Monterey, CA Some Foundations Meld Non-Profit And For-Profit Investments To Promote Their Vision
by Richard Kuehn on 12/13/12
View From A Non-Profit Serving Carmel,
Carmel Valley, Gonzalez, Greenfield, King City, Marina, Monterey, Pacific
Grove, Pebble Beach, Salinas, Seaside And Soledad California
There
was an interesting story in the New York Times this week about the W. K. Kellogg
Foundation and its investment strategy. Foundations are non-profits, many of which
don't actively raise money (although some do) but rather invest money which has
been donated from a wealthy person or family.
They give away a percent of the foundation's money each year, but the
goal is not to use all of the money each year on non-profit programs, but rather
to grow the fund so there is more income to give away each year. The W. K. Kellogg Foundation was started in
2007 with $100 million with the goal of investing in companies that could
produce both social and financial benefits, rather than investing in stocks and
bonds. They have been able to invest in
for-profit companies which are aligned with their goals, which has enabled them
to have more money for their charitable donations. And they've been very successful at it. For instance, in 2010, it invested $5 million
in a company called Wireless Generation which was a small educational software
maker trying to improve public education in New York City. Less than a year later, it received a 26%
return on investment after News Corp. bought the company for $360 million. This foundation is a great success story
about how you can meld a non-profit with for-profit investing to promote the
greater good. I wish them and other foundations
success in this strategy of furthering their social mission by making wise and
profitable investments. If you would
like to support our mission, we are currently doing a fundraising
campaign. I am proud that we were chosen
by Monterey County Weekly as one of the charities highlighted in their annual
Monterey County Gives program. If you
can afford to give, please donate via the below web site as there are matching
funds available via this great program.
The way it works is, there is $100,000 in matching funds and it will be
divided pro-rata amongst the participating organizations based on how much they
raise. So please help us stay in the top
ten fundraisers by clicking here.
Please note that this blog reflects my personal opinion and may or may not reflect the opinion of Hands To Help Seniors and the individual members comprising the Board of Governors.
