I had a great time on Wednesday leading a webinar hosted by GuideStar on my Ten Predictions for the Next Ten Years post. Thanks to everyone who tuned in!
The question and answer section of the discussion was not long enough. So here are some parts of the discussion we didn’t get to on Wednesday. There’s more Q & A my blog at Philanthropy2173 – you can log into that part of the conversation here.
Question: Can you say more about Impact Investing?
Impact Investing is the active form of socially responsible investing. It includes loans, equity stakes, and other kinds of investing in companies that produce both financial return and social returns. The Global Impact Investing Network has great resources available on their website. Recent estimates of the size of Impact Investing peg it at as an asset class that could grow to be $1 trillion in size by 2020. You can also get more information at Social Capital Markets. Impact Investing was one of the key buzzwords of the past decade. The sector will continue to grow and become more important in the next ten years.
Question: What else can you tell us about Spend Down Foundations?
More and more donors are establishing very large foundations earlier in their lives. Donors are also very concerned with the scale of social challenges we face now, and are trying to be as effective as they can be. These factors and others lead to my prediction that we’ll see more foundations established with a set “end date” – that is they will be endowed, but not set up to last in perpetuity. The Bill and Melinda Gates Foundation has an end date of 50 years after the death of the last of the two founders. The Atlantic Philanthropies is currently in spend-down mode, and there are some very interesting resources on their work and process available here. The Quixote Foundation recently chose to spend “up” its endowment – a nice semantic touch because the Foundation’s decision to spend all of its assets came from the founders’ view that the needs were great and the Foundation should go “full tilt” or “spend up” into the work.
There’s more Q & A over at Philanthropy2173. You can get more information in the Blueprint 2011 document – available in hard copy here and for download at Scribd. Thanks for joining the conversation. Here’s to a great decade to come!