Category Archives: Urban Policy

Pooling Our Resources to Foster Black Progress: An Entrepreneurship and Impact Investing Framework

Check out the new book, Pooling Our Resources to Foster Black Progress: An Entrepreneurship and Impact Investing Framework. The book:

  • Examines the great potential with respect to the powerful nexus among: black earning/buying/investing power, philanthropy and resource-pooling, buying/banking black, entrepreneurship, business development, job creation, wealth-building, and economic and social progress 
  • Shows how a potent, large-scale resource-pooling vehicle with a comprehensive framework that is able to harness this potential, especially with the galvanizing power of online and social media, can have immense impact 
  • Presents a framework for establishing such an initiative, in the form of a national impact investment fund — the “Excellence and Ventures Transformation Fund” (or “EXCEL-TRANSFORM Fund”) — that would address unemployment and poverty and help finish the “unfinished business” of the civil rights movement.

[Full disclosure: the author, Dr. Michael Isimbabi, a finance and energy industry professional, consultant, and former professor of finance, is affiliated with this website.]

 Look inside the book (the first 10%) for free and get it here (at Amazon.com): http://www.amazon.com/POOLING-RESOURCES-FOSTER-BLACK-PROGRESS-ebook/dp/B00HTWJ8BY.

Also join the discussion on the feasibility and establishment of the EXCEL-TRANSFORM Fund, innovative strategies for self-reliant resource-pooling, and related philanthropy, entrepreneurship, impact investing and empowerment issues at the book’s website, www.PoolingOurResources.com, and Google Plus.

Lisa Hall, President/CEO of Calvert Foundation, on the Potential of Impact Investing to Transform Underserved Communities

Excerpts: Lisa Hall, President/CEO of Calvert Foundation, on the potential of impact investing to transform underserved communities

LisaHall-239x164Lisa Hall of the Calvert Foundation on Impact Investing: An In-depth Interview. Forbes.com. October 20, 2011.

….Rahim Kanani: How can we convince traditional investors to reevaluate their portfolios and consider social impact investing?

Lisa Hall: I thought about this a lot at the Congressional Black Caucus Foundation’s annual conference, where I spoke about impact investing and the widening wealth gap. During the past few years, our economy has suffered greatly and yet the wealth keeps building at the top. Impact investment creates a virtuous circle of empowerment, opportunity, and engagement by connecting investors, underprivileged individuals, and communities. We need more people to get involved in impact investing because it is a critical part of the solution to closing the wealth gap. ….

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Lisa Hall on How Calvert Foundation is Democratizing Impact Investing. Forbes.com. December 17, 2012.

Sixteen years ago, Calvert Foundation was born of a seemingly improbable idea: using investment dollars to help end poverty.

Today, investment banks describe impact investing as an “emerging asset class”;… the impact investing market is estimated to raise at least $500 billion in the next decade;…and according to Calvert Foundation’s recent research survey, 72 percent of financial advisors are interested in offering impact investing products to clients….

Impact investing is undoubtedly an idea whose time has come. As budgets of philanthropies and governments have shrunk, investment capital has come to be recognized as a tool that can address some of the world’s most pressing problems.…..

Continue reading

Stephen DeBerry on the Power of Impact Investing to Foster Black Progress

16535_200_150One of the very interesting presentations at the Innovation and Impact Forum for Black Male Achievement conference, held October 3, 2012 in New York City, was on the transformational potential of “impact investing” by Stephen DeBerry, Founder and Chief Investment Officer at Bronze Investments and a partner at Kapor Capital

According to his bio, DeBerry “makes and manages investments that align strong financial returns with positive social impact.”

Watch his full presentation here: Stephen DeBerry: Power of Impact Investing & Technology.

Related:

The BlackProgress.com essay, Financing Black Progress, Part 2: A Self-Reliance “Marshall Plan”: Creating a National Resource-Pooling Fund, discusses impact investing in the context of a national resource-pooling “impact fund” that can attract investments from millions of black investors.

See also: Pooling Our Resources on a Large, Transformative Scale: Breaking Through the Trust Barrier

Emerging Trends in Collaborative Black Philanthropy: The First Head and Heart Philanthropy Summit

From BlackGivesBack.com 

On August 10-11, 2012, nonprofit executives, foundation leaders and philanthropists convened at the inaugural Annual Head and Heart Philanthropy Summit in Martha’s Vineyard, MA, “for learning, professional networking and idea generation.”

The invitation-only summit was organized by Christal M. Jackson, founder of Jackson and Associates Group, LLC, a boutique fund development and philanthropic consulting firm, who noted: “…Given the serious issues facing our community, we must begin to collaborate for greater impact to create systemic change.”  Continue reading

Pooling Our Resources on a Large, Transformative Scale: Breaking Through the Trust Barrier

The “trust barrier” is the major obstacle hampering the establishment of a large-scale, self-reliance-based resource-pooling fund that can have a transformational impact in addressing urgent problems in our distressed communities. Even black churches are losing trust and credibility among many African Americans. There would be no “trust barrier,” however, if, for instance, five or more of the most respected African Americans got together to start a fund and hired a few highly competent people to run it.

A fund backed by such an ideal “dream team” is unlikely or infeasible (but not impossible!). The more likely way it will happen: a few visionary, motivated, and accomplished entrepreneurs who have solid, unblemished reputations, armed with a sound and credible business plan, convince some less well-known but equally highly-regarded people to back the fund. 

