充分发挥慈善资本的影响力：亚太和美国的案例研究（英文版）.pdf

LEVERAGING THE FULL SPECTRUM OF PHILANTHROPIC CAPITAL TOWARDS IMPACT | 1 Leveraging the full spectrum of philanthropic capital towards impact Case studies from Asia Pacific and the US2 | LEVERAGING THE FULL SPECTRUM OF PHILANTHROPIC CAPITAL TOWARDS IMPACT Published by AVPN in June 2018. Copyright AVPN & Amala Paradigm 2018. This work is licensed under the Attribution- NonCommercial-ShareAlike 4.0 International License: Leveraging the full spectrum of philanthropic capital towards impact - Case studies from Asia Pacific and the US Attribution You must give appropriate credit, provide a link to the license, and indicate if changes were made. ShareAlike If you remix, transform, or build upon the material, you must distribute your contri- butions under the same license as the original. NonCommercial You may not use the material for commercial purposes. Authors Asia Pacific Martina Mettgenberg-Lemiere, PhD, AVPN Nguyen Le Phuong Anh, AVPN Olivia Yutong Wang, AVPN The United States Ash Sharma, Amala Paradigm Grace M. Kataoka, Amala Paradigm We are also grateful to the following staff members at The Sasakawa Peace Foundation for their support and comments: Mari Kogiso, Director, Gender Investment and Innovation Department Natasha Shih, Social Investment Analyst, Gender Investment and Innovation Department Karthik Varada, Project Coordinator, Gender Investment and Innovation DepartmentLEVERAGING THE FULL SPECTRUM OF PHILANTHROPIC CAPITAL TOWARDS IMPACT | 3 About the Report Foundations are well-positioned to take the lead as market catalysts and ecosystem builders. This report documents the extraordinary journeys taken by three leading foundations in the US and five in Asia Pacific to scale their impact by leveraging the full spectrum of financial and non-financial resources.4 | LEVERAGING THE FULL SPECTRUM OF PHILANTHROPIC CAPITAL TOWARDS IMPACT Impact investment and mission-aligned investments are still at a nascent stage among foundations in Asia but is gaining traction, thanks to efforts made by pioneers in the region. For decades, endowed foundations have been operating with the traditional philanthropy financing model whereby they deploy grants on the programme side and conduct traditional investment activities on the endowment management side. Despite its long history, this model is subject to several risks. While grant-making is paramount to achieving a foundations vision, sometimes it hampers recipients incentive to seek for sustainability. On the endowment management side, without careful scrutiny, foundations bear the risk of having their assets be invested in such firms whose activities go against a foundations mission. It is time for foundations to think deeper on how they can leverage the full spectrum of financial capital towards impact. In recent years, several foundations across the globe have started to carve out a portion of their endowment for impact investments. For example, the Ford Foundation announced that it would deploy USD1 billion for impact investments over the next ten years, and the Kresge Foundation has set aside USD350 million for such investments. Drawing inspiration from such role models and by identifying the need to embrace new models of philanthropy, we at The Sasakawa Peace Foundation are taking steps to embark upon the journey of impact investing by carving out around USD100 million of our endowment and set up Asia Women Impact Fund to make investments that empower women and improve gender equality in Asia. Learning from peers is one of the effective ways to start the journey. Earlier this year, we commissioned AVPN and Amala Paradigm to conduct eight case studies in Asia and the US to learn about the various pathways of how foundations started with impact investing, and the lessons they have drawn throughout the way. We hope that this report will inform, encourage and engage like-minded peers in the region so we can together push the frontiers of impact investing to its next level. Shuichi Ohno President The Sasakawa Peace Foundation FOrewOrd “It is time for foundations to think deeper on how they can leverage the full spectrum of financial capital towards impact.”LEVERAGING THE FULL SPECTRUM OF PHILANTHROPIC CAPITAL TOWARDS IMPACT | 5 Since 2011, AVPN has been committed to building a vibrant and high impact social investment ecosystem across Asia from philanthropic foundations to impact funds, corporations and governments. Making up about 23% of AVPN membership as of 2017, foundations are uniquely positioned to leverage their philanthropic capital to foster market-based solutions to social and environmental challenges. The rise of impact investment and mission-aligned investment has opened a window of opportunity for foundations to optimise their entire portfolio, including endowments in certain cases, towards 100% impact. This report