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Philanthropists Pledge US$4 Billion for Climate Change Battle

The Ferguson Fire burns in California's Sierra National Forest and Yosemite National Park. August 8, 2018. (Photo courtesy U.S. Forest Service Pacific Southwest Region 5) Public domain

The Ferguson Fire burns in California’s Sierra National Forest and Yosemite National Park. August 8, 2018. (Photo courtesy U.S. Forest Service Pacific Southwest Region 5) Public domain

By Sunny Lewis

SAN FRANCISCO, California, September 24, 2018 (Maximpact.com News) – Philanthropic foundations from across the United States and around the world have just pledged $4 billion over the next five years to fight climate change – the largest climate-related philanthropic commitment ever made.

In a joint statement, the 29 contributing foundations said, “As climate philanthropists, we are committed to supporting the vast array of solutions required to tackle this global problem. We know that every moment, and every dollar, counts. Which is why we are proud to announce today the joint commitment of more than $4 billion over the next five years to combat climate change.”

“We know that it is only a down payment,” the philanthropists declared. “Everyone has a role to play—and philanthropy must be prepared to invest many billions more.”

The announcement, made at the Global Climate Action Summit in San Francisco on September 14, is a broad global commitment to accelerate proven climate and clean-energy strategies, spur innovation and support organizations everywhere working to protect their communities and the air they breathe.

“Philanthropists can and must work together as catalysts to engage governments, the business community and NGOs to accelerate progress on climate change,” said Nat Simons, co-founder of the Sea Change Foundation. “The multi-billion dollar commitment announced today is only a down payment. Together we’ll need to invest billions more. And soon.”

The contributing foundations are working to form new global coalitions of philanthropic investors focused on high leverage issues like sustainable land use. The goal is to demonstrate their viability and enable investors of all sizes and capacities to participate for maximum impact.

“Now, more than ever, philanthropy has to step up and go big. The health of our children, our communities, and our economic future literally depends on it,” write MacArthur Foundation executives Debra Schwartz, managing director, impact investments, and Susan Phinney Silver, mission investing director, David and Lucile Packard Foundation, in an article on the MacArthur Foundation website.

“If we are going to keep the planet from warming more than 1.5 degrees Celsius above pre-industrial levels, we can only afford to emit about another 600 Gigatons of CO2 into the atmosphere. At current rates, that will take about 14 years (or perhaps a decade longer if we aim for 2 degrees). In either scenario, urgent action is needed,” write Schwartz and Silver.

The $4 billion worth of investments will support an array of strategies, with an emphasis on those addressing the five challenge areas addressed at the Global Climate Action Summit – healthy energy systems, inclusive economic growth, sustainable communities, land and ocean stewardship and transformative climate investments.

“The value of these investment strategies are clear in three critical areas that benefit from philanthropic capital that can be flexible and risk-tolerant: renewable energy, energy efficiency in the built environment, and sustainable forestry and land use,” write Schwartz and Silver.

Over the past 20 years, the nonprofit sector, supported by philanthropists, have broadened access to low-cost, reliable wind and solar energy; designed policies that are revolutionizing the integration of a new generation of electric vehicles; and provided critical support to countries working to meet the requirements of the historic Paris Agreement on climate.

“Tackling global climate change requires partnership and collaboration, and philanthropy has an important role to play,” said Patricia Harris, CEO of Bloomberg Philanthropies.

“We’re proud to support efforts that are making incredible local progress around the world, but there’s so much more that needs to be done,” said Harris. “This landmark pledge is a key step to making even greater impact, together.”

The philanthopists say that by working together, sharing knowledge, welcoming new partners, and harnessing the actions of governments, the private sector and everyday citizens, the philanthropic community can be a catalyst in the fight against our world’s greatest threat.

Much of their $4 billion investment will support local organizations working on the front lines of climate change who are cutting greenhouse gas emissions and protecting carbon sinks such as the Amazon rainforest. They want the funding to “propel the expansion of successful local efforts to solve the climate crisis and allow those most affected by the climate crisis to shape the solutions to it.”

