Financial endowment

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A financial endowment is a legal structure for managing, and in many cases indefinitely perpetuating, a pool of financial, real estate, or other investments for a specific purpose according to the will of its founders and donors. [1] Endowments are often structured so that the principal value is kept intact, while the investment income or a small part of the principal is available for use each year.

Financial instrument monetary contract between parties

Financial instruments are monetary contracts between parties. They can be created, traded, modified and settled. They can be cash (currency), evidence of an ownership interest in an entity (share), or a contractual right to receive or deliver cash (bond).

Real estate is "property consisting of land and the buildings on it, along with its natural resources such as crops, minerals or water; immovable property of this nature; an interest vested in this (also) an item of real property, buildings or housing in general. Also: the business of real estate; the profession of buying, selling, or renting land, buildings, or housing." It is a legal term used in jurisdictions whose legal system is derived from English common law, such as India, England, Wales, Northern Ireland, United States, Canada, Pakistan, Australia, and New Zealand.

In philanthropy, donor intent is the purpose, sometimes publicly expressed, for which a philanthropist intends a charitable gift or bequest. Donor intent is most often expressed in gift restrictions, terms, or agreements between a donor and donee, but it may also be expressed separately in the words, actions, beliefs, and giving practices of a philanthropist. Donor intent is protected in American law regarding charitable trusts, and trustees' primary fiduciary obligation is to carry out a donor's wishes.

Contents

Engraving of Harvard College by Paul Revere, 1767. Harvard University's endowment was valued at $37.1 billion as of 2017 A Westerly View of the Colledges in Cambridge New England by Paul Revere.jpeg
Engraving of Harvard College by Paul Revere, 1767. Harvard University's endowment was valued at $37.1 billion as of 2017
The Bill and Melinda Gates Foundation headquarters complex in Seattle as seen from the Space Needle B&M Gates Complex.jpg
The Bill and Melinda Gates Foundation headquarters complex in Seattle as seen from the Space Needle

Endowments are often governed and managed either as a nonprofit corporation; a charitable foundation; or a private foundation that, while serving a good cause, might not qualify as a public charity. In some jurisdictions it is common for endowed funds to be established as a trust independent of the organizations or causes the endowment is meant to serve. Institutions that commonly manage endowments include academic institutions (e.g., colleges, universities, and private schools); cultural institutions (e.g., museums, libraries, and theaters); service organizations (e.g., hospitals, retirement homes; the Red Cross, the SPCA); and religious organizations (e.g., churches, synagogues, mosques).

A nonprofit organization (NPO), also known as a non-business entity, not-for-profit organization, or nonprofit institution, is dedicated to furthering a particular social cause or advocating for a shared point of view. In economic terms, it is an organization that uses its surplus of the revenues to further achieve its ultimate objective, rather than distributing its income to the organization's shareholders, leaders, or members. Nonprofits are tax exempt or charitable, meaning they do not pay income tax on the money that they receive for their organization. They can operate in religious, scientific, research, or educational settings.

A foundation is a category of nonprofit organization or charitable trust that will typically provide funding and support for other charitable organizations through grants, but may engage directly in charitable activities. Foundations include public charitable foundations, such as community foundations, and private foundations which are typically endowed by an individual or family. The term "foundation" though may be used by organizations not involved in public grant making.

Private foundation legal entity set up for a purpose such as philanthropy or an object legal in the economic operation

A private foundation is a charitable organization that, while serving a good cause, might not qualify as a public charity by government standards. The Bill & Melinda Gates Foundation is the largest private foundation in the U.S. with over $38 billion in assets. Most private foundations are much smaller. Approximately two-thirds of the more than 84,000 foundations which file with the IRS, in 2008, have less than $1 million in assets, and 93% have less than $10 million in assets. In aggregate, private foundations in the U.S. control over $628 billion in assets and made more than $44 billion in charitable contributions in 2007.

Private endowments are some of the wealthiest entities in the world, notably private higher education endowments. Harvard University's endowment (valued at $37.1 billion as of 2017) [2] is the largest academic endowment in the world. [3] The Bill and Melinda Gates Foundation was the wealthiest private foundation as of 2017 with endowment of $50.7 billion as of December 31,2017. [4]

The following are lists of institutions of higher education by endowment size.

Harvard University endowment American investment management company

Harvard University's endowment is the largest academic endowment in the world. Along with Harvard's pension assets, working capital, and non-cash gifts, it is managed by Harvard Management Company, Inc. (HMC), a Harvard-owned investment management company.