on Leveraging the full spectrum of philanthropic capital towards impact Case studies from Asia Pacific and the US, provides deep dives into eight foundations and their journeys to deploy various forms of philanthropic capital to maximise impact through direct investments and ecosystem building. In addition to documenting the different pathways, the report captures key learnings and recommendations for those aiming to embark on similar journeys. We hope that this report will be a useful resource not only for foundations, trusts and family offices, but also other organisations looking to collaborate and partner with them. We are grateful to The Sasakawa Peace Foundation for their generous partnership as well as the following members who provided valuable insights to the report: “The rise of impact investment and mission-aligned investment has opened a window of opportunity for foundations to optimise their entire portfolio”z Japan Social Impact Investment Foundation (SIIF)z Lord Mayors Charitable Foundationz Narada Foundationz Social Alpha, an initiative of Tata Trustsz The Happiness Foundation We thank Amala Paradigm for contributing three case studies on foundations in the US. Naina Subberwal Batra CeO AVPN6 | LEVERAGING THE FULL SPECTRUM OF PHILANTHROPIC CAPITAL TOWARDS IMPACT ACkNOwledgemeNTS This report would have not been possible without the generous contribution of the following individuals: Catherine Brown Lord Mayors Charitable Foundation Ron Cordes Cordes Foundation Richard Fahey Skoll Foundation Tracy Kartye Annie E. Casey Foundation Jisun Kim The Happiness Foundation Nanako Kudo Japan Social Impact Investment Foundation (SIIF) manoj kumar Social Alpha Julie muraco TBLI Group Holdings B.V. Yanni Peng Narada Foundation Robert Rubinstein TBLI Group Holdings B.V. eric Stephenson Cordes Foundation Topher wilkins Opportunity Collaboration We are grateful to the following AVPN staff members and associates who helped with connections, comments, discussions and research to shape this report: z Naina Subberwal Batraz Moushumi Banerjeez Patti Chuz Sunkyung Hanz Allison Hollowellz Ken Itoz Ruth Jonesz Amanda Keez Hana Leez Caroline McLaughlinz Meeta Misraz Binali Suhandaniz Kevin Teoz Cindy WangLEVERAGING THE FULL SPECTRUM OF PHILANTHROPIC CAPITAL TOWARDS IMPACT | 7 ABBreviATiONS ANd ACrONymS ACNC Australian Charities and Not-for-profits Commission CDFI Community Development Financial Institution CIG Capricorn Investment Group CSEIF China Social Enterprise and Investment Forum CSR Corporate Social Responsibility ESG Environmental, Social and Governance FISE Foundation for Innovation and Social Entrepreneurship GP General Partner GSG Global Social Impact Investment Steering Group HNWI High Net Worth Individual IRS Internal Revenue Service KIIN Korean Impact Investing Network LMCF Lord Mayors Charitable Foundation LP Limited Partner MRD Mission-Related Deposit MRIs Mission-Related Investments NAB National Advisory Board NGO Non-Governmental Organisation PRI Principles of Responsible Investing PRIs Programme-Related Investments SE Social Enterprise SEFA Social Enterprise Finance Australia SIB Social Impact Bond SIIF Japan Social Impact Investment Foundation SIMI Social Impact Measurement Initiative SMBC Sumitomo Mitsui Banking Corporation SME Small and Medium-Sized Enterprise SPO Social Purpose Organisation US United States VC Venture Capital8 | LEVERAGING THE FULL SPECTRUM OF PHILANTHROPIC CAPITAL TOWARDS IMPACTLEVERAGING THE FULL SPECTRUM OF PHILANTHROPIC CAPITAL TOWARDS IMPACT | 9 Key Findings Asia Pacific India Social Alpha, an initiative of Tata Trusts South Korea The Happiness Foundation China - Narada Foundation Japan - Japan Social Impact Investment Foundation (SIIF) Australia - Lord Mayors Charitable Foundation (LMCF) The United States Skoll Foundation Cordes Foundation Annie E. Casey Foundation Further Reading Glossary and Methodology About the Organisations 10 15 16 20 24 28 31 35 37 41 44 47 48 50 CONTeNTS10 | LEVERAGING THE FULL SPECTRUM OF PHILANTHROPIC CAPITAL TOWARDS IMPACT key FiNdiNgS Social investment is gathering momentum globally evidenced by the increasing multitude of players with a variety of financial instruments and methodologies. Although the size of the industry is contested, its contours are coming into focus and its growth potential is clear. The European Venture Philanthropy Association (EVPA) estimated a total capital allocation of EUR6.5 billion as of 2016. According to a 2017 survey by the Global Impact Investing Network (GIIN), the global impact investment market reached USD114 billion of assets under management. In Asia, foundations made up 23.5% of AVPN membership at the time of writing. The potential of social investment for maximising impact has motivated an increasing number of foundations to broaden their tools and adopt innovative approaches. This study looks