Next Generation

A Hot Summer for Impact Investing

Posted on by Case Foundation

The past few months have been full of news on the growing impact investing sector. Coming off of the announcements earlier this year—Bain Capital starting an impact fund under the leadership of Governor Deval Patrick, BlackRock starting an impact practice and Darren Walker and the Ford Foundation taking leadership of the U.S. National Advisory Board on Impact Investing—Jean Case recently described the increased buzz and activity as A New Inning for Impact Investing. She shares her insights on the growing movement that has until recently been in “spring training,” and an all-star line-up that is now taking shape.

We’ve summarized several key pieces of news from the past few months so you can read all about the latest updates. We look forward to seeing even more momentum this year!

 

Global Progress on Impact Investing

The Social Impact Investment Taskforce, established under the British presidency of the G8 in 2013, met in London in July to talk about progress achieved by member countries and to discuss what’s next for the group. Private and public sector representatives from G7 countries, the EU, Australia, Brazil, Israel, India, Mexico, Portugal, South Africa, China and others were present. Sir Ronald Cohen, Chair of the Taskforce, opened the Plenary Meeting by saying that “it’s impossible to stop an idea whose time has come,” and country report-outs on progress seemed to strongly support that statement. You can find presentations and reports from the Plenary Meeting on the Taskforce website.

New Report: Impact Investing Can Provide Market-Rate Returns

The Global Impact Investing Network (GIIN) and Cambridge Associates released results from a new study, the Impact Investing Benchmark. The report presents aggregate financial performance from 51 private equity and venture capital impact investment funds that have the intention to generate measurable social impact alongside a financial return. The report reveals that many of the early funds, established between 1998 and 2004, have achieved market rate or above market rate returns, demonstrating that impact investments don’t necessarily require financial sacrifice. GIIN and Cambridge Associates will provide quarterly updates on the benchmark.

Mixed Results for Social Impact Bonds

In an attempt to more effectively combat youth recidivism at the Rikers Island jail in New York, Goldman Sachs and Bloomberg Philanthropies launched the first Social Impact Bond (SIB) in the United States in 2012. The program provided cognitive behavioral therapy to youth at Rikers in an attempt to reduce their likelihood of returning to jail. Unfortunately, the new therapy didn’t work to reduce recidivism at Rikers, so the program has ended, and Goldman Sachs and Bloomberg Philanthropies have lost their $7.2 million investment.

Technically, the SIB worked: the program didn’t generate results, so taxpayers didn’t have to pay for it. Of course, we all hoped that the new intervention would have reduced recidivism. However, the pioneering model enabled government to experiment on providing a new and different service that might have led to better outcomes, but without the financial risk. This model of de-risking will hopefully lead to more innovation in provision of services even when government budgets are tight.

There was more positive news out of the UK, where three SIBs returned investor capital. Each of the three SIB partners—Career Connect, Teens & Toddlers and Advisa—met their goals, and investors received a financial return ahead of schedule. The nonprofits worked with Social Finance to improve educational participation for 4,000 teens through a number of activities, including job coaching and after school programs.

Better Outcomes at Lower Cost: Congressman John Delaney’s TEDx Talk on Pay for Success

Congressman John Delaney has been a consistent advocate for Social Impact Bonds and Pay For Success models as a means to address three challenges in government: lack of funding, inability to innovate and insufficient data on social impact. Watch Congressman Delaney’s call-to-action to “put aside the ideological divide” and “stand up for a smarter government” that can “intervene and make a difference in people’s lives but is focused on innovation, fiscal responsibility and focused on new ways of delivering its services.”

Goldman Sachs Asset Management Acquires Imprint Capital

In July, Goldman Sachs Asset Management announced its acquisition of Imprint Capital, an impact investing advisory firm. This acquisition highlights the growing need for impact investing experts within the traditional asset management field and a growing demand for products that consider environmental, social and governance as well as other impact metrics.