Types

Most private endowments in the United States are governed by the Uniform Prudent Management of Institutional Funds Act which is based in part on the concept of donor intent that helps define what restrictions are imposed on the principal and earnings of the fund. Endowments in the United States are commonly categorized in one of four ways: [5]

The Uniform Prudent Management of Institutional Funds Act is a uniform act that provides guidance on investment decisions and endowment expenditures for nonprofit and charitable organizations. As of 2012 UPMIFA is the law in 49 states, the District of Columbia and the U.S. Virgin Islands. Neither Pennsylvania nor Puerto Rico has adopted UPMIFA.

Restrictions and donor intent

Endowment revenue can be restricted by donors to serve many purposes. Endowed professorships or scholarships restricted to a particular subject are common; in some places a donor could fund a trust exclusively for the support of a pet. [7] [8] Ignoring the restriction is called "invading" the endowment. [9] But change of circumstance or financial duress like bankruptcy can preclude carrying out the donor's intent. A court can alter the use of restricted endowment under a doctrine called cy-près meaning to find an alternative "as near as possible" to the donor's intent. [9]

Endowment invasion is when an institution draws on its financial endowment to pay off debts and cover the yearly operating expenses. In New York the practice requires approval from the state attorney general’s office and the New York State Supreme Court. By 2009 most states had adopted Uniform Prudent Management of Institutional Funds Act, a law which allows "invading principal". It is considered a last resort for any institution to stave off closure.

Cy-près doctrine

The cy-près doctrine is a legal doctrine that first arose in courts of equity. The legal French term literally means "so near/close" and can be translated as "as near as possible" or "as near as may be". The doctrine originated in the law of charitable trusts, but has been applied in the context of class action settlements in the United States.

History

Marcus Aurelius, the Stoic Roman emperor who created the first endowed chair professorships L'Image et le Pouvoir - Buste cuirasse de Marc Aurele age - 3.jpg
Marcus Aurelius, the Stoic Roman emperor who created the first endowed chair professorships

The earliest endowed chairs were established by the Roman emperor and Stoic philosopher Marcus Aurelius in Athens in AD 176. Aurelius created one endowed chair for each of the major schools of philosophy: Platonism, Aristotelianism, Stoicism, and Epicureanism. Later, similar endowments were set up in some other major cities of the Empire. [10] [11]

The earliest universities were founded in Asia and Africa. [12] [13] [14] Their endowment by a prince or monarch and their role in training government officials made early Mediterranean universities similar to Islamic madrasas, although madrasas were generally smaller, and individual teachers, rather than the madrasa itself, granted the license or degree. [15]

Waqf (Arabic : وَقْف; [ˈwɑqf] ), also known as 'hubous' (حُبوس) [16] or mortmain property, is a similar concept from Islamic law, which typically involves donating a building, plot of land or other assets for Muslim religious or charitable purposes with no intention of reclaiming the assets. [17] The donated assets may be held by a charitable trust.

Ibn Umar reported, Umar Ibn Al-Khattab got land in Khaybar, so he came to the prophet Muhammad and asked him to advise him about it. The Prophet said, 'If you like, make the property inalienable and give the profit from it to charity.'" It goes on to say that Umar gave it away as alms, that the land itself would not be sold, inherited or donated. He gave it away for the poor, the relatives, the slaves, the jihad, the travelers and the guests. And it will not be held against him who administers it if he consumes some of its yield in an appropriate manner or feeds a friend who does not enrich himself by means of it. [18]

Ibn Ḥad̲j̲ar al-ʿAsḳalānī , Bulūg̲h̲ al-marām, Cairo n.d., no. 784

When a man dies, only three deeds will survive him: continuing alms, profitable knowledge and a child praying for him. [19]

Ibn Ḥad̲j̲ar al-ʿAsḳalānī , Bulūg̲h̲ al-marām, Cairo n.d., no. 78

The two oldest known waqfiya (deed) documents are from the 9th century, while a third one dates from the early 10th century, all three within the Abbasid Period. The oldest dated waqfiya goes back to 876 CE, concerns a multi-volume Qur'an edition and is held by the Turkish and Islamic Arts Museum in Istanbul. A possibly older waqfiya is a papyrus held by the Louvre Museum in Paris, with no written date but considered to be from the mid-9th century.

