Innovating for Social Impact
OUR COLLECTIVE
CHALLENGE
Amount of U.S. public funding spent on the social sector annually…
Nearly $1.8 TRILLION
Professional grantmaking …
$60 BILLION
A drop in the bucket. The United Nations estimates it will take $7 trillion of annual investment to achieve their Sustainable Development Goals.
JOURNEY TO IMPACT
Entrepreneurial Father
Philanthropist Mother
MY BACKGROUND
• Formed in 2003 after unsuccessful attempts to penetrate the mass market for video phones
SORENSON COMMUNICATIONS
• Re-tooled to enable a Video Relay Service (VRS) solution for the deaf to communicate with the hearing in American Sign Language
FINANCIAL RETURN • Superior technical solution, exceptional growth
• Grew from $0 to over $120M revenues and $60M EBITDA…i 2 years
SOCIAL RETURN • Transformed communication capabilities for 1,000,000 deaf individuals—4-fold increase in employment • Employs nearly 10,000—many of whom are deaf
“
It's like a dream come true for us.
And the best part of it is, we get to use our own language, sign language.”
• 2nd largest employer of deaf in U.S. • Called the Alexander Graham Bell of the deaf community
– Ron Burdett, dean of deaf studies and special services at Ohlone College.
MY “A HA” MOMENT “Do well while doing good.”
IMPACT INVESTING OVERVIEW
IMPACT INVESTING
WHAT
is impact investing? Investing with the intent to generate both financial returns and purposeful, measurable, positive social or environmental impact.
Millennials + Women
WHY
Impact Investing? MEGATRENDS:
Over the coming decades, millennials will inherit an estimated $67 trillion dollars in assets from the Baby Boomer generation.* Additionally, women now control 75% of disposable income.
Invest Differently Studies show that these two demographics invest differently** • 76% of women say they want to invest in organization promoting social well-being. • 93% of Millennials believe that a company’s social and environmental impact is key to their investing decisions.
$1 Trillion and Counting JP Morgan forecasts an increase in impact investing from $60 billion in 2013 to $1 trillion by 2020* and these numbers are expected to rise further with the coming wealth transfer.
* U.S. Trust, Insights on Wealth and Worth, 2016; 2014. ** Medland, Dina. "Fact: The Younger The Investors, The More They Care About Values." Forbes. Forbes Magazine, 2015.
INVESTMENT CONTINUUM TRADITIONAL INVESTING
ESG / SRI INVESTING
IMPACT INVESTING
NEGATIVE SCREEN
POSITIVE SCREEN
VENTURE PHILANTHROPY
IMPACT FIRST
FINANCE FIRST
MARKET RETURN
TRADITIONAL PHILANTHROPY
BELOW-MARKET RETURN
LOSS OF CAPITAL
ESG RISK MANAGEMENT PROACTIVE, MEASURABLE IMPACT Source: Julia Balandina Jaquier, “Catalyzing Wealth for Change: Guide to Impact Investing.”
CORE CRITERIA OF IMPACT INVESTING
RELATE TO IMPACT OPPORTUNITIES ACROSS SECTORS
INTENTIONALITY Investments are motivated by the intention to create a social or environmental good
SOCIAL MISSION
Service providers and non-profits have a mission to achieve social good
IMPACT MEASUREMENT
TRACKING OUTCOMES
Social/environmental performance is measurable and measured
Performance is measured against outcomes and metrics
FINANCIAL RETURN
ENSURING SUSTAINABILITY
Return ranges from return of capital up to market returns
Source: Julia Balandina Jaquier, “Catalyzing Wealth for Change: Guide to Impact Investing.”
With innovative financing and funding that relies on performance measurement and reporting
SORENSON IMPACT CENTER
A.
French pensioners have directed 10 billion euros [research source] to Solidarity Investment Funds, which invests 10% of its capital to social investments and the remainder to socially responsible companies.
IMPACT MEASUREMENT
GOVERNMENT PERFORMANCE & INNOVATION ACADEMICS & RESEARCH
DATA
IMPACT INVESTING
DEVELOPMENT IMPACT BONDS
FUND MANAGEMENT
expertise
PROFESSIONAL LEARNING CONVENINGS
UTAH PRE - K PAY FOR SUCCESS
v
600 kids
2013 County Pilot
3,700 kids over 5 years
2014 SIB
$13,000,000 to support 4,000 kids per year
2016 Legislative Session
COLUMBUS PFS CASE STUDY Problem: Individuals with autism are an underutilized labor pool Solution: NextWork connects employers with skilled employees Social Impact: Improved economic and quality of life outcomes for adults
with autism, reduced entitlement
NextWork social cost-benefit analysis revealed high SROI potential.
Dec 2016
Research instruments designed, outcome selection begins.
July 2017 PFS Feasibility study for NextWork begins.
Dec 2017
Feasibility complete; move to structuring.
March 2018 Preliminary research results available.
June 2018
[SOCIAL IMPACT PARTNERSHIPS TO PAY FOR RESULTS ACT]
SIPPRA RIGOROUS EVALUATION
INCENTIVIZING SCALABLE LOCAL SOLUTIONS
BASIC SLIDES SECTION
THE IMPACT REVOLUTION
SLIDE