Millennial Entrepreneurs Get a Chance to Turn Ideas Into Reality

The Case Foundation is a proud sponsor of the Forbes $1 million Change-the-World Social Entrepreneurs Competition, which will identify and reward young social entrepreneurs leading for-profit and nonprofit social enterprises that address global challenges. This competition presents an opportunity for bright minds under 30 to change the way we approach social issues of our time. If you’re under 30 and changing the world, or you know someone who is, please apply! The deadline is August 26.

Excited about the news and want to learn more about impact investing? Follow our twitter feed @CaseFoundation, and check out the Case Foundation’s A Short Guide to Impact Investing.

Announcing a New Partnership to Support Young Social Entrepreneurs

Posted on by Case Foundation

The Case Foundation has long been a believer that entrepreneurs can change the world, and that young people have a particular set of skills and impact-oriented ambitions to build great social enterprises.

Today, we’re excited to announce our sponsorship of the Forbes $1 Million Change the World Social Entrepreneurs Competition – the largest ever competition for young social entrepreneurs.

Through our participation, we will support the most promising of the for-profit entrants into the competition with disruptive and scalable ideas who can best demonstrate how business can change the world.

Check out Jean Case’s blog announcing the competition—Searching for the Next Big Thing—for more information and to learn how you can get involved. Please share this opportunity with your networks of young changemakers far and wide!

Authenticity, Relevance and the Power of Business as a Force for Good: Inspiration for the 37,000 Changemakers at MCON 2015

Posted on by Case Foundation

For the fourth consecutive year the Case Foundation proudly supported the Millennial Impact Conference, MCON2015, hosted by Achieve at the Museum of Contemporary Art in Chicago. The dynamic two-day conference, which coincided with the release of the 2015 Millennial Impact Report, featured thought leaders from companies like Upworthy, American Express, the Huffington Post, the Levi Strauss Foundation, Square, sweetgreen, Baltimore Corps, the Knight Foundation, National Geographic, Opportunity International and more. The theme for this year’s convening was “The Power of Influence” with breakout tracks exploring art, business, media and place – and their collective impact on the ways in which the Millennial generation is engaging with the world and creating change. We were also joined by Reena Ninan, of ABC News, Cody Switzer from the Chronicle of Philanthropy and Tom Davidson from PBS, as they moderated and guided the discussion throughout both days.

In Good Design: Trends Fade, Truth Remains

There were countless moments at MCON 2015 that emphasized this theme and several that stood out to our team. These included a conversation on art and design with Amy IMG_9587and Jennifer Hood from Hoodzpah Design Company and Steve Alfaro from Voto Latino. The panel identified the importance of recognizing your true mission and cutting the extra noise created by attempts at trendiness to create honest communication about a given organization. Genuine branding and imagery can be a powerful tool to help spread messages to all audiences, not just Millennials. But authenticity is key – Millennials can sniff out insincere messaging and forced trends. Hoodzpah explained that for companies to take advantage of Millennials’ inherent interest to shop for social good, they have to authentically connect their products, services or operations to a socially beneficial outcome. Otherwise this generation will fail to be impressed.

Alfaro agreed that the same degree of authenticity is a requirement for nonprofits. Design must resonate with audiences as timely, easily shareable and communicable, and the message has to be authentic.

Investing with Profit and Purpose in Mind, it’s Good Business

 Impact investing played a central role in many of the conversations at MCON, and for very good reason. Over the next four decades, the baby boomer generation will transfer $30 to $41 trillion in assets to the Millennial generation. At the same time we are witnessing the next generation’s drive to create social change now, rather than waiting until the end of their careers, and this includes starting or investing in socially conscious companies.

As Stephanie Cordes, the vice chair at the Cordes Foundation (and a Millennial) shared, 91% of consumers say they would switch products to purchase in support of a cause and millennials make up an ever-increasing proportion of these consumers. Moreover, according to Spectrem Group, 75% of Millennials now consider the social and environmental impact of the companies they invest in to be an important part of investment decision-making. Companies that closely integrate social good into their business model were featured widely at MCON, including the Fashion Project, which enables fashionistas to sell their gently used clothing and accessories online while donating a portion of proceeds back to a charity of their choice, and Miir, which gives back to charitable causes for every product it sells (ranging from bikes to backpacks to water bottles.)