The earliest known waqf in Egypt, founded by financial official Abū Bakr Muḥammad bin Ali al-Madhara'i in 919 (during the Abbasid period), is a pond called Birkat Ḥabash together with its surrounding orchards, whose revenue was to be used to operate a hydraulic complex and feed the poor. In India, wakfs are relatively common among Muslim communities and are regulated by the Central Wakf Council and governed by Wakf Act 1995 (which superseded Wakf Act 1954).

Modern college and university endowments

Academic institutions, such as colleges and universities, will frequently control an endowment fund that finances a portion of the operating or capital requirements of the institution. In addition to a general endowment fund, each university may also control a number of restricted endowments that are intended to fund specific areas within the institution. The most common examples are endowed professorships (also known as named chairs), and endowed scholarships or fellowships.

The practice of endowing professorships began in the modern European university system in England in 1502, when Lady Margaret Beaufort, Countess of Richmond and grandmother to the future king Henry VIII, created the first endowed chairs in divinity at the universities of Oxford (Lady Margaret Professor of Divinity) and Cambridge (Lady Margaret's Professor of Divinity). [20] Nearly 50 years later, Henry VIII established the Regius Professorships at both universities, this time in five subjects: divinity, civil law, Hebrew, Greek, and physic—the last of those corresponding to what are now known as medicine and basic sciences. Today, the University of Glasgow has fifteen Regius Professorships.

Private individuals also adopted the practice of endowing professorships. Isaac Newton held the Lucasian Chair of Mathematics at Cambridge beginning in 1669, more recently held by the celebrated physicist Stephen Hawking. [21]

In the United States, the endowment is often integral to the financial health of educational institutions. Alumni or friends of institutions sometimes contribute capital to the endowment. The use of endowment funding is strong in the United States and Canada but less commonly found outside of North America, with the exceptions of Cambridge and Oxford universities. Endowment funds have also been created to support secondary and elementary school districts in several states in the United States. [22]

Endowed professorships

An endowed professorship (or endowed chair) is a position permanently paid for with the revenue from an endowment fund specifically set up for that purpose. Typically, the position is designated to be in a certain department. The donor might be allowed to name the position. Endowed professorships aid the university by providing a faculty member who does not have to be paid entirely out of the operating budget, allowing the university to either reduce its student-to-faculty ratio, a statistic used for college rankings and other institutional evaluations, and/or direct money that would otherwise have been spent on salaries toward other university needs. In addition, holding such a professorship is considered to be an honour in the academic world, and the university can use them to reward its best faculty or to recruit top professors from other institutions. [23]

Endowed scholarships and fellowships

An endowed scholarship is tuition (and possibly other cost) assistance that is permanently paid for with the revenue of an endowment fund specifically set up for that purpose. It can be either merit-based or need-based (the latter is only awarded to those students for whom the college expense would cause their family financial hardship) depending on university policy or donor preferences. Some universities will facilitate donors' meeting the students they are helping. The amount that must be donated to start an endowed scholarship can vary greatly.

Fellowships are similar, although they are most commonly associated with graduate students. In addition to helping with tuition, they may also include a stipend. Fellowships with a stipend may encourage students to work on a doctorate. Frequently, teaching or working on research is a mandatory part of a fellowship.

Charitable foundations

Ford Foundation Building in New York. In 2014, The Ford Foundation reported assets of US$12.4 billion and approved US$507.9 million in grants. Ford Foundation HQ jeh.JPG
Ford Foundation Building in New York. In 2014, The Ford Foundation reported assets of US$12.4 billion and approved US$507.9 million in grants.

A foundation (also a charitable foundation) is a category of nonprofit organization or charitable trust that will typically provide funding and support for other charitable organizations through grants, but may engage directly in charitable activities. [25] Foundations include public charitable foundations, such as community foundation s, and private foundations which are typically endowed by an individual or family. The term foundation though may also be used by organizations not involved in public grant making. [26]

Fiduciary management

A financial endowment is typically overseen by a board of trustees and managed by a trustee or team of professional managers. Typically, the financial operation of the endowment is designed to achieve the stated objectives of the endowment.

In the United States, typically 4–6% of the endowment's assets are spent every year to fund operations or capital spending. Any excess earnings are typically reinvested to augment the endowment and to compensate for inflation and recessions in future years. [27] This spending figure represents the proportion that historically could be spent without diminishing the principal amount of the endowment fund.

Criticism and reforms


Students at Tufts University "marched forth on 4 March" coinciding with dozens of student-led rallies around the United States. The marches had the objective of pressuring universities to eliminate investments in fossil-fuel related ventures. Fossil Fuel Divestment Student Protest at Tufts University.jpg
Students at Tufts University "marched forth on 4 March" coinciding with dozens of student-led rallies around the United States. The marches had the objective of pressuring universities to eliminate investments in fossil-fuel related ventures.

