Endowment.

The endowment is the total amount of investable assets within an institution. Participatory Investing could be applied to the full sum of the endowment or could be a strategy applied to a carveout.

Non-Participation - The community may not be aware that we have an endowment or that we can use it to make investments or we don’t share information about where we are invested, who we use to advise/manage it, or any processes related to it.

Next Steps +

  • Assess what kind of non-participation your org engages in:

    • Exclusionary Non-Participation

      • Information about your endowment and decisions about it are held internally.

    • Harm Reduction

      • Do a deep dive into your investment portfolio and understand what you are invested in.

      • Review your Investment Advisor and/or Asset Manager performance against mission alignment and impact.

  • Shift from exclusionary to harm reduction or subsequent participatory strategies.

Inform - We publicly share information about the endowment—where it is invested, its size, etc.—after we have made decisions.

Next Steps +

  • Publicly disclose where your endowment is invested. Don’t just know what you own, publish/share what you own.

  • Publicly disclose Investment Advisor and/or Asset Manager.

  • Holding an AMA (Ask Me Anything) Session with your Investment Advisor or (O)CIO.

Consult - We gather feedback from our community to support our hypotheses about our endowment.

Next Steps +

  • Survey community members, including grantees and borrowers, on whether or not they would prefer your institution to spend down, exist in perpetuity, or somewhere in between.

  • Survey community members on what Environmental, Social, and Governance factors matter to them when considering impact investing strategies.

Involve - We consult our community members to help shape and inform our endowment—sourcing, investment strategies, etc.

Next Steps +

  • Host a conversation with community members to gather their input and suggestions on navigating the question of perpetuity.

  • Hold a conversation with community members to understand how they feel about your current investment portfolio.

Collaborate - Community members play an active role in the structures that oversee the endowment through meaningful processes they own, membership on advisory boards, or other formal power-holding structures.

Next Steps +

  • Have an ongoing Advisory Committee made up of community members who give feedback and make recommendations on strategy surrounding the endowment including target impact areas.

Sharing Power - We have numerous opportunities for community members to meaningfully engage with and make decisions on our endowment decisions.

Next Steps +

Hire a community-led investment advisor.

Review investment portfolio with a community-led advisory committee that has voting/veto power over potentially harmful investment funds.

Create an endowment carve out that is partially or fully controlled by a community advisory board.