Attendees also heard about the full range of impact investing opportunities from Dr. Rishi Moudgil from the University of Michigan, attended a co-fireside chat with Ellen-Blair Chube of Ariel Investments and Karen Martell of Square, and Nicholas Tedesco from J.P. Morgan discussed philanthropic engagement with millennial investors.

The notion that Millennials value the social commitments of the companies they invest in and purchase from resonated through many of these talks. The market is responding to the millennial generation’s expectation that doing good requires cross sector collaboration and greater fluidity between different market types.

Lessons from more than a Century of Doing Good

mcon photoFinally, two household names shared their insights on how their brands remain strong cultural symbols that transcend generations. Daniel Lee of the Levi Strauss Foundation (which was recently profiled by the Case Foundation in our Be Fearless Action Guide) gave a moving talk about the impact of the Levi Strauss brand since its founding in 1873. Throughout its 142 year history, the foundation has spearheaded moments of progress for civil rights throughout history. As a foundation and a corporation, Levi Strauss is not afraid to show its support for the movements that align with its values and to take necessary steps to be considered a continuously relevant brand.

The audience was noticeably excited to hear from Gary Knell, CEO of National Geographic (Nat Geo). The media company has been a cultural phenomenon and educational resource for millions of people across the globe (it is printed in 41 languages) for more than 125 years. A whopping 23 million people follow Nat Geo’s Instagram account, which serves as a powerful storytelling platform and place to share mesmerizing imagery, and as a result is regarded by Knell as one of the organization’s strongest communications tools. With its size, global reach and history, Nat Geo continues to set the bar for true, authentic storytelling. By articulating its clear values of conservation, education and inspiration and coupling them with powerful stories, told through video and photography, they show us all how an organization can build strong relationships with its audiences across generational lines. By successfully traversing many different media platforms (Nat Geo also has a noticeable presence on Snapchat, for example), while staying true to their brand, Nat Geo remains a relevant and beloved brand for audiences that range from the eldest Baby Boomers to Millennials (and younger!).

The Conference concluded with a live performance from the lead singer of O.A.R, Marc Roberge. Marc is equally known for both his musical talent and for his commitment to social good causes. He shared how his band has given back to the communities they tour across the globe, including donating a $1 from every ticket sold in some cities to local charities like the Habitat for Humanity. Check out the band on Spotify HERE.

MCON2015 was a wonderful opportunity to hear what is going right with current inter-generational relationships and highlighted the potential for millennials to truly become, as Jean Case, the Foundation’s CEO says, “the next greatest generation.” The conference gave concrete details about Millennials’ interests in blurring the lines between personal and professional lives through philanthropy and their desire to chart individual courses to civic engagement based on personal talent and passion. The Case Foundation is proud to continue our support of MCON and the Millennial Impact Report as a tool to foster understanding and engagement as millennials grow into leadership positions and begin making decisions that will further shape the futures of our nonprofit, government and corporate sectors.

Through the two days of presentations, panel discussions and Learning Labs a few themes emerged about effectively engaging Millennial audiences – the importance of authenticity in your brand and message; the power of business to be a source for good; and the significance of maintaining relevancy through generational, cultural and civil rights changes. We look forward to sharing many of the featured speakers and their videos with you over the course of the next few weeks. Be sure to follow @CaseFoundation via Twitter for a glimpse into MCON!

Business as a Force for Social Good

Posted on by Case Foundation

This post was written by J.D. Brady on behalf of the Case Foundation:

At the Case Foundation, we believe impact investing is an excellent example of how business and philanthropy can work hand-in-hand to drive social change. We applaud the work of for-profit enterprises that deliver both a financial and social return, and we encourage investors to support the growth of these companies.

