 This year, in our 10th anniversary, we decided that we needed to make the tent even bigger and that there was an opportunity to invite some guest curators to curate content at SoCAP that was central to the work that they do. Perhaps they host another conference like VLab, like Mission Investors Exchange. Some of these curators have their own robust community that's having these conversations with many like-minded thinkers, people in their own sector, and we want to continue to bridge across those silos and make sure that all of those conversations have a place here at SoCAP. So, you're going to hear from two of our guest curators here in the plenary. First, we have Mission Investors Exchange, which is an amazing network of mission-aligned foundations that are aligning their assets with their mission. And to speak more about the work that Mission Investors Exchange does and highlight some amazing work from this Foundation community, I want to welcome Matt Onick to the stage. Thank you, Lindsay, and congratulations to you and SoCAP on 10 incredible years. My name is Matt Onick, and I am the CEO of Mission Investors Exchange. We're the leading network of foundations engaged in impact investing with over 200 members in the United States. It's an honor to be here with you today as one of SoCAP's five guest curators and to present a series of sessions throughout the day that highlight our members and the role of foundations. So we're here to talk about foundations. Some of you might wonder where foundations fit in the impact investing ecosystem. The answer is simple, right at the heart. Consider that SoCAP's purpose is to bring together money and meaning. Well, that's our sweet spot. It's what foundations have been doing since their inception, long before the term impact investing was coined. Let me be clear, though, this is not your grandfather's philanthropy. There is an important evolution occurring, and philanthropy is at the forefront. Foundations are now developing innovative investment models that can catalyze the entire impact investing marketplace. They are providing flexible and patient capital that de-risk individual transactions and even whole markets. These foundations are opening the door for more mainstream investors and capital to come into the impact investing sector. In Detroit, for example, loans and guarantees from the Kresge and Ford Foundations have helped bring local banks back into the home mortgage market to lift up that city's decimated housing stock. In another example, the McKnight Foundation could not find the kinds of investments that aligned with its climate-oriented mission, so they helped seed a new public equities fund with Mellon Capital so that investors like them could support companies that are indeed reducing carbon emissions. Now we all know that the field is growing faster than ever, and that's great news. We need more participants, we need more capital if we're gonna make progress against our society's biggest challenges. But as the field evolves, foundations have another special role to play. They must help serve as the champions of impact. As we like to say, they need to make sure that we are keeping the impact in impact investing. These are all concepts that you'll hear about in detail in our sessions today, with real and actionable examples from foundations like the two you're about to hear from and their partners, all of you in this room. I'm thrilled now to introduce two of the leaders, two true innovators having outsized impact today. Dr. Emmett Carson is the founding CEO of Silicon Valley Community Foundation, the world's largest community foundation with more than $8 billion in assets. Emmett's work is at the epicenter of technology and innovation in the US and indeed around the world. And he is using philanthropy, impact investing, and a range of other tools to literally reimagine what community means. And Herron Foundation president, Clara Miller, is known for coining or co-opting many of the key mantras of our field, like know what you own, or all investing is impact investing. Well, at Herron, these aren't just phrases. This year, the foundation reached an important milestone. They have invested 100% of their assets into their mission of helping people in places out of poverty. As Clara will explain though, 100% is really just the beginning for Herron and others like them. I am confident the next two leaders will leave you asking, what are we waiting for, and what more can we do together? Please welcome Emmett Carson. Good morning. That's not too bad. Good morning. All right, thanks for those kind words. It is wonderful to be here with Clara Miller. You saw her name up there? Just say Clara Miller, hero. Leave off the end. She's really been a champion in foundations for this work, and so it is an honor for me to be on this stage with her. So, you know, Matt was overly generous for me. I look at the work the Silicon Valley Community Foundation is doing as a beginning, as a starting point, while relatively we may be ahead of where some of my colleagues are among community foundations. We aren't anywhere near where we need to be and where I hope we will be. So, this is my first SOCAP. I hope it's not my last SOCAP so that you can hold me accountable for doing more in the future. So, I wanna talk about three things very quickly. One, I wanna talk about what the Community Foundation is doing with our corpus, that funds our unrestricted assets. Secondly, I wanna talk about how we are working with our donor advisors. And third, I wanna talk about who's investing the money. So, quickly, a primer