Published in 2002 | Download [PDF] 242 KB
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Jed Emerson, Senior Fellow, William and Flora Hewlett Foundation and Lecturer in Business, Center for Social Innovation, Graduate School of Business, Stanford University
This paper presents the perspective that the purpose of foundations is not simply to engage in grant making, but rather to invest in the creation of social value. The idea is also presented that available foundation assets for supporting this process of social value creation should be viewed as not simply its grant making ability, but its overall investment strategy for both core assets and philanthropic investments. A strategy for achieving maximum social impact—The Unified Investment Strategy—is presented, and the implications of that strategy are discussed. The paper’s appendix includes an extended discussion by two foundation trustees regarding the question of fiduciary responsibility.