Jan Masoka + Mark Winfred Watson: New Funding Sources for Social Enterprises


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You may have the best idea in the world for social change, but if you're unable to raise funds to manifest your visions of grandeur, you're sunk. The good news is that there are some new, exciting ways to fundraise that didn't exist just a few years back, including social impact bonds, program-related investments from foundations, developments in donor-advised funds, and the entire field of impact investing. Join us to learn more about these promising developments, and discover how your cause can benefit from tapping into these resources.

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Jan Masoka + Mark Winfred Watson: New Funding Sources for Social Enterprises

  1. 1. Non Profit Boot Camp - Silicon ValleyJune 12, 2013Mark WatsonCEO, Keel Asset Management LLCCo Founder. Hope Team-Works LLCPrepared by Keel Asset Management/HOPETeam-Works1
  2. 2. Approaching Impact InvestingPrepared by Keel Asset Management/HOPETeam-Works
  3. 3. What is the business opportunity inImpact Investing?Addressing client needs• $3.7 Trillion of SRI investments in the U.S.• $13.0 Trillion Global SRI Investments• $1 Trillion additionally over next 10 Years (U.S.)– 5-10% of typical portfolio allocationsAddressing other multi stakeholder societal needs• Global austerity Initiatives, economic growth• Efficiency, Accountability & LiquidityPrepared by Keel Asset Management/HOPETeam-Works3
  4. 4. Community Investing Institutions 2010
  5. 5. Community Investing Grew Substantially
  6. 6. Community Investing Growth, by Sector
  7. 7. Community Investing Update 2012Community Investing: A total of 1,043 community investmentinstitutions (CIIs), including community development banks,credit unions, loan funds, and venture capital funds, collectivelymanage $61.4 billion.Prepared by Keel Asset Management/HOPETeam-Works7
  8. 8. Survey of Some Existing TransactionsNo of Issues % Notional(USD, MM)%Private debt 1,345 61 2,296 52%Bilateral LoanAgreement152 7 191 4Deposit 106 5 70 2Guarantee 10 0 73 2Equity-like debt 48 2 78 2Public debt 1 0 2 0Debt 1,662 75 2,710 62Private Equity 548 25 1655 38Public Equity 2 0 10 0Equity 550 25 1,665 38Real Asset 1 0 2 0Total 2,213 100% 4,377 100%Prepared by Keel Asset Management/HOPETeam-Works8Source: 2011,GIIN & J.P. Morgan survey
  9. 9. Private InvestorsInsuredsWellness AdministratorExchange ProviderMarketing SupportSocial Impactbond-issuingorganization(SIBO)Carriers’Positive MedicalClaims CostsVarianceWorking CapitalRepayment and ROI fromperformance- based paymentsPerformance-based paymentsFunding foroperating costsFlow of FundsGovernmentCredit EnhancementAdapted SIB ModelPrepared by Keel Asset Management/HOPETeam-Works9
  10. 10. Prepared by Keel Asset Management/HOPETeam-Works10Source: Nonprofit Finance FundNote: The Hybrid approach uses Human Capital government bonds to fund a loan pool whichsubsequently provides working capital to the NGO. The specific loan to the NGO is backstoppedby a private guarantee.
  11. 11. Hope Team-Works LLC: A Community CollaborationManagement PlatformPrepared by Keel Asset Management/HOPETeam-Works11Summary Points First community project collaboration management approach combining social finance,capacity building technical assistance and a virtual technology platform to supportcommunity project development Team of experienced and well regarded team of principals with demonstrated historiesof success in their respective areas Robust existing pipeline of projects that are “shovel ready” Open and flexible business model utilizing vendor partners allows the collaborationplatform to match capacity efficiently tobusiness opportunities globally Business model incorporates both short and long cycle value drivers to generate investorreturns. Investors participate in three business models simultaneously:o Financial advisory serviceso Social media virtual technology platformo Organizational Consulting/Fundraising
  12. 12. Our Objective:A community engagementplatform that synergisticallybrings togetherphilanthropy, volunteerism,corporate sponsorship andmission investments thatdeliver social andenvironmental outcomes.VirtualCommunityIndividualsNon-ProfitOrganizationsCorporationsand SponsorsInvestorsCommunity ParticipantsPrepared by Keel Asset Management/HOPETeam-Works12
  13. 13. Project Impact of our CollaborationManagement PlatformReturn EnhancementRisk MitigationFinancialProgrammaticPersistenceFinancialExecutionReputationalPrepared by Keel Asset Management/HOPETeam-Works13
  14. 14. Program Design & Implementation - Collaborative Management -Technology –Volunteer Training-Resource Development-Corporate Marketing Sponsorship & Financial ManagementThe PlatformCorporateFoundationsGeneral PublicGovernmentMediaNonprofitsVolunteersSocial Capital & BondFinancingProject CreditsPhilanthropyFinancialResourcesPrepared by Keel Asset Management/HOPETeam-Works14
  15. 15. Responsibilities of The Financial Advisor:Keel Asset Management LLC• Structure design• Program partner selection• Investor identification• Metric development• Program monitoring• Asset management– Institutional– Retail• Broker Dealer (Keel Securities or Partner)Keel Asset Management(SEC Registered FinancialAdvisor)Total ImpactAdvisors(LegalStructure)CommunityScience(Metrics)Prepared by Keel Asset Management/HOPETeam-Works15
  16. 16. Benefits of IntegrationIntegrating the Hope Team-Works platform and thefinancial advisory services of Keel Asset Managementon a project will provide:• Project risk mitigation from multiple funding sources• Increased project visibility• Sustainable and continuing community engagement forumbeyond the life of the bond• Opportunity to quantify and measure project impact anddegree of engagementPrepared by Keel Asset Management/HOPETeam-Works16