As expressed by Rodney Foxworth in Nonprofit Quarterly, there is an inherent structural tension for many endowments between the stated mission of the fund, the history and sources of the endowed capital, and the governance of the endowment. In Foxworth's words, "philanthropy is used to address problems created by an economic system that engenders radical wealth inequality, thus making philanthropy necessary in the first place." [28] In other words, endowments are using the same economic tools and power structures that cause social problems in an attempt to solve those very problems.

Ethics and endowment repatriation

Critics like Justice Funders’ Dana Kawaoka-Chen call for "redistributing all aspects of well-being, democratizing power, and shifting economic control to communities." [29] . Endowment repatriation refers to campaigns that acknowledge the history of human and natural resource exploitation that is inherent to many large private funds. Repatriation campaigns ask for private endowments to be returned to the control of the people and communities that have been most affected by labor and environmental exploitation and often offer ethical frameworks for discussing endowment governance and repatriation. [30] [31]

Many might say that, by definition, philanthropy is about redistributing resources. Yet to truly embody this principle, philanthropy must move far beyond the 5% payout requirements for grants and distribute ALL of its power and resources. This includes spending down one’s endowment, investing in local and regional economic initiatives that build community wealth rather than investing in Wall Street, giving up decision-making power for grants, and, ultimately, turning over assets to community control. [32]

Justice Funders

After the Heron Foundation's internal audit of its investments in 2011 uncovered an investment in a private prison that was directly contrary to the foundation's mission, they developed and then began to advocate for a four-part ethical framework to endowment investments conceptualized as Human Capital, Natural Capital, Civic Capital, and Financial Capital. [33]

Another example is the Ford Foundation's co-founding of the independent Native Arts and Culture Foundation in 2007. The Ford Foundation provided a portion of the initial endowment after self-initiated research into the foundation's financial support of Native and Indigenous artists and communities. This results of this research indicated "the inadequacy of philanthropic support for Native arts and artists", related feedback from an unnamed Native leader that "[o]nce [big foundations] put the stuff in place for an Indian program, then it is not usually funded very well. It lasts as long as the program officer who had an interest and then goes away" and recommended that an independent endowment be established and that "[n]ative leadership is crucial". [34]

Divestment campaigns and impact investing

Another approach to reforming endowments is the use of divestment campaigns to encourage endowments to not hold unethical investments. One of the earliest modern divestment campaigns was Disinvestment from South Africa which was used to protest apartheid policies. By the end of apartheid, more than 150 universities divested of South African investments, although it is not clear to what extent this campaign was responsible for ending the policy. [35]

A proactive version of divestment campaigns is impact investing, or mission investing which refers to investments "made into companies, organizations, and funds with the intention to generate a measurable, beneficial social or environmental impact alongside a financial return." [36] Impact investments provide capital to address social and/or environmental issues.

Donor intent

The case of Leona Helmsley is often used to illustrate the downsides of the legal concept of donor intent as applied to endowments. In the 2000s, Helmsley bequested a multi-billion dollar trust to "the care and welfare of dogs", [37] . This trust was estimated at the time to total 10 times more than the combined 2005 assets of all registered animal-related charities in the United States.

In 1914, Frederick Goff sought to eliminate the "dead hand" of organized philanthropy and so created the Cleveland Foundation: the first community foundation. He created a corporately structured foundation that could utilize community gifts in a responsive and need-appropriate manner. Scrutiny and control resided in the "live hand" of the public as opposed to the "dead hand" of the founders of private foundations. [38]

Higher education

Research published in the American Economic Review indicates that major academic endowments often act in times of economic downturn in a way opposite of the intention of the endowment. This behavior is referred to as endowment hoarding, reflecting the way that economic downturns often lead to endowments decreasing their payouts rather than increasing them to compensate for the downturn. [39]

Large U.S.-based college and university endowments, which had posted large, highly publicized gains in the 1990s and 2000s, faced significant losses of principal in the 2008 economic downturn. The Harvard University endowment, which held $37 billion in June 2008, was reduced to $26 billion by mid-2009. [40] Yale University, the pioneer of an approach that involved investing heavily in alternative investments such as real estate and private equity, reported an endowment of $16 billion as of September 2009, a 30% annualized loss that was more than predicted in December 2008. [41] At Stanford University, the endowment was reduced from $17 billion to $12 billion as of September 2009. [42] Brown University's endowment fell 27 percent to $2.04 billion in the fiscal year that ended June 30, 2009. [43] George Washington University lost 18% in that same fiscal year, down to $1.08 billion. [44]

