Philanthropic Investing for Social Innovation July 23, 2015 Forum - - PowerPoint PPT Presentation

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 D bbi M K C il f Mi hi

• Debbie McKeon, Council of Michigan

Foundations

• Gretchen Greiner‐Lott, Washington Regional

Association of Grantmakers

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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 l h l h h accrues primarily to society as a whole rather than private individuals.

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What does that mean? What does that mean?

• Philanthropy is changing

Philanthropy is changing

• Short on resources

i f di i l hil h

• Large on moving from traditional philanthropy

to…

…whatever you call it… Mission Investing Impact Investing Social impact investing Mission‐driven Investing Mission‐related Investing

• Measurable social or environmental benefit
• Financial return

g g

• Financial return

4

Moving from… to … Moving from… to …

5% Grants 95% Endowment 5% Grants 95% Endowment Grants plus: Loans Grants plus: Loans Loans Credit guarantees Investments in companies, etc. Loans Credit guarantees Investments in companies, etc.

5

Moving from… to … Moving from… to …

Working in philanthropy it Working in philanthropy it Working with an i i i t f Working with an i i i t f community community increasing variety of partners increasing variety of partners

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What does that mean to YOU? What does that mean to YOU?

• Know some of the basics of impact investing,

d d so you are prepared to respond

• 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

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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

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What IS clear?

• Program related investments
• Program‐related investments

– IRS tax code

• Look at the EXAMPLES!
• Look at the EXAMPLES!

– Typically counted towards 5% F ll th l – Follow the rules – Documentation critical M b l d d f

Meet Maya!

– Must be revolved or accounted for – Learnfoundationlaw.org PRI module – PRI legal primer on MIE website

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What IS clear?

New Philanthropic Investing Continuum

What IS clear?

New Philanthropic Investing Continuum

Endowment MRIs: Mission- Related Investments PRIs: Program- Related Investments Recoverable Grants Endowment Investments Investments Investments Recoverable Grants Primary Motivation: Social Return Primary Motivation: Financial Return

.

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What IS clear?

Countless Opportunities

What IS clear?

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 IS Cl ? What IS Clear? The Need for Information and The Need for Information and Strategy

• Debbie McKeon

Council of Michigan Foundations g

What IS Clear? h d f C ll b i & l The Need for Collaboration & Tools

• 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 K h th ‐ Know where the resources are ‐ 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 hi d bi Archived webinars 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