Executive Director, Mary Reynolds Babcock Foundation
FAQ
Q. What portion of a foundation’s assets does the Campaign target?
A. The goal of the Campaign is to have more foundations invest a % of their “corpus” or endowment funds—the foundation’s core operating funds and income generation – the 95% of a foundation’s assets not required to be disbursed through grants to maintain a foundation’s tax-exempt status.
While the goal of the Campaign is to generate additional capital flows from the foundation’s endowment funds, an increase in their PRIs (that may be counted to the 5% annual payout by the IRS to maintain tax-exempt status) would be considered an increase in mission investing strategy and practice.
Q. What if foundations are only interested in market-rate vehicles?
A. In our experiences, mission-related investments that embrace traditional asset allocations class objectives and risk parameters can be identified. Each of the foundations leading this Campaign has experience with market-rate returns on mission investments. One of the advantages to signing on to the More for Mission Campaign is to learn about the experiences of other foundations and determine the types of investment products and services that best suit the needs of your organization.
Q. What kinds of investments qualify as “mission investments”?
A. Mission investments contribute concretely to foundations program goals while also providing financial returns. These investments include the full spectrum of both market-rate and below-market investments. Mission investing is the proactive quest for specific lending or investment opportunities that are capable of producing outcomes consistent with a foundation’s program goals. The critical component is the relationship between the anticipated social outcome of the investment and the investor institution’s mission.
Q. Can foundations that engage in shareholder advocacy participate in the More for Mission Campaign?
A. Certainly – shareholder advocacy is an established means of leveraging financial assets to engage on issues of concern, and foundations are well-placed to make the connection between their mission goals and their long-term financial interests.
Q. What types of foundations does the Campaign target?
A. Private foundations, corporate foundations, and community foundations.