“Each day brings new evidence of climate change affecting lives – from extreme weather events, to increased food insecurity, to tragic impacts on human health,” said Kate Hampton, CEO of the Children’s Investment Fund Foundation.

“We see the suffering that a steadily warming planet is causing to people around the world, but we also see hope,” Hampton said. “As philanthropists, we are committed to doing our part and to engaging on climate change like never before.”

“This initiative is a breakthrough, and very welcomed by civil society. Political leaders need to feel the pressure from their constituencies to prioritize action on climate change,” said Wael Hmaidan, executive director

the nonprofit Climate Action Network International. “By supporting a strong base of mobilizers, influencers and change agents in local communities around the world, this commitment can help accomplish that.”

Funders contributing to this effort include: Barr Foundation, Bloomberg Philanthropies, Bullitt Foundation, Sir Christopher Hohn and The Children’s Investment Fund Foundation, The Educational Foundation of America, Pirojsha Godrej Foundation, Grantham Foundation, Grove Foundation, Growald Family Fund, George Gund Foundation, Heising-Simons Foundation, William and Flora Hewlett Foundation, IKEA Foundation, Ivey Foundation, Joyce Foundation, JPB Foundation, KR Foundation, Kresge Foundation, Dee & Richard Lawrence and OIF, John D. and Catherine T. MacArthur Foundation, McKinney Family Foundation, McKnight Foundation, Oak Foundation, David and Lucile Packard Foundation, Pisces Foundation, Rockefeller Brothers Fund, Sea Change Foundation, Turner Foundation and Yellow Chair Foundation.

The $4 billion from philanthropic foundations can accomplish a great deal, but it is not the only investment being made by the private sector to mitigate global warming.

Investors Fight Funding Shortfall

The Investor Agenda, also launched at the Global Climate Action Summit, will support investors in accelerating and scaling-up the actions that are critical to tackling climate change and achieving the goals of the Paris Agreement across four key focus areas: investment, corporate engagement, investor disclosure, and policy advocacy.

Showcasing investor leadership on climate change will be used to inspire even more generous commitments and building on existing momentum.

Momentum is already evident, with 392 investors with US$32 trillion in assets collectively under management using The Investor Agenda to highlight climate action they are already taking and making new commitments.

To date, 120 investors are pursuing new and existing investments in low carbon and climate resilient portfolios, funds, strategies or assets such as renewable energy and energy efficiency projects; phasing out investments in coal; and integrating climate change into portfolio analysis and decision-making.

“The emergence of The Investor Agenda reflects the mounting urgency among the global investor community to address the greatest challenge of our time through measurable and transparent actions,” said Peter Damgaard Jensen, CEO of Danish pension fund PKA with over $42 billion in assets under management, and chair of the Institutional Investors Group on Climate Change.

At least 345 institutional investors with US$30 trillion in assets are urging governments to implement the Paris Agreement and enhance their climate policy ambitions by 2020. They are calling for: phase out of thermal coal power worldwide, greater investment in the low-carbon transition and improving climate-related financial disclosures.

Investor disclosure highlights the more than 60 investors committed to reporting in line with the Task Force on Climate-related Financial Disclosure recommendations.

Corporate engagement highlights 650 investors with US$87 trillion in assets backing the Carbon Disclosure Project’s environmental disclosure request; and 296 investors from 29 countries with US$31 trillion in assets that are signatories to Climate Action 100+. This investor-led initiative engages the world’s largest corporate greenhouse gas emitters and asks them to limit emissions to achieve the goals of the Paris Agreement.

Patricia Espinosa, executive secretary of the United Nations Framework Convention on Climate Change (UNFCCC), supports these investor actions.

“Investors are showing great leadership to promote climate action in multiple fronts. Their efforts to meet the shortfall in the financial resources required to deliver the Paris Agreement goals, and further building on engagement with high-emitting sectors are a valuable contribution,” said Espinosa. “Yet we believe many more opportunities exist.”


