Published by Rockefeller Philanthropy Advisors
Policy manual offers comprehensive information to launch effective MRI programs
NEW YORK (March 7, 2008) - Rockefeller Philanthropy Advisors has announced the publication of a comprehensive, practical guide that translates the concepts, ideas and philosophy of Mission-Related Investing (MRI) into useable policies and practices for foundation trustees.Building on a growing body of knowledge and practice areas,
Philanthropy’s New Passing Gear: Mission-Related Investing marks the first comprehensive implementation guide available to ensure the effective launch of an MRI program and its integration with existing policies and processes. “Foundations in the United States have $600 billion in their endowments and can unleash more of their resources to positively change societies today. As a result, mission-related investing is an idea whose time has come,” said Doug Bauer, senior vice president of Rockefeller Philanthropy Advisors and a co-author of the guide with Steven Godeke, a noted expert in the field. “An MRI program can be daunting to execute,” says Godeke. “Our goal is to provide the knowledge and tools that enable foundation trustees and executives to be energized by the opportunities and outcomes that MRI makes possible, and to move philanthropy into a new leadership position for effecting change.”Broadly defined, mission-related investing encompasses any investment activity designed to generate a positive social or environmental impact in addition to providing a financial return. It is receiving attention, in part, because the field of philanthropy has changed dramatically and donors of all types and sizes are recognizing that traditional grantmaking models are neither the sole route, nor always the most effective one, to achieving social impact. In fact, industry pioneers are advancing entrepreneurial, market-based approaches to creating social capital and impact that often involve a foundation using endowment assets in excess of the usual five percent allocation to grants. According to Bauer, there is also an increased interest to change operating structures, rethink grantmaking efforts, and to foster collaboration between program and investment professionals on advancing new philanthropic models like MRI.
Philanthropy’s New Passing Gear: Mission Related Investing outlines how foundations can:
- Ground a strategy within their values and mission;
- Understand various catalysts for MRI;
- Structure a policy discussion in the boardroom;
- Integrate MRI into existing program and investment processes;
- Link investment asset allocation with program goals;
- Determine the appropriate MRI investment tools and strategies;
- Select program and investment consultants;
- Organize their board, staff and consultants to find, evaluate, approve and execute MRI investments;
- Monitor investment performance of an MRI portfolio; and ultimately,
- Integrate social returns into the ongoing investments and program decisions of the foundation.
“What we’ve learned from our research and our work with the pioneers in this field is that a modest start in MRI can have great impact,” continued Bauer. “This book will be essential to helping with those first critical steps and building ongoing support for an MRI strategy. Foundations can not and should not wait for a perfect system.”
Philanthropy’s New Passing Gear: Mission-Related Investing includes 12 case studies that reflect the diversity of approaches used by organizations currently practicing MRI such as The F.B. Heron Foundation, W.K. Kellogg Foundation, KL Felicitas Foundation, Robin Hood Foundation, the New Hampshire Community Loan Fund and The Russell Family Foundation. The guide and its appendices also contain tools and templates for creating and executing MRI strategies.
“There is little that is more exciting in philanthropy today than mission-related investing. By putting investment assets to work for mission, MRI allows trustees to uphold their fiduciary duty while increasing the effectiveness of foundations in serving their mission. This excellent guide goes a long way in showing us how to do it,” said William Dietel, Special Counsel and former Chairman, F.B. Heron Foundation.
Additional underwriting for the project was provided by the Flora Family Foundation and the Woodcock Foundation. Philanthropy’s New Passing Gear: Mission-Related Investing, A Policy and Implementation Guide for Foundation Trustees, is available at no cost by contacting info@rockpa.org or calling 212-812-4369. A PDF can also be downloaded from www.rockpa.org.
About Rockefeller Philanthropy Advisors
Rockefeller Philanthropy Advisors (www.rockpa.org) is an independent, nonprofit service that develops and manages effective giving programs for individuals, families, foundations and trusts. In 2007, Rockefeller Philanthropy Advisors advised on more than $165 million in giving in 30 countries. Headquartered in New York City, with offices in San Francisco and Los Angeles, it traces its antecedents to John D. Rockefeller, Sr., who in 1891 began to professionally manage philanthropy “as if it were a business.” He set the style of family giving by specifying that grants would be used “for the well-being of people throughout the world.” Rockefeller Philanthropy Advisors also includes The Philanthropic Collaborative, a special charitable gift fund vehicle managed solely as a service to clients.
About Godeke Consulting
Godeke Consulting (www.godekeconsulting.com) is an independent investment advisory firm which works with foundations, corporations, and non-profit organizations to integrate their financial and philanthropic goals. Founded in 2001, it advises clients on the creation and execution of mission-related investment strategies across asset classes and program areas. Its services include strategy development, due diligence, negotiation, and documentation of mission-related investments, investment manager searches, and portfolio performance measurement. Clients include The Rockefeller Foundation, Robin Hood Foundation, The Conference Board, The F.B. Heron Foundation, The Altman Foundation, Common Ground, The World Economic Forum and corporate clients in the financial services and pharmaceutical industries.