investments Investments Investments Endowment Endowment Grants Grants Investments Primary Motivation: Primary Motivation: Financial Return Social Return . 10
What IS clear? What IS clear? Countless Opportunities pp Mission-Related Investment Continuum
What IS Clear? What IS Clear? The Need for Partners • Laura Tomasko Office of Social Innovation and Civic Office of Social Innovation and Civic Participation, The White House
Pay for Success Pay for Success • Pay for success financing often is an opportunity to scale high performing projects or initiatives • If outcomes are achieved, investors are paid • • Ultimately cost savings and improved outcomes Ultimately, cost savings and improved outcomes • More resources for important work (leveraging private capital) • Cost savings for government • There is value in the process • Complex ‐ Multiple parties • • Measurement critical Measurement critical • The jury is still out
Wh What IS Clear? IS Cl ? The Need for Information and The Need for Information and Strategy • Debbie McKeon Council of Michigan Foundations g
What IS Clear? The Need for Collaboration & Tools h d f C ll b i & l • Gretchen Greiner ‐ Lott Washington Regional Association of g g Grantmakers
What IS Clear? Every Regional Has Different Needs Every Regional Has Different Needs ‐ Interest and timing isn’t the same for all Interest and timing isn t the same for all ‐ You don’t need to be a specialist today ‐ Know where the resources are K h th ‐ Talk with your peers and foundations doing the work
What IS Clear? ‐ It’s here (No more talk of a fad.) It s here (No more talk of a fad.) ‐ It’s fun learning!
Discussion
W b R Web Resources www.missioninvestors.org Archived webinars hi d bi Community Foundation Field Guide to Impact Investing p g Small ‐ staffed Foundation Guide (releasing in September Case examples Consultants listings News and blogs www payforsuccess org www.payforsuccess.org CDFI locator www.ofn.org
Thank you for attending! y g www.missioninvestors.org
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