April 10, 2019

NFG speaks with place-based funders on how they are using impact investing to further justice and equity

A newspaper page with graphs and charts for the stock market.

Photo by Markus Spiske on Unsplash

An increasing number of foundations are embracing impact investing as a powerful strategy to potentially make use of all of their assets — not just 5% — to advance their place-based and justice-oriented missions. Last month, several Neighborhood Funders Group members attended Confluence Philanthropy’s 9th Annual Practitioners Gathering to explore how the philanthropic and investment sectors can accelerate movement-building for equity. In reflection, a few folks from NFG’s funder network share their perspectives on, and experience in, mission-related investing.

Beyond grantmaking for racial equity

Soon after Confluence Philanthropy’s Gathering, NFG member Amalgamated Foundation launched the Hate Is Not Charitable Campaign. The campaign brings to light how Donor Advised Funds (“DAFs”) have been used to finance hate groups — often times anonymously — and calls on DAF providers to stop this trend that can fund in direct opposition to some of these foundations’ missions. While the campaign highlights how DAFs can be misused when they are eventually dispersed, Amalgamated is also considering how these funds are being used while they are waiting to be dispersed.

Quote by Tyler Nickerson of Amalgamated Bank: “This is an opportunity for foundations to put all of their resources towards mission alignment and supporting enterprises that center a racial justice strategy.”“DAFs provide a set of resources... that can be risk tolerant, quick moving, and significant in their scale. Utilizing current IRS tax codes, DAF holders are allowed to make program related investments with their resources,” says Tyler Nickerson, First Vice President for Philanthropy Banking at Amalgamated Bank.

By choosing not to invest in some of the market’s largest companies in the fossil fuel, gun manufacturer, and private prison industries, Amalgamated is proactively aligning all of its assets with its values of environmental and social responsibility.

Incourage Community Foundation invests all of its endowed funds, including DAFs, in the same investment pool that includes their impact investments. According to Heather McKellips, Director of Learning & Engagement, "Incourage looks for investment opportunities that advance its vision of an inclusive, adaptive, and sustainable community.” She says, “Prudently thinking through how the principal portion of an investment portfolio (the 95%) can be effectively deployed to positively impact an issue, in addition to the traditional grantmaking portion (the 5%), greatly increases the ability to impact the real issues facing our communities.”

Impact investing strategies

For Incourage, this includes an African American-led private equity fund that seeks to provide business ownership opportunities for entrepreneurs of color and regional Community Development Financial Institutions (CDFIs) that channel capital and technical assistance to underserved populations including entrepreneurs and households of color, and nonprofit organizations serving communities of color. Heather explains, “By investing in CDFIs that do small business lending in a community, area businesses can then more readily access needed funding to start up, retain, and expand operations, meaning more families have jobs and then have less of a need for support services that are often funded by grant dollars.”

Quote by  Mark Paley of The Hyams Foundation: “Hyams does, however, have a long history of utilizing PRIs… These investments are examples of using issue-specific investment models to further Hyams’s racial equity work beyond direct grantmaking.”For foundations just starting with impact investing, it can be helpful to look at these alternatives. NFG member The Hyams Foundation considers itself to be at the beginning stages of its impact investment work and is exploring investment strategies to further its mission to increase economic, racial, and social justice and power within low-income communities in Boston and Chelsea, Massachusetts. In addition to its affordable housing PRIs, Hyams is exploring additional social, economic, and racial justice investment opportunities including social enterprise, wealth building, and solidarity economy models.

“Hyams does, however, have a long history of utilizing PRIs, including two active loans to affordable housing loan funds. These investments are examples of using issue-specific investment models to further Hyams’s racial equity work beyond direct grantmaking,” says Mark Paley, Director of Administration & Finance (and NFG board member).

Quote by Heather McKellips of Incourage Community Foundation: “We have found it to be much more effective to start with the problem or issue, and then look holistically at what the resources are that you, or someone you can collaborate with, can bring to bear.”There are many approaches to impact investing. Unlike Amalgamated Foundation, Nia Community Fund's approach is to invest directly into solutions-focused companies with diverse leaders, rather than screen out sectors. Founder and Director Kristin Hull says, “We begin with our end goal in mind, rather than with traditional investment philosophy. We think about how we can use each dollar to maximize our positive impact.” Their investment dollars go to women and people of color-led businesses working to address social justice and environmental sustainability.

Amalgamated is also exploring new models seeking to expand capital to Black, Brown, and Native communities. “This is an opportunity for foundations to put all of their resources towards mission alignment and supporting enterprises that center a racial justice strategy,” says Tyler Nickerson.

Impact investing should always be centered around core values. Evaluating how a foundation is putting its values into practice can even start with how they interface with the investment industry itself. For example, Nia Community Fund looks for companies, funds, and investment managers that use a racial justice lens, and predominantly works with women and people of color.

