New Frontiers of Philanthropy: A Guide to the New Tools and New Actors that Are Reshaping Global Philanthropy and Social Investing

With the resources of both governments and traditional philanthropy barely growing or in decline, yet the problems of poverty, ill-health and environmental degradation ballooning daily, it is increasingly clear that new models for financing and promoting social and environmental objectives have become urgently needed. Fortunately, however, a significant revolution appears to be underway in the way in which social and environmental purposes are being financed. The heart of this revolution is a massive explosion in the instruments and institutions being deployed to mobilize private resources in support of social and environmental objectives. Where earlier such support was limited to charitable gifts, now a bewildering array of new instruments and institutions has surfaced-loans, loan guarantees, private equity, barter arrangements, social stock exchanges, bonds, secondary markets, investment funds, and many more-all of them designed to leverage not just the tens of billions of dollars of philanthropic grants but the hundreds of billions, indeed trillions, of dollars of private investment capital. While the changes under way are inspiring and by no means trivial, however, they remain largely uncharted in any systematic fashion. This monograph, and of the companion volume for which it also serves as the introductory chapter, is designed to overcome this problem, to provide the first comprehensible and accessible roadmap to the full range of important new developments taking place on the frontiers of philanthropy and social investment. In the process, it seeks to broaden awareness of these developments, increase their credence and traction, and make it possible to maximize the benefits they can generate while acknowledging the limitations and challenges they also face. Available in OSO: http://www.oxfordscholarship.com/oso/public/content/politicalscience/9780199357543/toc.html Contributors to this volume - Directory of Participants Editor and Project Director Lester M. Salamon is a Professor at The Johns Hopkins Foundation. Project Coordinator William Burckart is the Managing Director of Impact Economy (North America) LLC. Contributors Elise Balboni recently rejoined Local Initiatives Support Corporation (LISC) as Chief Credit Officer after serving as a consultant for nonprofits and foundations in the area of charter school facility financing. Jessica Bearman works with philanthropic and other mission-based organizations, helping them become more effective and responsive to the communities that they serve. She is the author of Drowning in Paperwork, Distracted from Purpose. Shari Berenbach's thirty-year career ranges from international banking to microfinance in both the public and private sectors. She was recently named President & CEO of the US African Development Foundation after having served as Director of USAID's Microenterprise Development Office (2010-2012). Matthew Bishop is the US Business Editor and New York Bureau Chief of The Economist. He was previously the magazine's London-based Business Editor, and is also the author of 'Essential Economics'. Monica Brand is founder and Principal Director of Frontier Investments, a growth stage equity fund sponsored by ACCION International to invest in disruptive business models that catalyze breakthrough innovation in financial inclusion. Craig Churchill, Team Leader of the International Labour Organization's Microinsurance Innovation Facility based in Switzerland, is a pioneer and leader in the microinsurance field with over two decades of microfinance and microinsurance experience. He serves as the Chair of the Microinsurance Network and is on the governing body of the Access to Insurance Initiative. Rick Cohen is a correspondent for Nonprofit Quarterly magazine and the former executive director of the National Committee for Responsive Philanthropy. Bill Dietel served as President of the Rockefeller Brothers Fund (RBF), 1975-87. Prior to his time with RBF, he was Principal of the Emma Willard School, Assistant Dean and Assistant Professor at Amherst College, and an instructor of History at the University of Massachusetts. Michael Edwards is a Distinguished Senior Fellow at Demos in New York, and the editor of the web-magazine Transformation@openDemocracy. Angela M. Eikenberry is an associate professor in the School of Public Administration at the University of Nebraska at Omaha, where she also serves as the advisor for the nonprofit concentration in the MPA program. David J. Erickson is director of the Center for Community Development Investment at the Federal Reserve Bank of San Francisco and edits the Federal Reserve journal Community Development Investment Review. Peter Frumkin is a professor of social policy at the University of Pennsylvania where he directs the Masters in Nonprofit Leadership program and the Center for High Impact Philanthropy. Katie Grace is Program Manager at the Initiative for Responsible Investment (IRI) at Harvard University. Michael Green is the Executive Director of the Social Progress Imperative. Lisa Hagerman, is the Director of Programs at DBL Investors, a double bottom line venture capital firm in San Francisco. John Kohler is Co-founder of the Global Impact Investor Network (Toniic), a syndication network of worldwide impact investors. He currently serves as an Executive Fellow and Director of Social Capital at Santa Clara University's Center for Science, Technology and Society. Robert Kraybill is Managing Director at Impact Investment Exchange Asia (IIX) and a member of the Board at Shujog. Steven Lydenberg is Partner, Strategic Vision, of Domini Social Investments and Founding Director of the Initiative for Responsible Investment. Dr. Maximilian Martin is the Founder and Global Managing Director of Impact Economy and President of the Impact Pledge Foundation. Norah McVeigh is Managing Director, Financial Services, at the Nonprofit Finance Fund. Mario Morino serves as chairman of the Morino Institute and co-founder and chairman of Venture Philanthropy Partners. Dr. Alex Nicholls is the first tenured lecturer in social entrepreneurship appointed at the University of Oxford and was the first staff member of the Skoll Centre for Social Entrepreneurship in 2004. Lauren Peterson works at Abt Associates, where she supports activities designed to increase the use of risk management and financing strategies to improve access to quality health care by low-income households, and contributes to research on a variety of health finance topics in developing countries. L Luther M. Ragin, Jr. is Chief Executive Officer of the Global Impact Investing Network. Lisa Richter is co-founder and principal of GPS Capital Partners, a U.S.-based consultancy assisting large and small foundations and institutional investors to design and execute impact investing strategy. Julia Sass Rubin is an Associate Professor at the Edward J. Bloustein School of Planning and Public Policy at Rutgers University. Shirley Sagawa is Senior Policy Advisor to America Forward, a policy coalition of social entrepreneurs, and serves as a Center for American Progress fellow, and an Adjunct Professor at the Georgetown Public Policy Institute. Rodney Schwartz is CEO of ClearlySo. His background in equity research, investment banking, and venture capital makes him an unconventional but authoritative writer on the social finance sector. Durreen Shahnaz is the Founder and Chairwoman of Impact Investment Exchange Asia (IIX), the Founder and Managing Director of Shujog, and an Adjunct Associate Professor at the Lee Kuan Yew School of Public Policy. Vincent Stehle is Executive Director of Media Impact Funders, an affinity group of foundation officials and philanthropists who support public interest media. Mary Tingerthal is the Commissioner of the Minnesota Housing Finance Agency. Brian Trelstad is a Partner at Bridges Ventures, a leading developed market impact investment fund. Melinda T. Tuan is an independent consultant who is passionate about helping philanthropic organizations be more effective. Drew von Glahn oversees the World Bank's Development Marketplace, a grant based program that focuses on surfacing and supporting high performing social enterprises working in developing countries. Caroline Whistler is currently Partner for Advisory Services at Third Sector Capital Partners, where she leads client and government advisory engagements and develops customized PFS arrangements. David Wood directs the Initiative for Responsible Investment's (IRI) research and field-building work on responsible investment across asset classes.