A Hot Summer for Impact Investing

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.

Business as a Force for Social Good

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

The Power of Influence: Get Ready for MCON 2015

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.

A Fearless Approach to Ocean Conservation

Earlier this month, I found myself in a sea of sleepy-eyed millennials in a Georgetown University auditorium waiting for the first annual Sustainable Oceans Summit to begin.

The Sustainable Oceans Alliance (SOA), founded by Georgetown student and Case Foundation intern Daniela Fernandez, hosted the summit. SOA is one of the first student-led initiatives started in direct response to U.S. Secretary of State John Kerry’s call to action at the State Department’s 2014 Our Ocean Conference. In his speech, Kerry laid out the crucial steps each of us must take to ensure the health and sustainability of our oceans.

The opening announcement quickly set the tone for the event – we were going to learn exactly how we, as individuals, could change the tide. After seven hours of remarkable speeches and panel discussions from world leaders in ocean conservation, environmental policy and earth and biological sciences, the 400 in-person and hundreds more webcast attendees were indeed invested in keeping our planet blue.

Speakers like the legendary Sylvia Earle from Mission Blue and Maria Damanaki of The Nature Conservancy eloquently illustrated the interplay between the health of our oceans and the health of humankind. “We must protect our oceans as if our life depends on it – because it does,” said Earle. “Eighty five percent of corals are already lost; eighty five percent of fish are endangered, threatened or already gone,” stated Damanaki. After a long pause to let those statistics sink in she went on, “But there is hope in this hopeless situation. Human activity is ocean’s biggest threat and biggest hope. We have the power to change the fate our planet’s lifeline.”

An important focus of the summit, and a reflection of Fernandez’s interest in identifying multi-sector solutions, was the role of three vital industries: science and technology; corporations; and local and national governments. The summit proposed that by exploring the interconnectedness of ocean health and human behavior and wellbeing, these three sectors could realize a range of opportunities for innovative collaboration. The summit provided a new platform for champions of ocean conservation to highlight these opportunities: better business practices, effective legislation and cutting edge technology. The speakers emphasized how multi-sector approaches catalyze solutions to issues such as the global fisheries crisis.

The summit attendees were asked to do more than listen, and 7,500 signatures later the audience and social media activists had successfully made their voices heard. Together, we petitioned the United Nations to include ocean sustainability as a Sustainable Development Goal (SDG). SDGs are a comprehensive collection of actionable, social development goals designed to build upon the Millennium Development Goals (MDGs). SDGs should holistically address social inequalities, issues of poverty and environmental concerns, and it is essential that responsible ocean management does not get left out.

Palauan Ambassador, Stuart Beck, will deliver this very petition directly to the U.N. Secretary General Ban Ki Moon prior to the September 2015 vote to confirm the SDGs. We made our mark; but if the speakers made anything clear, it was that our mission doesn’t stop here.

As the summit came to a close, I found myself in a new environment – in a sea of wide-eyed millennials in a Georgetown University auditorium. We knew that it was our responsibility to take action now. Our naturally innovative and motivated spirit must be directed toward ocean sustainability to ensure a healthy and stable environment, economy and global community for future generations to come.

 

 

Click here to watch the full Summit. 

Five Key Ways Social Good Organizations can Engage with Millennials on Facebook

This post was written by Meg Rulli on behalf of the Case Foundation:

One of the many benefits to being a social enterprise is that the powerful work you’re doing is incredibly interesting to others – and others want to get involved.

This is especially the case when it comes to your organization connecting with the Millennial community. According to Deloitte’s third annual Millennial Survey conducted in 2014, 63 percent of Millennials donate to charities, 43 percent actively volunteer or are a member of a community organization and 52 percent have signed petitions.

And do you know where those Millenials spend a ton of time? The answer is online—engaging with others and with content on various social networking platforms such as Facebook.

How can you best connect with this passionate community when it comes to your strategy for Facebook marketing?

I’ve highlighted five simple tips you can use to ensure your organization’s reach within the Millennial community is maximized on Facebook. For even more Facebook marketing tips and case studies for social enterprises, you can download the free Facebook chapter from my book, Get Social – The Ultimate Online Marketing Guide For Social Good.

Five Key Ways for Social Good Organizations to Engage with Millennials on Facebook

1. Use photo heavy content for visual storytelling – Visual content is the most popular content to share on Facebook, so use this social network as a place to share your story and stir emotions in the millennial community. Let your work shine on your Facebook page through photos with inspiring quotes, photos of your local events, photos of employees at the office, and photos of your volunteers collaborating with your organization. For even more reach on your Facebook posts, be sure to tag people in pictures, which will bring visibility to your organization through these individuals’ personal networks.

2. Share emotionally moving statistics and information – Millenials want to be apart of initiatives that create change and improve the world. Entice them to rally behind your organization with powerful statistics and information related to your organization. To go along with this, share news on Facebook about celebrities and influential leaders rallying behind similar causes to your own.

3. Connect your Instagram and Vine accounts to your Facebook page and cross promote – While Facebook is still a huge social media platform for Millennials, social networks such as Instagram and Vine are big for younger generations. Be sure to have a social media presence on these platforms (if your audience is located there) and connect your content on Instagram and Vine on your Facebook page. This is an easy way to share even more visual content on your page and will help you bring your Facebook fans over to these other social networks.

4. Share your events and community outreach initiatives on your page (as well as local events related to your cause) – When it comes to helping social organizations, Millennials want to be in the trenches. They are excited to get out and engage with their favorite organizations and causes. Take advantage of their social butterfly tendencies and leverage your Facebook page to share fun events hosted by your organization and related community outreach initiatives in your local area.

