Journal | Mission Throttle

Published

July 11, 2014

Filed Under

Private Capital, Public Good

This report, Private Capital, Public Good: How Smart Federal Policy Can Galvanize Impact Investing – and Why It’s Urgent (June 2014), by the US National Advisory Board on Impact Investing (NAB) provides a framework for federal policy action in support of impact investing. Simply put, impact investing generates measurable, beneficial social or environmental impacts alongside financial returns.

Simply put, impact investing generates measurable, beneficial social or environmental impacts alongside financial returns. The proposals in this report—some near-term and concrete, others longer-term and more ambitious—have the power to unlock dramatic economic activity and immense positive impact. Ultimately, they may serve as a catalyst to help change the way investors think about long-term risks and returns.

Read the Report

Published

July 11, 2014

Filed Under

Industry News

Impact investing: What’s in it for your nonprofit?

Are you a nongovernmental organization wondering how to benefit from impact investors? You are not alone. The Nonprofit Finance Fund recently surveyed U.S. nonprofits, and 20 percent of respondents said they will be seeking funding other than grants and contracts — such as loans and other types of investments — within the next year. In addition, 26 percent are considering pursuing an earned income venture as a way to diversify their sources of revenue. And the timing couldn’t be more perfect. Global investors are expected to commit 19 percent more capital to impact investments this year than they did in 2013, according to a joint study from JP Morgan and the Global Impact Investing Network. A growing percentage of their portfolio is projected to be deployed to sub-Saharan Africa and Asia as well.

It’s safe to assume that impact investing will play an increasingly important role in the funding of organizations involved in making an impact in developing countries. While the appeal of impact investing is undeniable, nonprofits should know that taking investors on board is a major step, and implies a vast number of changes in the way their organization operates — changes that might conflict with their mission. When would it make sense, then, to transition to a revenue-generating model and when would it be better to remain a “traditional” nonprofit? This guide will hopefully allow you to get a better sense of what impact investing means for your organization.

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Published

June 24, 2014

Filed Under

Industry News

The state of social entrepreneurship in Detroit

In recent years, Detroit has been the setting of several prominent business success stories, from the growth of restaurants like Slows Bar-B-Q to the rise of high-end watch manufacturer Shinola. These profitable companies have contributed to and benefited from the Detroit revival narrative and we are all familiar with their stories.

But there is a growing number of Detroit business ventures concerned with more than simply making products and earning profits, and their success is equally as important to Detroit’s future as that of traditional businesses. They’re called “social enterprises,” and their story deserves the same amount attention we give to traditional business development in the city.

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Published

March 7, 2014

Filed Under

Mission Throttle News

Mission Throttle Sponsors Statewide Prize for Social Entrepreneurship

Mission throttle is proud to partner once again with Michigan Corps for the 2014 Michigan Social Entrepreneurship Challenge, the nation’s first statewide competition in social entrepreneurship.

Mission Throttle will be sponsoring the Social Entrepreneur of the Year Prize, open to all social entrepreneurs across the state of Michigan who have created a sustainable model to address one or more of our state’s social or environmental challenges. Entries must demonstrate a clear revenue model, need for investment and potential for scale. The winner will be provided a $5,000 cash grant and admission to Michigan Corps’ Impact Investment Fellowship, valued at $15,000. Other prize tracks include health, urban revitalization, education and more.

Registration is open today and will close April 30th. Registered individuals and teams are asked to complete submissions by May 30th in order to compete.

Written By

Phillip Wm. Fisher

Published

March 4, 2014

Filed Under

General, Mission Throttle News

The Beginning

A Note From Mission Throttle’s Founder

In 1955, my parents founded the The Max M. & Marjorie S. Fisher Foundation on the philosophy that life’s purpose is found in service to others, in creating opportunities for those who lack them, in supporting human community in all its forms and empowering individuals in self-sufficiency. My father, ahead of his time, always said that he was interested not just in philanthropy, but in social responsibility to meet the obligations each one of us owes to society and introduced me to the idea of “Tzedekah” – giving to others not as charity, but as a mutually beneficial interaction.In 2009, I founded Mission Throttle, an impact investment firm dedicated to bringing those concepts to life by helping evolve the role capital plays in philanthropy and our communities.

As experienced investors, philanthropists and community leaders, the Mission Throttle team is privileged and uniquely positioned to deliver on what we see as our social responsibility, and we stand on the shoulders of other pioneers around the world who are already using their hearts and their heads, proving increased value to society while seeking financial returns.

Published

February 3, 2014

Filed Under

General, Industry News

The Biggest Social Impact Bond in The U.S. Will Keep At-Risk Young Men in Jobs and Out of Prison

Roca, a 26-year-old Massachusetts organization that aids high-risk young men who are on track for incarceration and early death, has proven its worth with an effective model for keeping its participants out of jail and in steady jobs. Now the organization is getting a big boost from a seven year, $27 million social impact bond–the largest ever in the U.S.

Social impact bonds are a relatively new type of philanthropy where donors put money in social impact programs, which have specific and tangible goals and make money back (paid by the state of Massachusetts, which has received $11.7 million in funding for the project from the U.S. Department of Labor) only if those goals are met. In this case, Roca is participating in a randomized trial to see how its efforts in keeping young men out of prison compare to the norm.
This is a group of young men in the country that we leave on the street.

The funding, which comes from loans and grants provided by organizations including the Goldman Sachs Social Impact Fund, Living Cities, and New Profit, will allow Roca to help 929 at-risk young men between 17 to 23, all of whom are either exiting the juvenile justice system or are in the probation system currently. Nonprofit advisory firm Third Sector Capital Partners organized the effort.

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Published

February 3, 2014

Filed Under

General, Industry News

Detroit’s New Economy Initiative Receives More Than $33 Million In New Funding From National, Regional And Local Foundations

NEI to continue success in transformation of Southeast Michigan through support of entrepreneurs

Ten national, regional and local foundations have committed $33.25 million in new funding to continue the work of the New Economy Initiative (NEI). NEI launched in 2008 when ten foundations came together to form a unique $100 million philanthropic initiative to address economic issues in Southeast Michigan. NEI, which is a special project of the Community Foundation for Southeast Michigan (CFSEM), will now have funding to support its efforts over the next three years to not only foster a culture of innovation and entrepreneurship, but also build a network of support for entrepreneurs and small businesses throughout the Detroit region.

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Published

May 21, 2013

Filed Under

General, Research

Program-Related Investments Gaining Traction, Study Finds

Report examines recent trends, challenges and opportunities for PRIs

Program-related investments (PRIs) are gaining attention from foundations for their potential to meet charitable purposes while generating financial returns, but their use remains limited, a new study by the Indiana University Lilly Family School of Philanthropy finds. Leveraging the Power of Foundations – An Analysis of Program-Related Investing, which was sponsored by Mission Throttle, analyzes key trends in foundations’ use of program-related investing. The report examines funders’ motivations and strategies for making PRIs and identifies potential obstacles and opportunities for expanded use of PRIs to advance charitable goals.

Among the study’s key findings:

Housing, community development and education were the program areas that received both the highest total dollar amounts
More than half of all PRIs were loans
Peer networks play an important role in supporting and educating foundations in the use of PRIs

“Our research shows that there is significant interest in and potential for program-related investments to help foundations advance their charitable goals, and many foundations that utilize PRIs report that they frequently produce successful results,” said Una Osili, director of research for the Indiana University Lilly Family School of Philanthropy. “There was notable growth in PRI use in the past decade compared to the previous decade, but to date they are being used by a relatively small fraction of all foundations.”

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