Quote by Kristin Hull of Nia Community Fund: “Our investment dollars far outweigh our grant dollars and so we are really strategic with both buckets and do as much to leverage what we have and have every dollar be as effective as possible.”Incourage Community Foundation takes their role as an investor even further by being “active owners who vote proxies and practice other forms of shareholder engagement to encourage inclusive and fair labor practices, strong governance, and responsible environmental practices by corporations doing business in our state,” according to Heather McKellips.

Amalgamated’s Tyler Nickerson suggests that investors and grantmakers “listen to the communities in which they seek to support. They know what the community needs and the type of businesses it can support. Community members also know who is a fair employer and a good steward.” He notes that centering those voices and racial justice is key in developing solutions like a fair and equitable business strategy, whether it involves grocery stores or clean energy or manufacturing jobs.

Takeaways and lessons learned

1. Much like a healthy business model, communities need diverse forms of investment.

“Communities need multiple types of capital to become inclusive, thriving places. Charitable grants can’t be the only the tool to build greater equity within community,” says Tyler Nickerson. “Grants coupled with investment capital will create an integrated stream of resources to build communities where all people can succeed.”

2. For some funders, the grant-to-investment ratio can be strengthened, even while preserving an endowment’s lifespan.

Nia Community Fund’s Kristin Hull points out, “Our investment dollars by far outweigh our grant dollars and so we are really strategic with both buckets and do as much to leverage what we have and have every dollar be as effective as possible.” Nia Community Fund focuses on working beyond the status quo and investing into a just, sustainable, and inclusive economy, which means having an investment policy statement and investment practices that keep equity and justice as the core principles.

3. Focus on community needs first, and develop your investment model accordingly.

While foundations often start with an investment product that they then try to figure out how to use to address their focus issues, Heather McKellips of Incourage Community Foundation says, “We have found it to be much more effective to start with the problem or issue, and then look holistically at what the resources are that you, or someone you can collaborate with, can bring to bear."

4. Spread the risk and enhance the impact through collaboration.

This collaboration is key to moving the philanthropic and investment sectors to a more integrated and effective model. Confluence Philanthropy and NFG are creating spaces to explore ideas around impact investing, such as the Hyams Foundation’s interest in engaging with other organizations on what racial justice investment metrics could look like.

Amalgamated’s Tyler Nickerson advises, “Find your allies and ask them to join in community-based solutions. Doing so spreads the risk, expands the capital stack, and helps move other institutions in their learning journey.”

June 26, 2020

Strike Watch: Workers refuse to relent for Black lives, as COVID-19 workplace dangers expand

If there is an image that encapsulates the continued expansion of worker-led direct action in the last few weeks, it is Angela Davis on Juneteenth. With her fist raised high and face mask tight, Dr. Davis stood strong out of a roof of a car moving through a massive strike linking dockworkers and community to shutter the Port of Oakland for 8-plus hours. Led by the International Longshore and Warehouse Union (ILWU) shipping and transport workers, 29 ports were shut down as tens of thousands came together, and drew connections by featuring speakers such as fired Amazon warehouse worker Chris Smalls between the racial violence of police and that of powerful corporations.

Payday Report tracked more than 500 strikes from the first protest for George Floyd at the end of May to a nationwide day of action on Juneteenth. In Minneapolis in the days after the murder of George Floyd, workers showed solidarity in ways ranging from unionized bus drivers refusing to transport police to direct action by teachers to remove police from schools. Journalists also have confronted racism in their institutions, such as the 300-plus sickout at the New York Times to challenge Arkansas Tom Cotton’s op-ed calling for military action against protestors. Workers, small businesses and community collaborated on a Washington State-wide day of action where dozens of businesses shut down and employees skipped work to support of Black Lives Matter and confront white supremacy. 

Unions are also taking strong stances on the efforts to divest and defund from police (see our NFG resource for funders here) and invest in real community need and safety, including a wide ranging set of locals in the Bay Area supporting this call directly. Locals like UNITE HERE Local 11 in Los Angeles have confronted recent police killings such as the murder of 18-year old Andres Guardado (whose father is a union member) by the LA Sherriff Department (LASD) in Compton. The local joined street protests and signing on to BLM and abolitionist-led calls for a #PeoplesBudgetLA and a Care First budget defunding the LASD.

Using one’s workplace power to support anti-racism has also morphed among professional class workers “at home.” Dozens of scientific institutions, from journals to university departments, also #ShutDownSTEM to force reflection on entrenched racism in the US and support for Black lives.  #Sharethemic days where white women-identified influencers ceded space to Black women anti-racist leaders like #metoo founder Tarana Burke also offered new ways to consider not only walking out, but handing over resources, space and power.

Like the ongoing strikes responding to COVID-19, workers are exposing the hypocrisy of the endless barrage of corporate statements professing #BLM while taking actions that are quite literally killing their Black and brown workers. Under the cover of slick marketing, trillion-dollar companies like Amazon and Whole Foods are cutting back low-wage worker hazard pay and other protections (won by protests), even as COVID-19 cases spike in their worksites, and even seeing BLM masks banned on the job.

