Amid a national conversation about democracy, we in California see the opportunity to invest more fully to realize our nation’s promise of wellness, inclusion, and shared prosperity for all.
That is why our three organizations are committed to going “All-In.”
To us, “All-In,” means that our institutions have begun the process to ensure that every investment we own or deploy is, in some way, serving the purpose of our respective missions in the community. This extends the reach of our financial assets beyond grants to include investments in small businesses, emerging women’s and minority-led firms, healthy food opportunities, health-promoting technologies, affordable housing, and renewable energy approaches, to name a few.
If every foundation and university endowment across the nation broke with the status quo and went “All-In,” the value of such capital across our nation would be more than $2 trillion. Collectively, these endowments would rank in the top 10 of GDP in global markets.
As our colleague at PolicyLink, Angela Glover Blackwell, has articulated, the future of our nation hinges on realizing a thriving multiracial democracy for all. “Thriving” suggests economic inclusion characterized by shared prosperity. But generations of underinvesting in and underfunding communities of color and rural places have deepened wealth inequality and threatened our democracy.
Those of us who have the privilege and responsibility of leading large endowments — such as foundations, universities, and public pensions — could use our financial power to help tilt market dynamics more equitably and include those historically marginalized and disenfranchised from it. California is home to several foundations that share a deep commitment to using all we’ve got to put all our assets to work on behalf of the communities we serve.
Unlike universities and pensions, foundations are mandated by the Internal Revenue Service to give at least five percent of their total assets annually to nonprofits as grants—yet many of them set that five percent as their cap to spend on mission. Our three foundations — The California Endowment, California Wellness, and Weingart Foundation — together have about six billion dollars in assets. Five percent amounts to $300 million earmarked as grants to nonprofits. We pledge to direct our remaining $5.6 billion toward the mission.
Imagine what that would mean for real people. That capital would appear in communities laboring at the point of economic injustice. Many more families would have access to what they need and deserve to raise their children in a safe and healthy home, to visit a doctor just down the street, and to thrive. What’s more, the basic tools to support them already exist: loans, venture capital, private equity, and more. Investors can use them to support the economic inclusion and prosperity of all our communities in this country.
Institutional investors and foundations can use their unique positions to contribute to building an inclusive system of capitalism. Institutional investors are uniquely positioned to change the profit-at-any-cost calculus that drives many investment decisions. They can redefine risk, redefine return, and reconsider what profit is in the 21st century.
Our fund manager and investment partner, Illumen Capital, invests capital to benefit people who face barriers to accessing health, education, and financial services. One of Illumen Capital’s underlying portfolio companies delivers free, culturally competent telehealth services in public school settings, helping students access quality and affordable healthcare. Another company modernizes and humanizes interactions between governments and constituents. For example, customers who qualify for aid assistance programs, such as lower utility rates, are identified and enrolled in savings programs without needing to complete lengthy and time-consuming applications. What’s more, Illumen Capital understands the systemic barriers facing underrepresented founders and entrepreneurs and works tirelessly to build diverse representation within the capital markets.
Capital markets are full of choices for investors. Yet, pushing in more money will not result in shared prosperity. That outcome requires an intention to reach those left on the economic sidelines, strengthen their investment capacity, and realize both financial return and social impact.
There’s no better time than now to respond to the urgency that our communities are demanding by giving everything we’ve got. That’s the kind of democracy this nation was founded on.
Let’s all go “All-In” for this country, the multiracial democracy we are building, and the people we serve.
Joanna Jackson, President/CEO, The Weingart Foundation
Dr. Robert K. Ross, President/CEO, The California Endowment
Richard Tate, President/CEO, The California Wellness Foundation
