The US-based Ford Foundation recently announced plans to disburse USD 1 billion in “mission-related investments” with initial foci on access to financial services in developing countries and affordable housing in the US. Because foundations in the US are required to spend 5 percent of their endowment on charitable purposes, many invest the other 95 percent of their assets with the aim of replenishing that 5 percent, often without regard to social impact. For the Ford Foundation, this led to annual grantmaking of roughly USD 500 million. Ford Foundation President Darren Walker writes: “If philanthropy’s past half century was about optimizing the 5 percent, its next half century will be about beginning to harness the 95 percent as well, carefully and creatively.”
The Ford Foundation, which was chartered in 1936 by Edsel Ford, provides grants and loans that address issues of civic engagement, human rights, social justice, economic fairness, metropolitan opportunity (jobs, school transportation, housing), sustainable development, education, freedom of expression, and sexuality and reproductive health and rights. As of 2015, it reported total assets of USD 12.1 billion and program activities of USD 657 million.
By Sascha Strobl, Research Associate
Sources and Additional Resources:
Ford Foundation financial statements:
New York Times story on Ford Foundation announcement:
Ford Foundation on MicroCapital:
Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/.
- MICROCAPITAL BRIEF: Camilla Nestor Named CEO of MIX, Provider of Data on Microfinance, Agricultural Finance, Digital Financial Services
- MICROCAPITAL BRIEF: Apply by June 5 for The MasterCard Foundation’s $150k “Clients at the Centre” Prize
- MICROCAPITAL BRIEF: Moeda Introducing Cryptocurrency Aimed at Facilitating Financial Inclusion after $5m “Initial Coin Offering”
- MICROCAPITAL BRIEF: AlHuda, Azerbaijan’s SER Agree to Promote Islamic Finance in the Caucasus
- MICROCAPITAL BRIEF: Credit Suisse Opens Impact Investing Department