Handbook on Using Investment Dollars to Create a Positive Social Effect

NEW BOOKS

Philanthropy’s New Passing Gear: Mission-Related Investing: A Policy and Implementation Guide for Foundation Trustees
by Steven Godeke and Doug Bauer

With assets of more than $600-billion, the 72,000 foundations in the United States “must unleash more of their resources, not fewer, to achieve positive impacts that change communities and societies. To do that means thinking beyond the 5-percent payout and considering all alternatives,” write Steven Godeke, an investment and philanthropy consultant, and Doug Bauer, senior vice president of Rockefeller Philanthropy Advisors.

One promising idea is “mission-related investing,” which “encompasses any investment activity which seeks to generate a positive social or environmental impact in addition to providing a financial return,” the authors write.

This publication outlines what investments fit this approach and how to incorporate them into a foundation’s operations. Written primarily for donors, philanthropy trustees, and foundations’ executive and program staff members, the guide offers a discussion of the technicalities, challenges, and language involved in efforts to align investments and grant-making priorities.

The authors explain components of this investment approach, like proxy voting, screening, portfolio monitoring, and shareholder resolutions.

Also included are 12 case studies of foundations that coordinate their grant-making and investing priorities, like the W.K. Kellogg Foundation, the Kalamazoo Community Foundation, the David and Lucile Packard Foundation, and the Boston Foundation. Additionally, documents to help research, plan, and evaluate investments can be found in the report’s appendices.

Publisher: Rockefeller Philanthropy Advisors, 6 West 48th Street, 10th Floor, New York, N.Y. 10036; (212) 812-4330; fax (212) 812-4335; http://www.rockpa.org; 131 pages; available free for download on the organization’s Web site.