Such backing need not even be financial: by virtue of their strong reputations, relationships, and public standing, just lending their credibility, prestige, gravitas, and imprimatur to the fund will provide it with the instant credibility it needs to be able to attract contributions from large numbers of African Americans even at start-up.  This is the most likely way a potent large-scale fund will get established. 
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As discussed in the BlackProgress.com article, Financing Black Progress, Part 1: A Publicly Financed “Marshall Plan” Is Unrealistic, So What’s the Alternative? A “Self-Reliance Marshall Plan”?, given the current noxious and racially-charged political environment — in which even the reasonable and very modest American Jobs Act remains stalled in Congress – waiting for massive public investment in initiatives that can transform distressed communities of color is largely futile.

And there is no indication this situation will change in the near future. Regardless of who is president and whether or not Democrats retain control of the Senate and/or retake the House in 2013, Congress will most likely remain closely divided, highly polarized and acrimonious, and is unlikely to pass any legislation to fund, on a substantial enough scale, the types of initiatives that can sufficiently meet the dire needs of these communities.

Rather than simply standing by helplessly and wringing our hands while Congress remains gridlocked and yet another generation of children in distressed communities remains trapped in poverty and dysfunction, we must focus on organizing proactive self-reliance approaches to transform our own communities.

By pooling our resources on a large enough scale, we would be able to amass sufficient capital to adequately attack the most critical problems in our communities, especially with respect to education, entrepreneurship and business development, job creation, and wealth-building. The BlackProgress.com article, Financing Black Progress, Part 2: A Self-Reliance “Marshall Plan”: Creating a National Resource-Pooling Fund, discusses such a resource pooling effort–a National Ventures & Excellence Fund or “EXCEL Fund”. Continue reading

Wealthy African Americans Can Jump-Start Initiatives to Transform Distressed Communities Nationwide

In August 2011, New York City mayor Michael Bloomberg and philanthropist George Soros announced that their respective foundations will each contribute $30 million to a $127.5 million Young Men’s Initiative to “tackle the broad disparities slowing the advancement of black and Latino young men” in the city, by addressing the problems of education, poverty, health, unemployment, and incarceration.

An obvious question is whether, given the prevalence of these problems in many cities, the Bloomberg-Soros initiative can be replicated across the country, as Mayor Bloomberg hopes.

According to Politicker.com, Rep. Charlie Rangel (D-NY) “hopes President Obama takes a lesson” from Mayor Bloomberg:

“I think what the mayor has done is what the nation is going to have to do…This has to be a national policy.” [Rangel Wants the Nation to Follow Bloomberg]

Leaving aside how exactly the initiative can be translated into national policy, with respect to replication, few, if any, other cities have philanthropic-minded billionaires like Bloomberg and Soros who are similarly motivated and willing to put up substantial amounts to jump-start initiatives that address the problems of minority youth.

However, it does not have to happen on as large a scale as New York City’s–there are variants of the approach that are feasible for most other cities. Rather than wait for other Bloombergs and Soroses and/or the government, which would most likely be futile, one way is for a few wealthy people in an urban area to pool their funds on a more modest scale to jump-start an initiative. This could conceivably grow over time into a multimillion dollar effort through contributions by others, including people of more modest means who are similarly motivated. Continue reading

Black Philanthropy and the Creation of a Transformational National Resource-Pooling Fund

An obvious question naturally arises with respect to the feasibility of a large-scale national resource-pooling effort: Will a large enough number of blacks contribute significant amounts to make the fund sizable enough to have the desired transformational impact?

The BlackProgress.com article, Financing Black Progress, Part 2: A Self-Reliance “Marshall Plan”: Creating a National Resource-Pooling Fund, optimistically asserts:

“[T]here is strong reason to believe that there is a significant proportion of African Americans that constitutes a large enough base that would be willing to make at least modest contributions to jump-start the Fund and ensure its success. There is a strong tradition and long history of philanthropy and “giving back” in the black community, such as financial contributions to churches, charity and community organizations, etc. Of course, a crucial prerequisite is that potential investors must be confident that the Fund has the potential to successfully address the plight of those, especially children, who, sadly, remain trapped in distressed communities without much hope.” 

The following excerpts (emphases added) from various sources support this assertion: Continue reading

Financing Black Progress: On a Marshall Plan for the “Abandoned,” Self-Reliance, and “Pooling Our Resources” Via a Transformational National Fund

In his book, Disintegration: The Splintering of Black America, Washington Post columnist and MSNBC commentator Eugene Robinson (winner of the 2009 Pulitzer Prize for Commentary) exhorts that “our most urgent priority should be an all-out assault on the stubborn, self-perpetuating poverty and dysfunction” of the segment of Black America he dubs the “large, Abandoned minority with less hope of escaping poverty and dysfunction than at any time since Reconstruction’s crushing end.”

Of course, approaches and strategies for addressing this challenge must span several interrelated areas: financing (public and private), entrepreneurship, wealth-building, job creation, education, job training, politics and policy, racial disparities, societal and cultural trends, etc.

Robinson proposes in his book a publicly financed “Marshall Plan for the Abandoned” (MPA) that would involve “massive intervention in education, public safety, health, and other aspects of life, with the aim being to arrest the downward spiral.”

Even at the time he proposed it – the book was published in October 2010 when the political environment was relatively less toxic (before the November 2010 elections, the subsequent budget and debt ceiling debacles, and the nasty and racially charged political environment that ensued thereafter) – Robinson acknowledged that the MPA “will be expensive, and politically it will be a hard sell.” Nonetheless, he argued then that the MPA could be politically feasible: Continue reading