This story begins in 2002 in the western suburbs of Philadelphia. Clemens and a small group of colleagues saw the need to create a conscious and sustainable world through engaged philanthropy and had the vision to align practice with purpose – at the individual level, in the community, and on a global scale.
Read More54.46% in poverty
27.56% unemployed
209 deaths from overdoses in 2017
These are the sobering statistics of Harrowgate, a Kensington neighborhood north of Lehigh Avenue, that is only 15 minutes north of Center City on the Market-Frankford subway line, and three subway stops away from Fishtown – “the hottest neighborhood” in the United States according to Forbes magazine.
Read MoreWhat comes after innovation? As CEO of Benjamin Franklin Technology Partners, an organization charged with catalyzing the Philadelphia region's entrepreneurial and innovation economy, I've struggled with this question. It was 2001 when I began to follow the emerging national narrative around impact, marked by Harvard Business Review's January 2001 issue: Ideas with Impact - an issue I still have to this day. In it, an article by Charles Handy entitled "Tocqueville Revisited: The Meaning of American Prosperity." revisits Tocqueville's journey, but focuses on capitalism instead of democracy. Handy writes of the need for "new capitalism" and discusses American Nobel Prize Winner Robert Fogel's optimism that "a new sense of purpose…will be at the heart of the next stage of capitalism." The idea resonated with me then and stayed with me over time.
Read MoreAlthough community development finance has primarily built its foundation around real estate investing, we have learned that in a city like Philadelphia, neighborhood revitalization does not always empower local residents to move up the economic ladder but can often lead to displacement through gentrification. An impact economy requires both growth AND mobility, and thus, our strategies must include a focus on both improving places AND empowering people. To this goal, an effective impact capital strategy is about more than just building and investing financial and physical capital. We should also consider how we build and invest in human and social capital in our city.
Read MoreMany who hear “Habitat for Humanity” have some familiarity with Habitat for Humanity's affordable housing work, the phrase “a hand up, not a handout,” and President Jimmy Carter and his wife, Rosalynn Carter's the tireless commitment to the organization over years. However, few are aware of our furniture and home goods social enterprise, ReStore, that infuses dollars into our Homeownership and Home Repair Programs - two programs that provide affordable payment options, sweat equity, and volunteer labor opportunities for low-income populations that have housing needs in Philadelphia.
Read MoreAt the Wharton Social Impact Initiative, we focus on how businesses and finance can be leveraged to drive inclusive economic development. Over the last decade, we have noticed a dramatic increase in the number of investors seeking to achieve financial returns as well as measurable social or environmental impact across their investable assets. This approach to investment – generally known as “impact investing” – takes many forms across asset classes, impact sectors, industries, and geographies. And, the growth in impact investing is leading to a range of partnerships, approaches, and funding strategies.
Read MoreAt the Total Impact Conference in late April, The Philadelphia Foundation and Reinvestment Fund announced a joint initiative named PhilaImpact Fund. This impact investing vehicle will allow each organization’s investors to fund development projects in Philadelphia and the surrounding counties. The PhilaImpact Fund connects investors, philanthropists and engaged citizens with the projects, initiatives and big ideas that generate results on a local level.
Read MoreOver the past several decades, investors, economists, and business owners alike have acknowledged the need to move from shareholder capitalism to stakeholder capitalism. Research shows that Millennials seek meaningful work and investments that make money and make a difference. And since Millennials represent 50% of the global workforce and will inherit $40 trillion in the coming decades, they will shape labor and capital markets like no other generation. The existence of this trend raises important questions that B Lab's Liz Fernandes explores in this Perspectives piece.
Read MoreLast May, Reinvestment Fund announced a $50 million public bond offering to further its mission to build wealth and opportunity for low-income places and people. The bonds were rated AA- by S&P and represent one of the first examples of connecting CDFIs to mainstream capital markets. Demand for these bonds far exceeded expectations and the offering was oversubscribed. It was a testament to the demand among institutional investors for viable options to channel their capital towards impact, while also receiving market-rate returns.
Read MoreThere’s a collective societal consciousness that thinks of traditional stock and bond markets as prudent and safe while viewing direct investments into businesses and non-profits as risky. The Untours Foundation seeks investments with local and/or societal benefits and makes the case that perhaps the level of risk isn’t so different after all.
Read MoreWhy does ImpactPHL chair John Moore feel so strongly about optimizing investments beyond financial metrics, and Philadelphia’s role as a global hub for such innovation? In volume one, he explains the perspective of ImpactPHL Perspectives.
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