on community foundations. We raise money and we give money. We have money that we have complete control of with our board. We have other monies that donors recommend through us to nonprofits. So, we have two pots of money, if you will. Two very broad pots. I wanna talk about both of those pots. To put it in perspective, we have $8.3 billion in assets under management. Of that amount, $586 million or so are in the social responsible space or impact investing. As I said, that's a lot in that space relatively. It's not anywhere near where I hope we will be able to go. Of that amount, $135 million are what are in traditional investments. We're in CDFIs, insured interest bearing accounts. We're maxed out in that space. So, as a result, we started to think about, well, can we start to make investments to these CDFIs that are non-insured interest bearing? And understand we have a long-term commitment to the community. We worry about fiduciary responsibility. And after thinking about this, we said there were criteria that we could come up with around default rates, around liquidity, several other things, peer benchmark those institutions. And based on that, we said, yes, we are willing to make non-insured interest bearing deposits. We have allocated up to $40 million in that space as our first step. We've made our first grant of $8 million to the self-help federal credit union. So that's just started. We're gonna be doing more in that space. And I think that's a role for community foundations to get beyond just the insured space. If self-help put all of that money into one of its product lines, that would mean 60 home mortgages, 665 car loans, or 3,700 personal loans. So okay, let me go now to what we're doing with our donor advisor. So of that $586 million or so, $360 million are funds that donors have opted to put in socially responsive investments. And that's, again, traditional funds that are in the impact investing space. But what's fun and what's special is the $82 million of additional money that we are working with individual donors to do PRIs and MRIs, in addition to that 360 million. And now understand donor advice funds are the fastest growing space in philanthropy in the United States. So if you can tap into those donor interests around impact investing around specific projects, either locally, nationally, or globally, there's tremendous opportunity. So we have a donor, I'm gonna give you one example. We have one of our donors who is very concerned about the issue of blindness. 80% of blindness is curable or preventable. The major challenge to blindness in developing countries is the inability to scale facilities. So this donor was, we connected this donor with a group called the I-Fund. And the I-Fund said we want to leverage scaling hospitals in these other countries to expand the services for medical services for blindness. This donor put up an investment of $500,000. They were willing to take a reduced 2% rate of interest and they were willing to say, and this was critical, the first losses would come out of their fund. So they said, look, you all will put our money up, we'll take the first losses. That was in 2010. I'm pleased to say that that $500,000 investment leveraged $14 million from traditional investors. Now what happened? They found three hospitals, China, Nigeria, and Paraguay, and they just repaid $17.7 million back so the loans are completed. But what was the impact of just those three hospitals able to expand their operations? This is the increase in the numbers that they were able to produce over what they did before the expansion. 280,000 cataract surgeries performed, 3 million outpatient procedures performed, 44% of the surgeries were at low or no cost. That's what got leveraged for people because of a donor being willing to take a subordinate position and being willing to take a reduced rate of interest. We have a lot of other examples of that work, but I think that is the next frontier for community foundations. Lastly and very quickly, and someone on the previous panel mentioned this, we do have to spend more time and attention about the composition of the people who are managing the resources. And I mean by that people of color and women. We are looking at that across the investment managers that we work with, whether they're in the impact investing space or not, but that it is not acceptable for those of us who champion, how is the money being used not to ask the question, are we being equally mindful? Are we creating opportunities for the people who are managing that money? Thank you very much. Thank you so much, Emmett, for your kind words. It's just, it's terrific to be here and good morning, everybody. Am I getting feedback? Yes. I'm often asked, we were kidding around before the show, and I'm often asked, what percentage of foundations are putting 100% of their assets into impact investing? And I always say the same thing. I always say all of them are, they just don't know whether the impact is good or bad. So, but there is some glimmering of progress and I think the kind of thing that Emmett's doing at the Silicon Valley Community Foundation is exemplary. We've got private foundations such, moving along that path, doing more and more and actually making allocations from their endowments. Am I not, oh, okay. All right. Sorry. We wait another couple minutes. There's gonna be somebody else coming out from behind. Foundation's making large allocations from their endowments and others are starting to look at ways to invest a range of assets consciously. Private foundations are contributing to the