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.

  • Build Trust.

    Move away from a transactional mindset and towards genuine long-term relationship building. Honesty and accountability are key, especially when things go wrong or mistakes are made. This means being vulnerable and speaking truth to power, sometimes even within your own institution.

    Be Accountable.

    Set up accountability structures within your institution to ensure community feedback, insight, and decisions are captured and acted on in a timely and meaningful manner. Frequent temperature checks gauging community sentiments towards your participatory efforts help measure the success of your journey and identify any needed course corrections.

    Model Transparency.

    Clear and complete information is needed for community members to meaningfully participate. You can set the tone by ensuring any information shared is direct, understandable, and omits jargon. Information should be provided promptly—in a timely manner, in the written, visual, or oral formats most helpful to your community. Any requests should come with reasonable turn-around times.

    Compensate.

    Community members should be compensated for their time and expertise. This also means addressing other barriers to participation such as childcare and transportation. Community members are often asked for their opinions and input without remuneration. This perpetuates power dynamics and wealth inequities. Make sure to carve out a budget to compensate for participants’ time and effort. For more information on equitable compensation practices click here.

    Provide Clear Entry and Exit Points.

    Have clear timelines and milestones so the community can make informed decisions about engaging. Give clear direction on how community members can begin to engage, and how they opt out or stop. Consider exploring onramps and off-ramps to committees, positions on board, etc. to limit ambiguity and confusion.

    Allocate Resources.

    Dedicate resources such as time, team capacity, and budget to ensure that best practices are met throughout the process. This work takes significant staff capacity, relationship capital, time, and capital. It requires long-term commitment and dedicated budgets to match intentions.

    Shift Power not Burdens.

    While power sharing is important, it’s also important not to relinquish responsibility. Placing additional responsibilities on the community may also place undue burden. Institutions have access to resources and capacity that the community does not. Institutions should work with the community to identify the places they can absorb responsibilities, tasks, and work, to make it easier for the community.

    Set Expectations.

    Institutions must clearly communicate what is malleable and what is immutable within a process so community members can set their expectations accordingly. Knowing and clearly communicating where change is possible and where input matters targets the participatory process towards things that are influenceable. It also prevents community members from feeling like their perspectives and engagement weren’t respected. Before communicating this, institutions must internally understand where and how changes can be made.

  • Non-Participation

    Denying access to information, withholding information, or otherwise not sharing information as a result of unconscious or conscious exclusion. It can be intentional, such as when aiming to reduce harm before incorporating community voice.

    Inform

    Providing objective, relevant, and accessible information in a timely manner regarding decisions that have already been made. The information isn’t just clear and understandable, but it’s transparent and provides the context needed to make sense of it.

    Consult

    Gather input to obtain feedback, experiences, expertise, etc. through clearly defined channels controlled by your organization.

    Involve

    Ensure assets, needs, and concerns are integrated into processes and inform planning through bilateral processes that give everyone an opportunity to influence the direction/outcome. Involving the community includes more one-time engagements.

    Collaborate

    Ensure the capacity for the community to be in a substantive partnership role in decision-making and the implementation of decisions. Collaborating with the community includes more ongoing partnerships.

    Share Power

    You foster democratic participation and equity by sharing decision-making power. Confirm you are sharing power by tracking your efforts through continued conversation with your community to ensure they feel like they have the information and agency to make decisions.

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.