How Robert Wood Johnson And McKnight Are Rethinking ESG For Foundations

credit: Violet Evans via Deviant Art

For some foundations, making ESG investments isn’t enough.

At least two organizations have gone a step further and set up separate pools of capital that can only be invested in accordance with their missions.

The McKnight Foundation set aside 10% of its $3 billion portfolio in 2014 for an impact investing pool. Four years later, that pool has grown to $200 million, with 40% of the endowment invested in investments that align with the foundation's mission, Fortune reports.

One example is McKnight’s investment in Arcadia, a utility company that helps both renters and homeowners in any state buy renewable power for their homes.
"We like that it creates an option for renters, who are often excluded from renewables," says Elizabeth McGeveran, the foundation's director of investments. "And in some markets, Arcadia can save you money on your utility bill, [while] in other markets it's about the same. They're building community solar to feed into the grid."

Another foundation, the Robert Wood Johnson Foundation, has set up a $200 million impact investing pool, and it's investing in everything from small businesses to research on social bond issuance, Fortune reports. "Every pension fund has exposure to social bonds," says Kimberlee Cornett, the RWJ's director of impact investing. "One of the things that the market doesn't easily make visible is who an issuance is benefiting and how that's being repaid."

Read the Entire Article

How's Your Community Doing?
Check Out it's
Community Vital Signs

Impact Investing Global Market Is Likely to Upsurge $1061.14

The global impact investing market was valued at $478.15 billion in 2023, and is expected to reach $550.52 billion by 2024, at a compound annual growth rate (CAGR) of 15.1%, according to a new...more

Delta Green Raises ‚¬2.2M to Revolutionize Household Energy Management Across Europe

A startup in the Czech Republic is hoping to change the way people think about energy. Delta Green, formerly known as Nano Green, says it has received $2.2 million in funding to expand into...more

Around Town: Connect Beyond Festival Celebrates Art That Inspires

Richard II is coming to the Asheville, NC, stage this summer. The Montford Park Players will perform the English king's rivalry with his successor, Henry IV, in the 2024 season, titled Muse of...more

The Restaurateur Who Created a Safe Space for Celebs to Dine

When Dara Mirjahangiry met Kevin Durant at a Brooklyn Nets game, the basketball star was looking for a place to hang out "after the game, somewhere where I can go and feel like it's almost like a...more

Sallie Bingham, Foundation She Endowed Face Off in Court over Future of Hopscotch House
Foundation: Kentucky Foundation for Women

When the Kentucky Foundation for Women bought a 412-acre farmhouse in Jefferson County, Ky., in 1987, it hoped the five-bedroom dwelling would serve as a retreat for women writers and artists,...more

Earmarks Are Never A Winning Political Strategy

When the Kentucky Foundation for Women bought a 412-acre farmhouse in Jefferson County, Ky., in 1987, it hoped the five-bedroom dwelling would serve as a retreat for women writers and artists,...more

Nextgen Healthcare to Support Ohio Nonprofit'S Delivery of Whole-Person Care for Children ...

"The integration of whole person care across our service lines is at the core of our mission and service strategy. After an exhaustive review process, it was clear there was only one partner who...more

Successful Leadership Requires Women of Color to Be Financially Confident

"It has been reported that as many as 80% of adults in the United States have never learned about personal finances," writes Nataliya Vaitkevich in Nonprofit Quarterly. "Leaders of color may be...more

Free Nonprofit Training on Volunteer Recruitment, Management
Foundation: Logan Healthcare Foundation

If you're looking for a way to give back to your community, West Virginia may have just the training you're looking for. The Pallottine Foundation of Huntington, in partnership with the Logan...more

Reclaiming the Narrative in African Philanthropy: A Community-Based Organization'S Perspective

There's been a huge shift in philanthropy in Africa over the last few years, and it has nothing to do with international donors. Instead, community-based organizations (CBOs) are taking the lead...more