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Grand Valley State University

2022

Guarantees

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Full-Text Articles in Business

Using Foundation Capital For Good: Opportunities In The Balance Sheet, John Sherman, Veronica Olazabal Dec 2022

Using Foundation Capital For Good: Opportunities In The Balance Sheet, John Sherman, Veronica Olazabal

The Foundation Review

Foundations increasingly use their full balance sheets to unlock more of their capital for good. They look beyond conventional grantmaking to pursue their charitable purposes in many ways that exemplify innovative, full-balance sheet approaches: investing in nonprofit and for-profit companies that offer clear social and financial returns; investing their corpus in companies whose products and services align with their missions; using social bonds to inject new resources into their programs; offering guarantees to help grantees manage risk; and avoiding companies whose practices run counter to their grantees’ efforts.

This article looks at the structures, pathways, and tools for foundations wanting …


Leveraging Foundation Balance Sheets For Greater Impact: Piloting A Pooled Guarantee Program, Jane Reisman, Jim Baek, David Newsome, Christine Ryan Dec 2022

Leveraging Foundation Balance Sheets For Greater Impact: Piloting A Pooled Guarantee Program, Jane Reisman, Jim Baek, David Newsome, Christine Ryan

The Foundation Review

A guarantee instrument is a credit enhancement tool that can enable philanthropies to unlock millions or billions of dollars for societal impact. The Community Investment Guarantee Pool, created in 2019 by a collaboration of philanthropies and allied impact investors, or guarantors, is a novel initiative that uses guarantees to leverage the balance sheets of foundations and other institutional investors for enhancing the credit of intermediaries in the affordable housing, small-business, and climate markets. As the guarantees are unfunded, foundations continue to keep their endowment invested in the conventional market.

This article describes the Community Investment Guarantee Pool, details its theory …