In Canada, after the financial crisis in 2008, University of Toronto reported a loss of 31% ($545 million) of its previous year-end value in 2009. The loss is attributed to over-investment in hedge funds. [45]

Endowment taxes

Generally, endowment taxes are the taxation of financial endowments that otherwise not taxed due to their charitable, educational, or religious mission. Endowment taxes are typically enacted in response to criticisms that endowments are not operating as nonprofit organizations or that they have served as tax shelters, or that they are depriving local governments of essential property and other taxes. [46] [47]

See also

Related Research Articles

A waqf, also known as hubous (حُبوس) or mortmain property, is an inalienable charitable endowment under Islamic law, which typically involves donating a building, plot of land or other assets for Muslim religious or charitable purposes with no intention of reclaiming the assets. The donated assets may be held by a charitable trust. The person making such dedication is known as waqif, a donor. In Ottoman Turkish law, and later under the British Mandate of Palestine, the waqf was defined as usufruct State land of which the State revenues are assured to pious foundations. Although based on several hadiths and presenting elements similar to practices from pre-Islamic cultures, it seems that the specific full-fledged Islamic legal form of endowment called waqf dates from the 9th century AD.

Charitable trust irrevocable trust established for charitable purposes

A charitable trust is an irrevocable trust established for charitable purposes and, in some jurisdictions, a more specific term than "charitable organization". A charitable trust enjoys a varying degree of tax benefits in most countries. It also generates good will. Some important terminology in charitable trusts is the term ‘corpus’ which refers to the assets with which the trust is funded and the term ‘donor’ which is the person donating assets to a charity.

Tides (organization) public charity and fiscal sponsor working to advance progressive policy

Tides is an American public charity and fiscal sponsor working to advance progressive policy in areas such as the environment, health care, labor issues, immigrant rights, gay rights, women's rights and human rights. It was founded in San Francisco in 1976. Through donor advised funds, Tides distributes money from donors to other organizations, which are often politically liberal. It manages two centers in San Francisco and New York that offer collaborative spaces for social ventures and other nonprofits.

Fundraising process of gathering voluntary contributions of money or other resources

Fundraising or fund-raising is the process of seeking and gathering voluntary financial contributions by engaging individuals, businesses, charitable foundations, or governmental agencies. Although fundraising typically refers to efforts to gather money for non-profit organizations, it is sometimes used to refer to the identification and solicitation of investors or other sources of capital for for-profit enterprises.

Charitable organization non-profit organization with a charitable purpose

A charitable organization or charity is a non-profit organization whose primary objectives are philanthropy and social well-being.

Grants are non-repayable funds or products disbursed or given by one party, often a government department, corporation, foundation or trust, to a recipient, often a nonprofit entity, educational institution, business or an individual. In order to receive a grant, some form of "Grant Writing" often referred to as either a proposal or an application is required.

Lilly Endowment Inc., headquartered in Indianapolis, Indiana, is one of the world's largest private philanthropic foundations and among the largest endowments in the United States. It was founded in 1937 by Josiah K. Lilly Sr. and his sons, Eli Jr. and Josiah Jr. (Joe), with an initial gift of Eli Lilly and Company stock valued at $280,000 USD. As of 2014 its total assets are worth $9.96 billion.

In the United States, a donor-advised fund is a charitable giving vehicle administered by a public charity created to manage charitable donations on behalf of organizations, families, or individuals. To participate in a donor-advised fund, a donating individual or organization opens an account in the fund and deposits cash, securities, or other financial instruments. They surrender ownership of anything they put in the fund, but retain advisory privileges over how their account is invested, and how it distributes money to charities.

Community foundations (CFs) are instruments of civil society designed to pool donations into a coordinated investment and grant making facility dedicated primarily to the social improvement of a given place. Community foundations are a global phenomenon with 1700 existing around the world of which over 700 are in the United States. Private foundations are typically endowed by an individual or a single family.

New York Community Trust non-profit organisation in the USA

The New York Community Trust is the community foundation for New York City, with divisions in Westchester and Long Island. The New York Community Trust connects past, present, and future generous New Yorkers with vital nonprofits working to make a healthy, equitable, and thriving community for all. It is one of the oldest and largest community foundations in the United States and one of the largest funders of New York City’s nonprofits.

