{"id":24238,"date":"2019-03-04T14:42:10","date_gmt":"2019-03-04T19:42:10","guid":{"rendered":"https:\/\/test.greenmoney.com\/2025\/?p=24238"},"modified":"2020-01-03T14:40:03","modified_gmt":"2020-01-03T19:40:03","slug":"aligning-resources-for-good-incorporating-sri-into-a-philanthropic-framework","status":"publish","type":"post","link":"https:\/\/test.greenmoney.com\/2025\/aligning-resources-for-good-incorporating-sri-into-a-philanthropic-framework\/","title":{"rendered":"Aligning Resources for Good: Incorporating SRI into a Philanthropic Framework"},"content":{"rendered":"
>> Back to March 2019<\/a><\/div>\n

\"\"Philanthropy is rapidly transforming to incorporate advocacy and investing, presenting exciting opportunities to create change. Among a field of new players, vehicles and approaches, one strategy gaining significant traction is Sustainable Responsible Impact (SRI) investing. Yet, as many philanthropies broaden their activities from traditional grantmaking to incorporate SRI investing, they need to change how their organizations assess and allocate financial as well as non-financial resources.<\/p>\n

Social investors are seeking new models not only for funding strategies, but also for impact measures, organizational design and management systems in order to guide these changes. Leaders are asking how philanthropies achieve impact as institutions, not just as sources of funding. In response to this surge of interest, Rockefeller Philanthropy Advisors launched a multi-year program of collaborative research called the \u201cTheory of the Foundation\u201d<\/strong>, <\/em>co-developed and supported by more than 50 funders to date. The initiative was inspired by iconic management expert Peter Drucker’s seminal article \u201cThe Theory of Business,\u201d<\/em>[1]<\/span> which called on business leaders to assess their fundamental assumptions in response to changing conditions. Drucker\u2019s challenge is highly pertinent to philanthropy, and is particularly urgent in this era of innovation and reevaluation.<\/p>\n

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Based on the Theory of the Foundation initiative\u2019s extensive research in the U.S., Europe, Asia, and Latin America, we developed the Philanthropy Framework, a tool to give emerging or established philanthropies, including those looking to grow their SRI practices, a structure to align resources for maximum impact. The Framework is comprised of three core elements:<\/p>\n

Charter<\/strong> – the organization\u2019s scope, form of governance, and decision-making protocol;<\/p>\n

Social Compact<\/strong> – its implicit or explicit agreement with society about the value it will create; and<\/p>\n

Operating Model<\/strong> – the approach to the resources, structures and systems needed to implement strategy.<\/p>\n

Foundations in the U.S. and Europe have begun using this framework successfully as a practical, concrete tool for analysis, planning and decision-making.<\/p>\n

As interest in SRI investing continues to grow in the philanthropic sector, we\u2019ve given much thought to how a foundation can apply the Framework to strategies that use all of its capital in order to create positive impact. Each of the three Framework elements can help define an SRI investing strategy.<\/p>\n

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