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Philanthropic Equity Funding Strengthens PHI

August 7, 2014

Last summer, PHI launched a five-year capital campaign (pdf) to raise $9 million in philanthropic equity funding designed to strengthen the scale, impact, and sustainability of the organization’s work. A little more than one year into this effort, PHI has now secured $3.4 million, completing the first of three rounds of this campaign.

Philanthropic equity is a unique approach to investing in social change. Rather than supporting a specific program, philanthropic equity finances upfront investments needed to build PHI as a whole. Guided by a targeted, multi-year business plan, campaign funds are being slated for capacity-building expenditures, such as: making strategic new hires to support expanded program work, making technology and infrastructure investments necessary to increase efficiency, and securing business development assistance to expand the market for PHI’s practice and policy services.

The F.B. Heron Foundation, a pioneer in the field of investment-based social change models, brought the concept of philanthropic equity to PHI’s attention, recommending it as a way to strengthen overall organizational sustainability and impact. Both Heron and the John A. Hartford Foundation provided crucial lead investment, guidance, and support.

A total of four funders contributed to the first round of funding: the John A. Hartford Foundation ($1.6 million), the Heron Foundation ($1.5 million), the Booth Ferris Foundation ($200,000), and The Clark Foundation ($100,000).

PHI has already seen significant results from its philanthropic equity investments — strengthening its management, informational technology, and development capacity, expanding its Coaching & Consulting Services and Workforce & Curriculum Development field-service capacity, and strengthening its balance sheet and cash reserves.

“We appreciate the dedication and vision that our first round of philanthropic equity funders have shown in supporting PHI’s work,” said PHI President Jodi M. Sturgeon.

“Their contributions have already helped PHI to broaden and deepen the impact of our work to strengthen both the quality of jobs for direct-care workers, and the quality of care for clients,” she added. “We’re excited about the possibilities ahead.”

PHI is now beginning the second $3 million round of this campaign, seeking to exceed $6 million in total philanthropic equity funds raised by early summer 2015. We welcome inquiries from funders interested in participating in the next round of the philanthropic equity campaign.

For more information, please contact PHI Executive Coordinator Angelina Del Rio Drake.

— by the PHI Development Team

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