J.P. Morgan’s Nicholas Tedesco is doing just that–creating a bridge between for-profit and non-profit worlds. He joined us at MCON 2015—our annual event that brings together thought leaders from across sectors to explore new ideas regarding engagement with the Millennial generation. As a Senior Philanthropic Advisor in the J.P. Morgan Philanthropy Centre, Nicholas helps clients achieve their philanthropic goals. Before joining J.P. Morgan, Nicholas was with the Bill and Melinda Gates Foundation. In that role, Nicholas helped launch the Giving Pledge, an undertaking that encourages the world’s wealthiest people to dedicate the majority of their wealth to philanthropic endeavors. To date, nearly 200 philanthropists have signed the pledge.

The Case Foundation sat down with Nicholas to discuss the Millennial generation’s approach to investing, where the impact investing sector is headed and what challenges leaders in the philanthropic space.

CF: How do you see Millennials engaging in philanthropy?

NT: It has been widely talked about that we are in the midst of the greatest wealth transfer in history–-the next generation will inherit an estimated $59 trillion over the next 40 years and are positioned to be some of the most influential donors in history. We are seeing some interesting trends among Millennials with respect to their giving. It is starting earlier: wealth is being made at a much earlier age and on a much larger scale than ever before. And people are looking to give back much earlier. They are taking a venture approach–-they are looking to address large-scale social problems with a more hands-on and results-oriented approach. They are also willing to experiment and test new approaches and are more apt to employ nontraditional methods like impact investing.

CF: What is the most interesting thing that you’ve seen in the last year regarding impact investing?

NT: One of the most interesting things I have seen in the last year is the rise in popularity of social impact bonds. Although they are still largely in their infancy, social impact bonds are gaining traction. Utah is spearheading a program that will bring a lot of attention to the “pay for success” model, as are California and Oregon. Although the model will likely never be widely adopted due to its reliance on the government, it is shedding light on the importance of impact metrics.

CF: Is the impact investing movement growing? Do you think we’re at a tipping point?

NT: I absolutely believe that the impact investing movement is growing–-particularly on the west coast. Its core tenants appeal to younger donors who are eager to tackle longstanding social issues with a multipronged approach. We are also seeing an increased awareness among the business community that social and economic returns do not have to be mutually exclusive and decoupled. I do not think we are at a tipping point (yet). We need a few more years to allow more deals to surface, investments to mature, and thought leaders (like Jean and Steve Case) to inform the general public. Impact investing is still a largely unknown and young movement and people are reluctant to be a pioneer.

CF: What are the greatest challenges philanthropic leaders are addressing today?

NT: One of the greatest challenges philanthropy–-as a discipline–-is facing is how to define and measure impact. Americans gave a record $335 billion to charitable causes in 2013, yet it is hard to quantify the impact of those gifts. There are very few philanthropists who are equipped to adequately assess the yield of their grants–-with a large number of donors simply trusting their grantees to execute a successful strategy. However, we are seeing an increased focus on measurement and evaluation from philanthropists at all levels, and as a result, we are seeing donors who are much more engaged with the organizations that they choose to fund.

This is the fourth in a series of blog posts featuring speakers from MCON 2015. Check back to learn about more innovators and leaders from the private, nonprofit and public sectors. Also, be sure to check out the 2015 Millennial Impact Report. 

It’s In Our Jeans: How One Clothing Brand Conquered Fear

Posted on by Case Foundation

This post was written by J.D. Brady on behalf of the Case Foundation:

Few changemakers embody the Be Fearless mantra quite like Levi Strauss & Co. and its Foundation. For more than 160 years, the brand has implemented a unique approach to investing in causes. As a company, they have always strived to go first. In fact, they were one of the first brands to help fight against the HIV/AIDS epidemic; their work force was racially integrated years before Civil Rights legislation was implemented; and the company was one of the first to offer domestic partner benefits. Levi Strauss & Co. developed “the code that launched a thousand codes” when it became one of the first companies to create a “code of conduct” determining how contractors must treat workers and the expectation of contractors to produce a quality environment in which to work.