5. Gamify your Facebook page – Millennials are competitive and are always looking for fun ways to rally with their friends around their passions. Harness this energy by creating contests to advertise on your Facebook page (i.e., contests for fundraising efforts), poll your audience in your status updates, host giveaways on your page… Get creative and make sure you Facebook page ENGAGES your audience.

Your turn: What tips do you have for connecting with your millennial audience on Facebook? We’re always looking for suggestions from our community, so please share with us on Twitter!

For more pro tips and case studies on how to connect with Millennials on Facebook, be sure to download the free Facebook chapter from Get Social – The Ultimate Online Marketing Guide For Social Good.

Meg is the Co-Founder of ModMark Group – a marketing and PR agency working with social good companies to grow their communities and expand their global impact. “Carpe diem” is her favorite cliche and motto. Meg is a high-energy girl living in Portland, OR, that loves traveling, being active, spending time outdoors and eating (A LOT)!

The Future of Your Nonprofit Organization And Why You Need to Join This Conversation

Written by Derrick Feldmann on behalf of the Case Foundation: 

“Why do you care so much about Millennials?”

A person in the audience at one of my recent speaking engagements asked me this question in relation to my research, The Millennial Impact, and the book I co-authored, Cause for Change: The Why and How of Nonprofit Millennial Engagement.

Seems like a reasonable question, but some of you may be surprised by my answer:

I care about Millennials getting involved in causes, but I care more about the state of the organizations that are trying to make a difference in our communities. I worry they are not prepared to engage Millennials who want to be involved and have not adapted to the growing business changes this generation and others are demanding, such as: transparency, real time reporting, digital connectedness, and collaborative leadership.

Lets face it. Today we are dealing with a whole new way to do business and social sector work that is playing an increasingly important role across sectors.

We have websites that allow us to connect with anyone needing help in communities we never heard of or have ever dreamed of visiting.

I can watch polar bears in the Arctic in real time to see what is happening to their ecosystem, and if so moved can support efforts to preserve their habitat with several clicks of a button.

The concept of workplace teams now means a team of individuals not based on location, but rather brought together by talent and expertise.

We hear about tragic news—such as the Boston bombings—one second after it happens in less than 140 characters.

This is not meant to scare us, but rather to help us change the way we operate … in order to easily invite anyone from anywhere ‘in’ who wants to help, or respond when asked by our constituents to react to local needs, and innovate when necessary.

Why so much attention on Millennials?

It’s simple.

  • They are the largest generation with more than 80 million in their ranks.
  • Their consumer discretionary spending amounts to $300 billion each year.
  • They are entering our workforce and as a result other generations are finding themselves challenged by this generation’s work/life blending concept.
  • They want to conquer the world.

Perhaps most importantly, they want to accomplish all of this regardless of what existing institutions are already trying to do. For some, this “Millennial” approach may be frustrating, while for others this only adds to the intrigue of this generation and increases their desire to find common ground with Millennials.

The bottom line is that Millennials want the same thing you do—to offer ideas, be challenged, and to create solutions to our pressing problems. They want to be involved in causes, but not every organization is open—open to the ways the generation seeks to be involved. Nor are they open to the idea that today’s public expectation is that the organization is more human and transparent than ever before. Millennials are knocking on the doors of these organizations and asking them to listen. Unfortunately, we see that some organizations shut them, and any generation that disagrees, out with the way they do business.

So then the question is whether or not all generations of constituents, volunteers, staff members, and leaders for a common good in our communities (however you define that community), can find a way to work together in order to reach the impact we all desire.

The answer is that we have to, because if we don’t, we run an even bigger risk. Jean Case, CEO of the Case Foundation, put it eloquently in the foreword of Cause for Change:

“If government or nonprofits aren’t moving fast or being effective, Millennials will channel their efforts through corporations or communities. And if corporations and communities aren’t working they’ll use their dollars, followers, and friends to demand change or to support those institutions that are making change happen on their terms.”

Rather than perpetuate the ongoing development of more organizations, why not find better ways to get Millennials and organizations working together?

So then what’s it going to take?

Organizations interested in operating differently—more openly, creating more collaborative work and constituent environments, and refining how external audiences can communicate with, involve and give so it is easier, faster, and more trustworthy.

At the same time, Millennials must be willing to come to organizations with better expectations of how institutions are ever evolving. This is a time of evolution where change does not happen overnight. Millennials must recognize that organizations possess much of the historical knowledge of community building and valuable ability to address needs.

We need an environment where both sides can excel with each other. Where conversation and dialogue about the newest ways to build these movements and how organizations can adapt.

That is why we built MCON—a platform to create dialogue among executive leaders wanting to engage the Millennial generation, but who need assistance to get going. MCON is a day of thought leadership from both Millennials and non-Millennials talking about their experiences, sharing what has failed, and collaborating on ways in which they will innovate as they go about their journey of redefining their organization. This year, MCON13 will take place on July 18 both online (FREE livestream) and in person (register) in Indianapolis, IN.

After MCON13, the conversation will continue with some of the best leaders and practitioners who are actively using social media, service and fundraising techniques to engage Millennials. This 12-month program, MI Talks, is included with every in person or online paid ticket to MCON. Participants will build upon the thought leadership gained at MCON13 with specific strategies and tactics from organizations such as Crochet Kids or Water.org.

I know the generation may frustrate you and make you work hard for their dollars and time, but trust me, magic truly happens when Millennials and organizations come together for a common good. Join us at MCON13 to hear how your organization can get started with a new approach to how you work with and for a generation that is ready and waiting to be engaged.

Register to attend MCON in person or online on July 18 at themillennialimpact.com.

Derrick Feldmann is the CEO of Achieve Guidance. You can follow him on Twitter @derrickfeldmann.