Endowment tax is the taxation of financial endowments that otherwise not taxed due to their charitable, educational, or religious mission. Endowments can be up to several billion dollars at the wealthiest universities, the wealthiest charitable foundations, and wealthiest medical foundations. Endowment taxes are typically enacted in response to criticisms that endowments are not operating as nonprofit organizations or that they have served as tax shelters, or that they are depriving local governments of essential property and other taxes.

Richard W. "Ric" Weiland was a computer software pioneer, programmer and philanthropist. He was the second employee at Microsoft Corporation, joining the company during his final year at Stanford University. At 35, he left Microsoft to focus his time on investment management and philanthropy, becoming a quiet but well-respected donor to the LGBTQ social justice movement, the environment, health and human services, and education. After his death, the Chronicle of Philanthropy called Ric's bequest the 11th largest charitable gift in the nation with more than $165 million distributed between 20 nonprofit beneficiaries.

A foundation in the United States is a type of charitable organization. However, the Internal Revenue Code distinguishes between private foundations and public charities. Private foundations have more restrictions and fewer tax benefits than public charities like community foundations.

Until 1969, the term private foundation was not defined in the United States Internal Revenue Code. Since then, every U.S. charity that qualifies under Section 501(c)(3) of the Internal Revenue Service Code as tax-exempt is a "private foundation" unless it demonstrates to the IRS that it falls into another category such as public charity. Unlike nonprofit corporations classified as a public charity, private foundations in the United States are generally subject to a 1% or 2% excise tax or endowment tax on any net investment income.

The Commission on Private Philanthropy and Public Needs, better known as the Filer Commission, was formed in 1973 to study philanthropy, the role of the private sector in American society, and then to recommend measures to increase voluntary giving. Organized as a privately supported citizen's board, the Commission came into being through the efforts of John D. Rockefeller III, Wilbur D. Mills, George P. Shultz, and William E. Simon. The selection of participants on the Commission reflected a desire for diversity of experience and opinions and included heads of religious and labor groups, former cabinet secretaries, corporate and fd Foreign Securities Corporation and President of Metropolitan Museum of Art.

  1. Edwin D. Etherington, Former President of Wesleyan University and Trustee of Alfred P. Sloan Foundation.
  2. Bayard Ewing, Tillinghast, Collins and Graham and Vice Chairman of United Way of America.
  3. Frances Tarlton Farenthold, Past Chairperson of National Women's Political Caucus.
  4. Max M. Fisher, Chairman of United Brands Company and Honorary Chairman of United Foundations.
  5. Reverend Raymond J. Gallagher, Bishop of Lafayette-in-Indiana.
  6. Earl G. Graves, Publisher of Black Enterprise and Commissioner of Boy Scouts of America.
  7. Paul R. Haas, President and Chairman of Corpus Christi Oil and Gas Company and Trustee of Paul and Mary Haas Foundation.
  8. Walter A. Haas, Jr., Chairman of Levi Strauss and Company and Trustee of the Ford Foundation.
  9. Philip M. Klutznick, Klutznick Investments and Chairman of Research and Policy Committee and Trustee of Committee for Economic Development.
  10. Ralph Lazarus, Chairman of Federated Department Stores, Inc. and Former National Chairman of United Way of America.
  11. Herbert E. Longenecker, President Emeritus of Tulane University and Director of United Student Aid Funds.
  12. Elizabeth J. McCormack, Special Assistant to the President of Rockefeller Brothers Fund, Inc.
  13. Walter J. McNerney, President of Blue Cross Association.
  14. William H. Morton, Trustee of Dartmouth College.
  15. John M. Musser, President and Director of General Service Foundation.
  16. Jon O. Newman, Judge, U.S. District Court and Chairman of Hartford Institute of Criminal and Social Justice.
  17. Graciela Olivarez, State Planning Officer and Director of Council on Foundations, Inc.
  18. Alan Pifer, President of Carnegie Corporation of New York.
  19. George Romney, Chairman of the National Center for Voluntary Action.
  20. William Matson Roth, Regent of University of California and Chairman of San Francisco Museum of Art.
  21. Althea T. L. Simmons, Director for Education Programs of the NAACP Special Contribution Fund.
  22. Reverend Leon H. Sullivan, Pastor of Zion Baptist Church, Philadelphia.
  23. David B. Truman, President of Mount Holyoke College.

Impact investing refers to investments "made into companies, organizations, and funds with the intention to generate a measurable, beneficial social or environmental impact alongside a financial return." Impact investments provide capital to address social and/or environmental issues.

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Further reading