Just last year the Case Foundation featured the Foundation as a Be Fearless case study. Led by executive director Daniel Jae-Won Lee, the Foundation makes big bets and causes they are invested in and was one of the first to set aside dedicated funds for an experimental, “innovation” portfolio. Each year roughly 15 to 20 percent of their budget is directed to potentially transformative projects and their leaders with great ideas.

In advance of MCON this month, Daniel shares his lessons learned at the helm of the foundation and how his team has worked to solve some of society’s most pressing social issues. We look forward to hearing him share his insights at MCON 2015.

CF: Part of your emphasis as an organization is improving worker well-being at apparel companies located in communities where your products are made. Tell us more about these efforts and what impact you have made.

DL: We have a longstanding commitment to improve the well-being and rights of people who make our products. Levi Strauss & Co. has invested more than $10 million in the past fifteen years on factory-based programs to enhance the health, financial security, life skills and awareness of apparel workers. But here’s the catch: when we asked how many of these terrific initiatives were sustained in the factory beyond our initial funding, the answer was resounding — zilch.

Out of this came a new business approach: Improving Worker Well-being. Our foundation is supporting efforts by Levi Strauss & Co. to foster the ownership and sustainability of these programs among key vendors in the supply chain, based on the premise that what is good for workers is also good for business. We recognize a lynchpin to factory ownership is measuring the social and business impact of these worker programs. Studies have shown that for every dollar invested in women’s health on the factory floor, there are three or four dollars of return in terms of improved productivity and reduced absenteeism. It won’t be turnkey or overnight success, but the company is committed to working with its key suppliers over the next five years to generating this business and social value – and making Improving Worker Well-being a way of doing business.

CF: What are the greatest challenges facing communities today? What are some ways the Levi Strauss Foundation is addressing these challenges?

DL: In the United States and across the globe, the rise of income inequality is one of the most critical issues of our time. It is striking to see both Democrats and Republicans speaking on this topic in the prelude to the 2016 Presidential election. The Levi Strauss Foundation has invested $7.5 million in asset building programs since 2007. These allow low-income people not merely to gain an income but also generate savings and invest in long-term assets like education or a home. More recently we joined SF Gives, a collaborative effort spearheaded by the anti-poverty champion, Tipping Point, and Marc Benioff, founder and CEO of Salesforce. The initiative takes a full-circle approach by bringing together companies from across the Bay Area – including many new players from the technology sector – to leverage their support, employees and influence to address poverty in the Bay Area.

CF: What is one of the biggest bets that the Levi Strauss Foundation has made since its inception?

DL: In 1982, Levi Strauss & Co. was among the first corporations to respond to HIV/AIDS (even before it had a name, when it emerged a mysterious and deadly virus) due to its impact on our employees. One year later, our foundation was the first to help fund the fight against the epidemic. More than 30 years later, this global epidemic is expanding in key markets like Russia, China, India, South Africa and the United States. Due to stigma and discrimination, those people and groups who bear the brunt of this epidemic are viewed as not worthy of having rights.

In the early days of the epidemic, our funding helped seed and grow many incredible organizations – first in San Francisco and eventually in over thirty countries around the globe. Today, the Levi Strauss Foundation is proudly supporting the human rights response to this global epidemic, an approach that receives less than one percent of total HIV/AIDS funding. Only by changing discriminatory laws, bad public health policies and stigmatizing cultural practices – and cultivating those groups most impacted by HIV/AIDS as advocates and agents of change – can we claim victory over this disease and cultivate an AIDS-free generation.

This is the first in a series of blog posts featuring speakers from MCON 2015. Check back to learn about more innovators and leaders from the private, nonprofit and public sectors. Also, be sure to tune in to the live stream of MCON on June 24th and 25th!

The Power of Influence: Get Ready for MCON 2015

Posted on by Case Foundation

This post was written by Derrick Feldmann on behalf of the Case Foundation:

In 2010, Achieve and the Case Foundation began an effort to understand the dynamics between organizations and a new generation of donors and activists. Together, we established the Millennial Impact Project to fill a knowledge gap that existed in the field: How does the Millennial generation connect, involve and support causes?