Featured Image:  Human encroachment of Kenya’s Mau Forest by local communities has degraded the forest. Members of the Peace Ambassadors Kenya pambio.org/green-print-project are planting trees to restore the Mau Forest, Kenya’s largest water tower and the region’s rainfall catchment area. September 20, 2018 (Photo by Antony Odhiambo / Global Landscapes Forum) Creative Commons license via Flickr

Maxim

Jordan Cycles Into Business Adventures

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Used bikes arrive in Jordan, shipped from the United States. (Photo courtesy Wheels of Change) Posted for media use

By Sunny Lewis

AMMAN, Jordan, June 1, 2017 (Maximpact.com News) – Malia Asfour, Jordan Tourism Board director for North America, has inspired travel professionals from across the United States to help rural communities in Jordan by donating used bicycles, building bike shops and supporting tour guide training.

The plan was conceived around a dinner table about as far away from the sunny Middle Eastern country of Jordan as anyone could get – chilly Anchorage, Alaska.

In September 2016, a small group of travel professionals, in Anchorage for the annual Adventure Travel World Summit, gathered for dinner.

At the table that night was Keith Sproule, executive director of A&K Philanthropy, associated with the American luxury travel agency Abercrombie & Kent with its global network of 52 offices.

Also at the table was Dan Austin, founder of Austin Adventures and the nonprofit Wheels of Change that began donating bikes and operational skills to remote communities in Africa in 2010.

Muna Haddad was there. She serves as director of the Jordan-based social enterprise Baraka, whose mission is to support sustainable tourism while conserving and protecting cultural heritage and natural resources.

They listened intently as Asfour told how Jordan is seeing an increasing interest in cycling, but currently only the affluent can afford to own a bike. In rural areas bikes are very scarce.

JordanTrailUmQais

Starting at the basalt ruins of the Decapolis of Um Qais overlooking the Sea of Galilee, the Jordan Trail heads down towards the Arab Dam. (Photo courtesy Jordan Trail) Posted for media use

Asfour explained that Jordan is actively building partnerships with adventure travel companies, introducing new cycling itineraries and mapping out adventurous bike trails nationwide, including the newly completed Jordan Trail, which runs the entire length of the country, 650 kilometers, from Um Qais in the north to Aqaba in the south.

Once the idea of bikes for Jordan took hold of their imaginations, the people in this core group around the Anchorage dinner table began to reach out to other tourism professionals for support.

They received commitments from the travel insurance company World Nomads through its online philanthropy project Footprint Network, which agreed to help provide funding.

Tourism Cares, the nonprofit, philanthropic arm of the travel and tourism industry, also committed funds to help establish community bicycle enterprises in Jordan.

Jordan suffers from a high unemployment rate, officially at 15 percent. Residents of remote villages often do not have the transportation they need to reach employment and educational opportunities.

To overcome these problems, the tourism professionals plan to establish two bike shops in Um Qais Village at one end of the Jordan Trail and in Feynan.

Used bikes are being shipped to Jordan from the United States. The shipping containers will be repurposed as bike rental, sales and repair shops.

Each shop will include a bike tour component, serving as a starting point for local bike tours. Four people from Um Qais are now being trained as tour guides.

The new bike shops can provide steady employment for up to eight people, and will give others the means to travel farther for jobs or school, to reach their livestock, or have better access to health care.

This project will tie into the Jordan Trail initiative, enabling locals and visitors to bike between villages along the trail.

In December 2016, four months after the plan was conceived in Alaska, the first container of 260 mountain bikes, spare parts and tools organized by Wheels of Change departed Billings, Montana. It was bound for Feynan, Jordan in the Dana Biosphere Reserve with its historic ruins and ecolodge on the Jordan Trail.

The Jordan Tourism Board has committed to securing duty import exemptions for the shipping containers full of bikes

On April 26, 2017, the first container was officially opened. Present for the festivities were Andy Austin and Corey Meyer, two Austin Adventures guides assigned to do much of the mechanical training, along with Muna Haddad of Baraka, who will be the on-ground project manager.

Haddad and her staff will work with the beneficiary communities, investing in setting up the shops, conducting training, overseeing facilities and handling the logistics of ground transport into and around Jordan.

