Two Years On, Foundations Stand By Issuing Bonds In Pandemic

credit:

When the Ford Foundation took the unprecedented step in June 2020 of issuing $1 billion in debt to help stabilize other nonprofits, it delighted investors and inspired several other large foundations to follow suit.

Two years later, the foundations all stand by their decisions to take on long term debt, allowing several to essentially double the amount of their grantmaking, the AP reports.

But they also caution they are unlikely to repeat the move any time soon.

The foundations mostly issued social bonds ranging from $100 million to Ford's $1 billion.

The unusual move allowed them to increase their donations and take advantage of favorable market conditions, instead of dipping into their endowments.

As of June this year, the Ford Foundation has spent more than 90% of the funds it raised in its only bond offering, with 70% of the grants so far going to organizations led by people of color and 87% going to general support, meaning the funds could be spent any way the organizations wanted.

"It just let us put on steroids something that we wanted to do anyway," says Hilary Pennington, an executive vice president of the Ford Foundation.

Greg Ratliff, senior vice president at Rockefeller Philanthropy Advisors, says issuing bonds was an innovative use of the foundation's assets.


Read the Entire Article

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

Aapi Entrepreneurs Embrace Cultural Heritage To Be Stronger, More Authentic Leaders

"I didn't want to acknowledge any life challenges I had along the waywhich left me feeling burnt out from not showing my whole self," says Trish Boes, founder and CEO of UnlimitMe. But now, she...more

Promoting Hong Kong As A Regional Philanthropic Hub Through Co-Creation
Foundation: Gates Foundation

One of the world's richest men is pushing to make Hong Kong a "philanthropic hub" in the region. The city's chief executive, Leung Chun-ying, says he wants to make it "a bridge between China and...more

Okey Anueyiagu… a Peep into the Life of a Philanthropist, Writer and Entrepreneur

The son of one of Nigeria's most revered nationalists, Chukwuma Anueyiagu, says his father's death in 2014 left him little time to reflect on his own lifebut he's determined to see his father's...more

Fire Breaks out in Sundarbans

The world's largest mangrove forest is on the verge of becoming a ghost forest. Fires are raging in Bangladesh's Sundarbans forest, which is also home to the Royal Bengal Tiger, and firefighters...more

Anitha Rao: Busting Taboos One Period at a Time

"When I belong to an educated family and nobody told me about menstrual hygiene, how would those living in rural areas and slums know," Anitha Rao says. That's why the 40-year-old social...more

Chikamhi'S Book Inspires, Empowers Smes

"When I came to Harare from Zaka, I had nobody and knew nobody, but I had to define my career path and carve my own niche, hence the confidence that all these important people here now have in...more

Science Research Program at Joplin High School Recieves $5000 American Water Grant

A Joplin, Mo., high school's science program is going to be able to keep going thanks to a $5,000 grant from the American Water Charitable Foundation. The money will be used to fund future...more

Nsf Emphasizes Quantum'S Importance in Congressional Showcase

The National Science Foundation held a "quantum technology showcase" on Capitol Hill this week to highlight research funded by the federal government into things like quantum computing and...more

Illinois American Water Recognizes American Water Charitable Foundation 2024 Water and ...

Illinois American Waterthe largest regulated water and wastewater utility in the USis making a splash in its home state with a $200,000 donation to help clean up the Ohio River. The utility has...more

Princeton High School Ffa Chapter Awarded Grant

A high school FFA chapter in North Carolina is getting $15,000 to add a Horticulture storage facility and potting area to its school greenhouses, the Herald-Sun reports. The North Carolina...more