This research has helped thousands of organizations and companies reach and activate this generation of do-gooders, but we didn’t want our findings to stay just on paper; we wanted to cultivate a learning experience. That is why we launched MCON in 2012, and it has since grown into the nation’s premier conference on the movements that are improving our world and how the next generation is shaping the work we do in communities across the country.

Year after year, MCON proves to be an unforgettable experience for every online and in-person attendee. Participants come from across the country to discover how the next generation is influencing their world and the way they operate within it. MCON provides the foundation for understanding today’s cause movements and how to move interest in a cause into action for a cause.

In that spirit, MCON 2015 will focus on the concept of influence. Specifically, we will explore the power of influence through “art, media business and place.” In today’s super connected world, we are constantly being influenced to act. This year, we want to understand how these four industries influence people to ‘do good’ and act on behalf of an issue. We will discuss ways to bring people together, activate the next generation and create company and organizational cultures that establish openness, accessibility and transparency.

To help the audience understand the power of influence, we’re gathering an incredible lineup of entrepreneurs, activists, artists and visionaries who are influencing others to ‘do good’.

Daniel Lubetzky, founder of KIND Snacks, will headline the first night of this two-day conference. Daniel is a pioneering social entrepreneur known in the international community for developing business models that integrate social objectives with sustainable market-driven forces. He founded KIND Healthy Snacks in 2004 with the mission of making the world a little kinder, one snack and act at a time. Today, KIND is available at more than 150,000 retailers and is the fastest-growing snack company in the U.S., and the KIND Movement has inspired nearly a million acts of kindness among its community.

In the art section, we’re highlighting designers and artists whose projects have increased awareness and inspired change. Sarah Urist Green is the creator and curator of The Art Assignment, an educational video series produced by PBS Digital Studios that introduces us to the most innovative minds in art today, practicing alternative approaches to art-making. Designer Stephen Kenn will also present on some of the ideas and works that have made him one of the most sought-after artists of our time.

This year, MCON also features several journalists and media professionals who are experts in highlighting social issues. Peter Koechley, for example, served as an editor for The Onion before co-founding Upworthy. To date, the Upworthy community has dedicated nearly 2 billion minutes of attention to important stories for a better world, ranging from the criminal justice system reform to advertising’s adverse effects on body image to clean energy.

The business session will include social entrepreneurs, companies and leaders who are transforming business models to influence social change. One speaker in this session, Daniel Jae-Won Lee, Executive Director of the Levi Strauss Foundation, will present on how his organization advances pioneering social change in the areas of HIV/AIDS, worker rights and well being, asset building and social justice in communities touched by Levi Strauss & Co.’s business.

The place session features civic and cause activists who are driving community and cultural change. Fagan Harris, CEO and President of Baltimore Corps, an organization dedicated to building a stronger Baltimore by mobilizing a new generation of leaders focused on urban renewal. We’ll also hear from the co-founder and president of the Michigan Urban Farming Initiative, Tyson Gersh. Tyson uses urban agriculture as a platform to promote education, sustainability and community to solve some of the social issues currently facing Detroit.

That just scratches what will happen at MCON this year.

You’ll want to attend MCON if you are a:

  • Cause leader seeking to change the culture of your organization and better engage a new generation of cause enthusiast.
  • Cause marketer looking to build an effective platform to move individuals from cause enthusiasm to action.
  • Cause enthusiast looking to embark on a new personal journey of social good that you haven’t yet defined.

Join us at MCON June 24-25 and discover the power of influence. There are two ways to experience this year’s event. Attend in person at the Museum of Contemporary Art Chicago, or you can watch both days of speaker presentations online. Learn more and register at mcon.events.

Derrick Feldmann is the producer of MCON, the nation’s premier conference on Millennials and causes. He leads the research efforts for The Millennial Impact Project and serves as president of Achieve, a research and creative agency for causes.

Build Your BE FEARLESS Style On ReadBeFearless.com