A second container of 412 mountain bikes, spare parts and wheels sent by A&K Philanthropy in partnership with Working Bikes in Chicago was shipped on March 13. It is scheduled to arrive on or about May 28th in Madaba, central Jordan.

Baraka will help set up another bike shop in Madaba as well as a bike share program at Petra University, making it the first bicycle-friendly campus in Jordan.

There is a recycle and reuse component to the venture built in from the start to keep donated bikes from ending up in a landfill.

Once all of the elements are in place, the shops are designed to be sustainable, paying for the costs of resupplying their stock of bikes with money earned through the sales and repair of bikes and the rental of bikes for tours.

Another positive element to the bike shop operation is its mission to give back to the community. After all wages and business expenses are paid, the remaining funds are set aside to fund local charitable projects.

“It’s beautiful to see an idea come to life,” posted Haddad on Facebook. “This is how we change the world, one idea at a time and a lot of hard work in between.”

This project was showcased at the Adventure Travel Trade Association’s AdventureNEXT Near East, held from May 15 to 17 on the shore of the Dead Sea in Jordan, the first event of its kind to highlight adventure travel in the Near East.

Sproule presented the bike donation initiative at the conference to demonstrate how such strategic partnerships can successfully benefit grassroots development and tourism, helping to create new skills and business opportunities.


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Top Trends for Grantmakers for 2016

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by Kerrin Mitchell, Co-founder and COO of Fluxx

Now that we’ve had a few weeks to settle into 2016, it’s time to look ahead ­– to the big ideas and trends that are likely to dominate the conversation in the philanthropic sector for the next 12 months and beyond. From billionaire tech tycoon philanthropy to the smallest crowdfunded community initiative, the year in philanthropy promises to test big ideas and, as always, refine the everyday hard work of grantmaking. Here is our, by no means exhaustive, list. Enjoy.

Tech Titan Philanthropy

Bill Gates along with British Chancellor George Osborne have pledged $4.3 billion to eradicate malaria, one of the world’s most deadly diseases. The effort re-enforces Gates’ status as the grandfather of tech philanthropy who has opened the door for others in Silicon Valley, like Elon Musk of Tesla Motors and Reid Hoffman of LinkedIn, who have formed a $1 billion nonprofit, OpenAI, which aims to research and develop “digital intelligence” projects. The alliance between the tech and nonprofit sectors is, without question, one of the bigger trends to watch in 2016, as many major players are throwing their names into the philanthropic ring. The most notable example perhaps is Mark Zuckerberg who made waves when he and his wife announced last month that they are planning to give the majority of their fortune to nonprofit causes. Focusing primarily on promoting education and community, Zuckerberg is quickly becoming one of the biggest names in philanthropy. We’re optimistic he’s taken to heart lessons-learned from his 2010 foray into education reform in Newark.

Taking Data to Heart

It’s safe to say that big data is changing the way foundations are making decisions. Long gone are the days of paper quarterly or yearly reporting. Gathering data to understand trends and predict future behavior – often in real time – will continue to be a major focus for foundations in 2016. Understanding and analyzing data can help foundations measure impact, track donor behavior, and make hyper-accurate predictions about the impact of their grantmaking. In 2016 I expect to see many more philanthropic leaders taking actionable steps toward measuring impact. The case has been made that impact measurement is of critical importance. 2016 is the year to act. Foundations like the Children’s Investment Fund Foundation, Arcus Foundation, and others are already making great strides in this area.

Impact Investing

In 2015, there was a surge of philanthropic announcements endorsing the practice of impact investing, including Kresge’s announcement of their $350 million impact investing funding pool and Heron Foundation’s public commitment to move 100 percent of their assets to impact funding. Unlike traditional grantmaking, impact investing refers to investments in companies, organizations, and funds with the intention to generate beneficial social impact alongside a financial return. In the wake of Kresge’s and Heron’s announcements, we’ll be interested to see which foundations follow through by putting all of their investments toward their missions. While philanthropists like Pierre Omidyar have been able to step outside of the bounds of traditional philanthropy in this way, it remains to be seen if foundations will do the same.