Global Essential Organizing in the Age of COVID-19

As COVID-19 cases (and unemployment claims) continue their ascent in the US, and other regions of the world see dangerous resurgences, mostly Black-, Latinx- and API- (including and especially migrant)-led worker organizing for basic protections has not let up either. The latest waves of strikes organized by Familias Unidas por la Justicia (FUJ) among dozens of apple picking and packing sites in Washington state’s Yakima Valley saw a significant victory with a signed collective agreement for safety and hazard pay among dozens of different apple picking workers earlier this month.

Mosty-migrant meatpacking workers globally – from Germany’s hinterlands to Hyrum, Utah – continue to demonstrate n the face of outbreaks in plants. Unionized nurses represented by National Nurses United and different SEIU affiliates are striking nationwide against the large US corporate hospital chain HCA Healthcare for still failing to provide Personal Protective Equipment (while cutting staff) starting Friday, June 26. Disney workers, meanwhile, attempt to stave off a disaster at their multi-billion dollar company seeks to re-open its theme parks in July.

Months of essential worker strikes are becoming entwined in an even broader sea of actions for Black lives and calling, in many cases, for police and prison abolition. Angela Davis reflected in an interview on the same day as the Juneteenth strike: “Activists who are truly committed to changing the world should recognize that the work that we often do that receives no public recognition can eventually matter.” The power reflected in ongoing strikes has been built at the grassroots through base building and other work for numerous years. Dr. Davis’ words are in many ways a call to action for philanthropy: how will funders fully recognize and support the immediate and long-term building necessary for worker-led organizing and power? And as major institutions like universities look inward, will foundations reflect on their own perpetuation of racism and corporate power - from external investments to internal practices?

FJE’s Strike Watch is a regular blog and media series dedicated to providing insight on the ways in which grassroots movements build worker power through direct action. Our ultimate goal: inform philanthropic action to support worker-led power building and organizing and help bridge conversations among funders, community and research partners. We are grateful and acknowledge the many journalists and organizations that produce the content we link to regularly, and to all our participants in first-hand interviews. Questions on the content or ideas for future content? Reach out to robert@nfg.org

Photo Credit: Yalonda M. James / The San Francisco Chronicle via Getty Images

Photo Credit: Yalonda M. James / The San Francisco Chronicle via Getty Images

June 25, 2020

$50million for M4BL - See You There

Dear Donors, Funders, and Resource Mobilizers: 

The Movement for Black Lives mounted a significant SixNineteen Juneteenth weekend of actions in a matter of weeks. Virtually, over 185,000 people viewed M4BL-TV to celebrate, mourn, and learn. Over 650 in person and online actions took place in cities and communities across the nation, and globally. For context on the strategy behind this weekend of action we recommend the first episode of the People's Action Podcast The Next MoveMaking Meaning with Maurice Mitchell

We are deeply moved by Black Leadership and now we are getting closer to a world where defunding police and building new visions of community safety, infrastructure, and recovery are not just possible, but are inevitable.  This month alone, we’ve seen:

·  A veto-proof majority in the Minneapolis City Council pledged to take steps to eliminate the Minneapolis Police Department and replace it with a community alternative.

·  The mayor of Los Angeles announced that the city’s police budget would be cut by $100-150 million to reinvest it in programs to create better conditions for Black residents,

·  The public perception of policing and racism has shifted dramatically, with 54 percent of Americans supporting the uprisings.

·  And dozens more victories listed here.

We asked you to meet the courage of M4BL’s Juneteenth action by moving resources with integrity and speed. We asked you all to resource our movements working to Defend Black Lives by breaking the rules: give more than 5% from your endowments, trust Black leadership, and remove habitual philanthropic red tape. We responded to M4BL’s call to philanthropy and stated that $50M is the floor, and it is more than possible if we are prepared to fund the Movement for Black Lives like we want them to win. Your commitments so far is the proof point - you were listening! We are grateful for the ways you have shown your solidarity so far. 

Our first goal was to raise half of it by the end of June - $25M. We need your support and solidarity over these next seven days and beyond.  

In 14 days we have raised $18M in commitments, pledges and cash on hand. We have $7M to raise in 7 days and a week to make our first goal.  Solidaire Network and Resource Generation have both pledged to organize their members, and we’ve had contributions come in from the $10,000 to $5M range. Some of you have even pledged for 10 years, demonstrating your commitment not just to the moment but to the long term movement that’s needed to win. 

As a reminder, here are the four ways we need you to show up for Black lives: 

  1. FIRST: COMMIT. If you haven’t done so yet, complete this survey with your own pledge today.
  2. SECOND: ORGANIZE. We need you to organize your institutions, boards, friends, family, funder affinity groups -- the communities you can and have organized to move resources.
  3. THIRD: GIVE. We ask that you make a generous one-time donation and a sustainable recurring donation to M4BL and its ecosystem here.
  4. FOURTH: FOLLOW THROUGH. Get ready to share with us what you are prepared to do, and what philanthropic “rules” you are prepared to break to Defend Black Lives today.

In struggle, 

Funders for Justice and our donor-organizing partners for the Movement for Black Lives 

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