infrastructure of impact investing as they have for years, actually. Whether it's sustainability accounting, standards board, the GEN, B-Corps, CECP, there's a whole range of organizations that are coming up that are very important to making sure that impact investing retains its integrity. And in particular, I think, and Emmett exemplifies this, community foundations are increasingly front and center on very creative ways of doing connective investing in place, whether it's in place here in the US or in place globally, deploying donor advised funds, social capital similar to revitalize people in communities. But there's a long way to go. We've got work to do. And we've, especially from the point of view of private foundation, very far to go before our performance catches up with our rhetoric. And we're talking about being risk capital for society. We're talking about being innovation engines. And we're not, in my opinion, yet fulfilling our fiduciary responsibility of obedience to mission, which applies to all our assets. We have a range of what I call deadly perils and saving graces. And we have a choice as foundations of what path we wanna walk down now. You know, Heron has 100% of its assets aligned for mission. But as Matt alluded to, it's a false summit. We have three bigger imperatives. We wanna optimize for finance and mission together continually, this doesn't stop now, we don't eat bonbons. We wanna be and build networks and infrastructure to influence others outside our little terrarium of grantees, of investees, our own assets. Because foundations are less than 1% of assets globally. And we wanna do, as we say, connective investing. So we start to understand how our money actually affects people in their world to rebuild, essentially rebuild an economic ecology in this country for Heron and elsewhere in the world. What are the deadly perils for foundations? First of all, imagining that mission and money are actually separate that they ever were, I call it kind of believing our own business model. We're institutions that are better suited with this notion of having grants over here and having investing over here to address bounded problems in the 19th century, not the systemic ills in real time we have now. We are facing or probably avoiding the philosophical and practical limits of our own business models. Thus inadvertently as we go forward with this separation of investing from giving, reinforcing the convenient misconception that financial return and social benefits are somehow opposites. I know I'm preaching to the choir here, but the choir is still too small. And at foundations, it's a very strongly held belief that we must separate money from mission, that those things don't exist in the unit together in the universe naturally. Deadly peril number two, we will lose the moral high ground if we don't connect money and mission. We must make sure that our rhetoric about urgency, reconnection, perceived risk guides our real activities. We're philanthropic institutions, not everyday investment managers. We have a duty to challenge ourselves to be moral leaders, not only in our own world, in our foundation world, but in the larger economy, in the larger community. Deadly peril number three for the foundations with conventional business models, we become irrelevant. There are foundations being created every day that do not have the kind of business model where 100% of the assets are essentially conventionally invested, and a small amount of grant money and PRI money is made available for the mission separately. Omidyar, Skoll, Emerson Collective, Zuckerberg, Chan, I think I could probably go on, and especially in San Francisco, this is becoming business as usual. Foundations, private foundations, we're making ourselves irrelevant. We're being called legacies foundations, that tells you something right there. So, saving graces and future opportunity, first we know that all of us, all owners of capital, investors, managers, managers of enterprises, everybody has a stake in the state of the world, period. We all are in one world. We cannot, there is no place to go that we'll have a fresh start and no problems. We foundations, if we want to embrace it, have a unique position and vantage point to try to match our performance and our rhetoric, which we have not yet done. Here are some possibilities. We can be the change we want by advocating for and unifying the investment and mission function in our operations and in our actions and in the way we think about the world. It creates a huge explosion of possibilities as far as what we need to do in the world today. We can stand, we can be influential investors beyond our walls, where our nonprofit institutional status gives us standing to encourage others by example and to not have a dog necessarily in the commercial hunt. We have that vantage point and it's there for the taking. And finally, we can stand vigil for mission and impact at the intersection of money and mission. There's a lot of, as we see big players come into the pool, there's more of a threat that we are going to be undermined by impact wrapping and green wrapping and all of the other kinds of fraudulent behaviors. We are fit to make sure that we make the accounting and the metrics available to stand guard. To do so, we've got to impart the urgency that is today real to be the change ourselves. Philanthropy is a way of life. It's not an afterthought, it's not separate from, it's not somehow a kind of a thing you do after you have your regular business life. It is a built-in personal and institutional imperative. Thank you.