Crowdfunding Philanthropy

2015 showed us that philanthropy is no longer just for private foundations, with the enduring popularity of crowdfunding websites, like Kiva and GoFundMe, built to aid nonprofits. Then in October, Indiegogo launched Generosity, a site which allows nonprofits to gain access to crowdfunded resources without having to to pay any membership fee. This allows 100% of the money a nonprofit collects to be used for the greater good, while simultaneously lowering the bar so that people can help support causes they care about regardless of their income. Looking at all this progress, it’s safe to say that crowdfunded philanthropy will continue to grow and expand throughout 2016.

Donor-Advised Funds

According to Inside Philanthropy donor-advised funds will be as popular in 2016 as they were last year, bringing many more newcomers to the philanthropic table. Many donors love DAF’s as a way to set aside money for charitable giving and for their immediate tax benefits. However, critics of DAF’s worry that the money set aside in these accounts will never see the light of day. For a cash-strapped nonprofit that needs operating support now, DAF’s may not sound so attractive. Is this the year the critics find traction? Not likely, according to David Callahan at Inside Philanthropy.: the convenience of DAF’s will continue to bring new and younger donors into the world of giving, making 2016 another “boom year”.

Women in Philanthropy

Women’s empowerment has been a philanthropic goal for a long time, but in the past few years foundations have been making an extra effort to support women’s equality. On top of that, as women have gained a foothold in some sectors of the economy, they have also become more prevalent in the philanthropic field, and 2015 saw more women participating in grantmaking than ever before. Just to name a few – Michele Sullivan at Caterpillar turned her focus to girl’s education with WASH, the Virginia B. Toulmin Foundation is using $15,000 of grants to support women composers, and the Adrienne Shelley Foundation is providing production grants and other resources specifically for women filmmakers. We’re hoping to see these trends continue both domestically and internationally as we move further into 2016.


kerrin1Kerrin Mitchell, COO/Co-Founder

Kerrin Mitchell is the Co-founder and COO of Fluxx, a comprehensive technology platform that aims to unite foundations and non­profits worldwide. Kerrin started her career at Cisco Systems as a Finance Business Manager. After seven years of working at Cisco, Kerrin decided to join the startup world and join Sprout as VP of Operations. In 2010 Kerrin co-founded Fluxx where, in under five years, she has bootstrapped the company to year over year triple digit growth and a client portfolio of over $150B in assets. She earned a B.S. in Economics from Duke University, a Certificate in Advanced Program Management from Stanford University and a Certificate in Accounting from University of California, Santa Cruz.

 

Donor Checklist Improves Odds of Doing Good

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By Christopher Purdy

Americans continue to be a most generous people, ranking Number 1 in the World Giving Index 2014, the only country to rank in the Top 10 for all three kinds of giving covered by the Index – helping a stranger (1st), volunteering time (5th) and donating money (9th).

In 2014, Americans’ giving to charitable organizations exceeded $350 billion, according to Charity Navigator, equivalent to 2% of Gross Domestic Product.

No doubt, that largesse does a considerable amount of good. But this generosity could have even more impact if prospective donors would consider a few issues before writing a check or punching in their credit card number. Here’s a checklist for prospective donors looking for outstanding investing opportunities in social good:

  • ___ Measurable Results and Transparency: Organizations should rigorously measure and report results that are transparently presented on a consistent basis by yardsticks such as contraceptive prevalence and maternal and child mortality. This ensures greater accountability and engenders trust by partners and donors. Look for an annual statistics recaps, like this example, on their website.
  • ___ Cost Recovery: The best programs mimic the best for-profit companies and recover a significant portion of their costs through revenues collected, and do so without sacrificing the quality of its services or the ability of poor people to use them. It’s important to ensure that programs are financially sustainable and have the financial health to endure beyond a donor’s gift. This article talks about the three steps to financial sustainability – cost recovery, cross-subsidization and profitability.
  • ___ Check Out Their Finances: Their audited financial statement and Form 990 should be easily accessible on their website. “Savvy donors ask the charity for copies of its three most recent Forms 990,” according to “Top 10 Best Practices of Savvy Donors” of Charity Navigator. “Not only can the donor examine the charity’s finances, but the charity’s willingness to send the documents is a good way to assess its commitment to transparency.”
  • ___ Entrepreneurial Spirit: Look for an entrepreneurial spirit where managers are empowered to use social marketing or others tools of the commercial marketplace to achieve a social purpose. This entrepreneurial tendency generally results in less bureaucracy and more focus on bottom-line health impact using the commercial infrastructure already in place.
  • ___ Decentralization: Look for a decentralized approach, ensuring that strategic and programmatic responsibility is delegated to field offices or employees on the ground. This allows for fast decision-making that is based on the realities of the environment. It also means fewer headquarters costs. DKT International, which I run, spends 2% of operating costs on a headquarters of less than 10 people; less than 0.2% is spent on fundraising.
  • ___ Domestic vs. International: Many people subscribe to the credo that “charity begins at home” and tend to favor domestic charities over international ones. Certainly, there are great needs in the U.S. But I believe that there are tremendous opportunities to make more impact with less money by donating to organizations working in developing countries. This article, “Your dollar goes further overseas,” explains this concept.
  • ___ Follow Up: Don’t just fork over the money and then forget about it. Check back a year later and see whether the organization has met its objectives, says GiveWell, a nonprofit dedicated to finding outstanding giving opportunities, in their “6 tips for giving like a pro.”

When giving to charity, following your heart feels good. Using your head and your heart feels even better.

Chris Purdy is CEO and president of DKT International. From 1996 to 2011, he served as DKT country director in Turkey, Ethiopia, and Indonesia, where he managed the largest private social marketing family planning program in the world.  He served as executive vice president from 2011-2013. His professional interests center on advancing the cause of social marketing for health and socially responsible capitalism.

Images: 123RF

Maximpact: Bringing the Impact Sector Together

At Maximpact,we pride ourselves on our inclusive approach to impact investing. An important part of our mission is to strengthen the sector by providing a place where a wide range of impact players can come together and make impact deals. To make this happen more effectively, we’ve adopted a very broad definition of impact investing, creating a “big tent” that invites a diverse range of players under the same roof. The chart above shows how different types of impact actors are able to come together on Maximpact.

Our strategy seems to be working. Today, Maximpact welcomes funders, intermediaries and entrepreneurs from every part of the world and every corner of the impact sector. Some are veteran funders and intermediaries who have supported the idea of impact since the beginning. Others are new to impact and just discovering its potential. The chart also shows some of the new types of players that are entering the field, notably from the corporate social responsibility (CSR), eco and green technology, and the philanthropy sectors.

For Maximpact, this is good news. We believe that a greater variety of players in the impact arena will lead to better deal flow and a faster pace of innovation. In the meantime, we do our best to maintain the “big tent”, making sure all our users are discovering a world of new impact possibilities on our ever-expanding global platform.

The Maximpact Collaborative Approach – How it works

At the time of registration, users will be asked to identify them selves with a sector group (impact, philanthropy, CSR or eco; green) then select a user group(entrepreneur, intermediary or fund). Different types of users have different rights and levels of access to the Maximpact platform.

Definitions

  • Entrepreneurs:Entrepreneurs and companies
  • Intermediaries: Angel investors, social enterprise accelerators,incubators, venture capital groups, social venture networks and others
  • Funds: Investment funds, family offices,foundations,organizations, NGOs, companies, asset managers and others

Every registrant is vetted by Maximpact and best efforts are made to certify and qualify each applicant before access is permitted.Password access enables registered users to list and search for deals and ventures according to their access rights.When a deal or venture is listed, the listing party has an opportunity to identify the kind of funders they wish to attract (impact, philanthropy, CSR and/or eco & green). This allows users to filter and find like-minded funding matches more easily. However, it does not exclude deals from being searched by other types of funders that were not selected.

The hope of Maximpact is that all users will at some point reach out beyond their group and seek collaborative opportunities with others to create the biggest impact for us all.