at five foundations in the Asia Pacific and three foundations in the US and their journeys to deploy the full spectrum of philanthropic capital towards impact. Overall, foundations in Asia Pacific strive to meet the needs and address gaps in the local markets while US foundations have both an international and local focus. Asian foundations covered in this study are largely agnostic about impact areas while US foundations place emphasis on several impact areas, especially education and employment and community and economic development. The eight foundations covered in this study have moved beyond traditional grant-making to diversify financing instruments, in addition to extending non-financial support, to effectively nurture social ventures. For US foundations, legislation provides an important impetus to their journeys. In particular, the Internal Revenue Service (IRS) allows programme- related investments (PRIs) to count towards the 5% annual payout requirement that advances the mission of the foundation if “the production of income is not a significant motivating factor.” Foundations in Asia Pacific appear to be primarily driven by the lack of capital for social enterprises. They recognise that innovative solutions to social and environmental challenges might take the forms of for-profits, non-profits as well as hybrids and aim to support all. They also emphasise the need to attract mainstream investors in their journeys. Overview of Foundations Activities This study looks at eight foundations from the Asia Pacific and the US and their journeys to deploy the full spectrum of philanthropic capital towards impact. Their activities range from mission-aligned investments to building the social impact investment market at a national and global scale. They recognise that impact can be generated in multiple ways and commit to using diverse instruments towards supporting innovative solutions to social challenges. Organisational profiles The eight foundations focused on in this study are diverse in terms of countries they are based in, origins, legal registrations as well as the activities in which they are involved. Foundations in Asia Pacificz Social Alpha, an initiative of Tata Trusts, Indiaz The Happiness Foundation, South Koreaz Narada Foundation, Chinaz Japan Social Impact Investment Foundation (SIIF) (established by The Nippon Foundation), Japanz Lord Mayors Charitable Foundation (LMCF), LEVERAGING THE FULL SPECTRUM OF PHILANTHROPIC CAPITAL TOWARDS IMPACT | 11 AustraliaFoundations in the USz Skoll Foundationz Cordes Foundationz Annie E. Casey FoundationWhile there are commonalities among US foundations which are registered as 501(c)(3) charitable organisations that are tax exempt, Asian foundations are legally registered in different ways. The Happiness Foundation and Narada Foundation are set up as private corporate foundations while SIIF is in the process of obtaining a public organisation certificate as of April 2018. SIIF was established by The Nippon Foundation which is a public foundation that deploys revenue from boat racing activities. LMCF is a registered charity that receives funds from bequests and public donations. Social Alpha is a special case as it is registered as an Alternative Investment Fund under the Regulation 2(1)(b) of Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012. It was, however, established by the Foundation for Innovation and Social Entrepreneurship (FISE), a Section 8 entity under Tata Trusts, one of the most respectable public charities in India. Key Activities While the Annie E. Casey Foundation in the US and Asian foundations primarily focus on the countries they were established in, Cordes Foundation and Skoll Foundation are also active outside the US, especially in emerging economies. In terms of sectors, Skoll Foundation, Cordes Foundation, Annie E. Casey Foundation and LMCF focus on the following key areas:z Education and employment Annie E. Casey, LMCF, Skollz Affordable housing Annie E. Casey, LMCFz Community and economic development Annie E. Casey, LMCFz Environmental sustainability LMCF, Skollz Health and ageing LMCF, Skollz Micro and small business financing Annie E. Casey z Financial services Cordesz Women empowerment Cordes South Korea-based The Happiness Foundation and China-based Narada Foundation are largely sector agnostic. Social Alpha supports for-profit ventures that apply a science and technology-based model to solve social issues, especially in underinvested areas. SIIF focuses on building the social impact investment market in Japan by investing in impact funds, supporting intermediaries and launching social impact bonds (SIBs). How do Foundations Optimise Philanthropic Capital for Impact? The eight foundations covered in this study have moved beyond traditional grant-making to support and scale social innovations with a full spectrum