More for Mission

Family Foundations Help Fuel Growth of Mission Investing

by Lisa Hagerman, Thursday, February 18, 2010

According to a recent article in Private Asset Management, families have begun reevaluating their philanthropic programs due to recent portfolio declines and are supplementing their grant-giving with income-generating investments. In the article, Lisa Hagerman, Director of More for Mission, says that "family interest in MRI is now growing faster than interest from the larger foundations, mainly because families have smaller boards and direct donor involvement that can implement MRI ideas faster." The article also reports that some families are funneling more of their assets annually into mission investments ranging from publicly-traded solar tech names to subsidized below market rate investments.

More for Mission Leaders Circle member, The Russell Family Foundation is a prime example of this trend. Starting with a $1M pilot mission investment allocation in 2004, the foundation has expanded that pool to $10 M and now invests approximately 8% of its endowment in mission-related investments. Richard Woo, Chief Executive Officer, of The Russell Family Foundation spoke of TRFF's experience in mission investing at the recent Council on Foundations annual Family Philanthropy Conference in San Diego. He was joined in a session dedicated to mission related investing by Craig Muska, Investment Advisor at Threshold Group (TRFF’s investment advisory firm) with Peter Berliner, Managing Director, PRI Makers Network http://www.primakers.net/home moderating the conversation. The turnout was great with about 70 foundation leaders and investment advisors at the workshop. According to Woo the Q&A session was lively with lots of interest and thoughtful questions from the audience. One particular audience comment noted that the transparent and collaborative relationship between The Russell Family Foundation and its investment advisor, Threshold Group, is crucial to aligning the foundation’s social and financial goals. Woo believes: “If we expect to align our philanthropic mission with our investment goals, then we need to work hard to ensure greater alignment between our program staff and our investment advisors. That is the operating system that makes MRI work.”

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