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Finding Philanthropy’s Sweet Spot Kristen Burns, President REDF May 16, 2006

Finding Philanthropy’s Sweet Spot Kristen Burns, President REDF May 16, 2006. Meet Ted. The good news Many types of organizations and individuals have goals that include accomplishing a social mission. Nonprofit organizations. Social service expertise

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Finding Philanthropy’s Sweet Spot Kristen Burns, President REDF May 16, 2006

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  1. Finding Philanthropy’s Sweet Spot Kristen Burns, President REDF May 16, 2006

  2. Meet Ted

  3. The good news Many types of organizations and individuals have goals that include accomplishing a social mission. Nonprofit organizations • Social service expertise • Primary goal of achieving positive social outcomes • Often financially constrained Ted (and others like him) Foundations Social entrepreneurs • Can make grants and/or invest assets • Varying degrees of non-financial support • Well-positioned to strengthen non-profit organizations • Business expertise • Creativity in developing double or triple bottom line solutions • Hands-on role Socially-minded for-profit investors • Financial return important • Varying levels of interest in social return

  4. The challengeWith so many possible participants in the solution, how can resources be maximized – while still accommodating each entity’s needs and limitations? Social goals Financial goals Desire for equity investment model Nonprofit structure Planning support Capital investment Business acumen Social mission expertise

  5. General operating support • Collateral for line of credit • Capacity-building activities (e.g., financial systems, social outcomes measurement and analysis) Juma Ventures (nonprofit) Evergreen Lodge (for-profit) • Farber Internships and Fellowships • Family-oriented hotel bordering Yosemite National Park • Youth development program serving at-risk 18-24 year olds from San Francisco The Phalarope Foundation • Farber Internships and Fellowships Equity and debt investors • Commercial loans • Equity investments from private investors – both individuals and The Roberts Foundation (REDF’s former parent) The creation of Evergreen LodgeEach entity identified and played a role that matched its “sweet spot.” Farber Fellows Lee Zimmerman & Brian Anderluh

  6. Investors’ varied needs are met The resultEvergreen Lodge is succeeding in meeting both financial and social goals. • Financial/business performance • Frommer’s Guide (2005) Favorite • Over 90% occupancy throughout peak season • $4M annual revenues, ~30% EBITDA • On track to provide 15% return to equity investors • Making first equity distribution of $300K this year • Social performance • Four-part on-site youth program: • Employment and training • Individualized social service support • Outdoor recreation • Healthy residential community • 12 youth internships each year, 50 youth served to date • Successful transitions into adulthood for graduates, including significant increase in employability, wages, and stability

  7. Ted’s progress

  8. Lessons • Different philanthropic investors have different sweet spots. • When philanthropic investors identify, articulate, and develop their own sweet spots – as for-profit investors have – it creates new social and financial opportunities. • Collaborations among philanthropic investors can generate creative and powerful models for affecting social change.

  9. www.evergreenlodge.com www.jumaventures.org www.redf.org

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