Summer Greetings!
Here’s my extremely short summer reading list for you:
- As we all try to get our arms around metrics and what we could/should be measuring, the SK2 Fund leads the way. Here’s their 2022 annual report. It’s an inviting look and read!
- “Inside Philanthropy” has a fascinating interview: “‘It’s a False Dichotomy’ Questioning Perpetuity and Spend Down with Clara Miller.” Clara raises issues that I suspect most of us have not considered.
- Don’t forget our new 3-minute film, “Dollars That Make Sense!”
Meanwhile, stay cool – in every way,
Elizabeth
Featured Paradigm Shifter
Jill Fink
Executive Director
The Merchants Fund
Jill and her board are jumping into the mission aligned pool head first.
At Work…
What inspired you to align your endowment with your mission? For The Merchants Fund (TMF) board, the “a-ha moment” came when working with Ty Thiele (of Andorra) on the “know what you own” part of our journey. Realizing that we had investments that actively worked against our mission was the catalyst to make a change. (For example, we prioritize funding to immigrant-owned businesses and we had investments in detention centers along the border.) Ultimately, I’d say our alignment is broader than mission-alignment and is more values-aligned. Our mission is to support small business owners in Philadelphia, which is fairly narrow in scope. Our values are much broader and we made the choice not to be invested in anything that caused harm in the communities we seek to serve. With that lens in mind, we divested from things like tobacco, guns, oil, etc.
What have been the biggest obstacles at your foundation for mission alignment? Time. I don’t know if that’s an obstacle in and of itself, but it feels as if everything just takes more time than one expects. Making the choice to divest was easy, and once we did we were able to execute on it rather quickly. The move to mission-aligned investing, and ACTIVELY investing in opportunities, has taken more time. Mostly I think this has to do with determining the right level of — and mechanisms for — conducting due diligence. How do we do it in ways that are responsible and that also aren’t cost prohibitive? We don’t have a huge endowment and we’re mindful that whatever we’re paying to consultants, lawyers, fees, etc. ultimately impacts how much we could be making in direct grants to businesses in need. We’ve had conversations with our peer organizations about ways to share due diligence and reduce costs, which we’re excited to pursue.
How far along is your foundation in this journey? I’m not sure what the metric is for measuring this and if there’s ever an “end” to the journey, so it’s hard to say. We definitely still have work to do.
What’s next in your mission alignment? TMF has been managing our own endowment for the last three years. Our next step is to hire an investment manager that is aligned with our values who can further assist us on – and move us along – our journey.
What about perpetuity or spending down? The Merchants Fund was established in 1854 to support merchants during times of financial hardship. Nearly 170 years later, we remain the only charitable organization solely dedicated to providing financial assistance to for-profit small businesses. In informally talking with our grantees about the possibility of spending down, they expressed opposition to the idea, essentially saying some version of “If The Merchants Fund no longer exists, where would we go when we need help?” While we’re still having the perpetuity/spend down conversation at the board level, there’s a strong sense that merchants will always have emergencies or challenges that require support and that we should be around to fill that need.
What’s a favorite mission aligned investment of yours? In collaboration with a number of other local foundations, TMF made its first PRI two years ago to a local developer, Dr. Leon Caldwell/Ujima Developers for the Thrive Development on West Girard Avenue in East Parkside. It’s not my favorite because it’s the only one, but because I believe so deeply in Dr. Caldwell’s vision for the community.
Have you ventured into shareholder advocacy? How so?! Not yet. Maybe this is the next step in the journey.
What’s the most convincing thing to get others on board? Know what you own! If you’re making money off things that are at cross-purposes with your mission or values, you need to make a change.
After Work…
Guilty pleasure: binge-watching anything
Kickback film: probably anything by Hayao Miyazaki
Last series you binge-watched: Yellowjackets (on Showtime)
Favorite caffeine source: oatmilk latte sweetened with maple syrup
Sweet or salty: Salty. All. Day. Long.
Happy place: Maine
A favorite novel: Cannery Row by John Steinbeck
Animal friends: Hazel (18 mos old pup) and Cathy (7 year old cross-eyed cat)
Childhood ambition: teacher
Adult ambition: to make a difference…
Embarrassing moment: for better or worse, I don’t embarrass easily; perhaps a benefit of being able to laugh at one’s self
Nickname: never had one, taking suggestions
Biggest challenge: boundaries
Soundtrack of your life: almost anything from the mid-80s to early 90s, but most especially The Cure, Depeche Mode, Yaz, anything in that vein
Music that lifts your spirits: 70s R&B/soul
Pet peeve: The misuse, overuse, or underuse of punctuation.
Most unusual gift given: a vintage Dutch bike race medal found in an antique shop in Amsterdam
Most unusual gift received: a housewarming gift from a neighbor: a giant blue IKEA bag filled with firewood, a dozen eggs (from his hens), and a mason jar filled with homegrown weed
Last splurge: a portable a/c unit
New Arrival at Our Foundation
And we sign off with a photo of Jonathan (Co-CEO of our foundation) and his wife Kate with the most recent addition to our team: Adeline!
